Sources told Business Recorder here on Sunday that the FBR held a day-long chief commissioners' meeting at FBR Headquarters to seek input of field formations on budget proposals for 2018-19. The FBR House was open on Sunday for its officials and meeting was specifically designed to discuss budget proposals of the field formations at board's level.
Tax authorities have been informed that tax machinery is trying its level best to achieve the assigned target of Rs 4,013 billion. For achievement of the estimated revenue collection target of Rs 4,450 billion for 2018-19, the FBR has sought input of budgetary measures required for next fiscal year. The Rs 4,450 billion are initial estimates for 2018-19 which may be revised in view of impact of taxation and relief measures in next fiscal year.
The FBR had provisionally collected net revenue of over Rs 2,621 billion during July-March (2017-18) against Rs 2,260 billion collected during the same period of previous fiscal year, reflecting an increase of around 16 percent. The required growth in revenue collection is 19.5 percent for meeting the monthly revenue collection in 2017-18. The provisional collection for the month of March 2018 was 361 billion excluding collection on account of book adjustments.
The budget proposals for sales tax and federal excise focused on broadening the tax base, legal changes in laws and increasing the revenue collection through new measures for 2018-19.
The input/suggestions of field formations were discussed within the context of genuine contribution towards framing of broad-based and workable tax policy: improvement in tax laws; broadening of tax base for a wider participation in Revenue generation efforts; enhancement of tax to GOP ratio; generation of revenue and facilitation of taxpayers, sources added.
According to the FBR, the Board has invited the proposals for the coming budget for FY 2018-19 relating to sales tax and federal excise on the laid down broad parameters. Firstly, the budgetary proposals should be pro-revenue. Secondly, the proposals should focus on broadening the tax base and increasing the revenue. Thirdly, the amendments may be suggested in any of following law/rules etc including Sales Tax Act, 1990; Federal Excise Act, 2005; Sales Tax Rules, 2006; Federal Excise Rules, 2005; Sales Tax Special Procedure Rules, 2007; Sales Tax Special Procedure (Withholding) Rules, 2007; Sales Tax Notifications/ Circulars /General Order/ Clarifications/ Rules and Federal Excise Notifications/ Circulars/ General Orders/ Clarifications/ Rules.
The FBR said amendments may be suggested with a view to achieve simplification, remove difficulties and anomalies and to abolish any outdated/obsolete provisions and wherever possible a draft proposed amendment/procedure may be enclosed along with revenue impact.
Field formations submitted proposals for eliminating tax fraud, fake and flying invoices, plugging loopholes, if any, facilitating genuine taxpayers and making the procedures transparent, sources said.
The proposals have been analyzed by the FBR keeping in view the consequences for the other related trade groups which might be adversely affected by the proposed measure.