Tax revenues increased to the tune of Rs6 billion ($66.67 million) in the first seven months (July-January) of the current fiscal year as the newly placed Afghan Transit Trade (ATT) mechanism helped the Federal Board of Revenue (FBR) to curb smuggling and enhance green channel imports.
According to official data, FBR fetched $455.56 million in the first seven months of the current fiscal year that rescued tax authorities and materialised around 27 to 28 per cent growth so far in the current fiscal” in a bid to net the desired target of $21.69 million for whole financial year 2011-12.
The FBR has so far collected $12.47 billion in the first eight months and it requires a challenging task to net the remaining $9.22 billion in four months (March-June) period to display the desired target of $21.69 billion its board on June 30, 2012.
A top official of FBR said that strict compliance of rules and procedures laid down under the newly placed mechanism for clearance of goods under ATT started yielding positive revenue impacts as smuggled items were controlled vigorously, which resultantly helped import of certain items rise through official trade and increase revenues substantially.
Other administrative efforts include audit of withholding tax agents that netted $77.78 million in first seven months of the current fiscal year.
The effective monitoring of withholding agents is the major area that can yield more revenues in remaining months of the current fiscal year. The recovery of arrears fetched $100 million in first seven months of the current fiscal year, rescuing the FBR to materialise revenue targets so far in the current fiscal year.
The official data shows that the FBR generated revenues of $88.89 million through current demands of tax liabilities piled up against taxpayers. The government had imposed 15 per cent income tax surcharge and collection was due from companies on December 31, 2011, along with their returns.
This 15 per cent income tax surcharge helped the FBR collect $55.56 million from this account. Furthermore, the broadening of tax base exercise has materialised revenues to the tune of $11.11 million in this period.