According to sources, the target might be slashed from Rs 3,621 billion to around Rs 3,500 billion for outgoing fiscal year (2016-17). The FBR is already taking enforcement measures to meet the assigned revenue collection target of Rs 3.621 trillion for 2016-17.
According to sources, the revenue shortfall would be overcome through administrative and enforcement measures. However, the revenue collection for the first nine months was Rs 2,260 billion.
In March 2017, the FBR recorded a growth of 16.1 % in revenue collection, as it collected Rs 345 billion against a collection of Rs 297 billion in the corresponding month of the last year. Special tax recovery officials have been deputed in the field formations to ensure recovery of arrears and recoverable tax demands as admissible under the law. The recovery of current tax demands and recovery of arrears is the prime focus of recovery plan.
The income tax initiatives during 2016-17 include taxation of real estate sector, imposition of withholding tax (WHT) on transfer of immovable property, imposition of capital gains tax and taxation of builders/ developers under section 7C and 7D of the Income Tax Ordinance, broadening of tax base (more than 465,000 notices issued over the last three years), enhancing the scope of differential taxation and real time monitoring of withholding agents down to unit level through a digital assistant/ directory. The initiatives also included change in audit policy and parametric selection of audit cases for tax year and rationalisation of jurisdiction for optimal output ie corporate cases consolidated under corporate RTOs/ zones and remaining jurisdiction organised on territorial basis.
Copyright Business Recorder, 2017