Revenue Collection: Target Missed by Rs600 In 2018-19, But Eyeing Much Higher Figures Next Year!
No need to wonder why the PTI government has opted to an extraordinary increase in the gas and electricity tariffs [although the hike was unavoidable for it because of the deal inked with IMF], as the reason is simple: it missed the revenue collection target in 2018-19 and there is very little chance of meeting the figures in the next financial year. Hence, we can expect that the government will resort to increasing indirect taxes and further hike in utilities’ prices.
And that’s why Shahbaz Rana in an exclusive report for The Express Tribune on Sunday reported that the PTI government is set to miss its annual revenue collection target by nearly Rs600 billion as it has so far collected Rs3,7600 billion despite a better response to the tax amnesty scheme in the last one week.
And it has made the tax collection target of Rs5,550 billion for the next year impossible to achieve.
Meanwhile, The Express Tribune’s report also mentioned that FBR Chairman Syed Shabbar Zaidi said the tax amnesty would not be further extended, according to an official announcement by the FBR on Saturday.
“So far, 38,403 people have availed the tax amnesty scheme and another 33,815 cases are in process,” said Dr Hamid Atiq Sarwar, the official spokesman for the FBR.
He did not disclose the amount that the people paid in taxes while availing the amnesty scheme. But a source in the FBR said less than Rs36 billion had been deposited in the kitty along with the tax amnesty declarations as people preferred to pay taxes at a later stage.
The Assets Declaration Law allows people to file declarations till June 30 and deposit taxes later by paying penalties. The tax amnesty, which had been launched on May 12, got a very poor response in the first month and only 250 people availed it and paid Rs450 million in taxes. But it started getting good response in the last week, which also provided face saving to the FBR.
Despite around Rs36 billion in amnesty payments, the FBR could provisionally collect Rs3.762 trillion in taxes till Saturday, according to sources in the FBR. The collection was down by 2 per cent or Rs80 billion when compared with Rs3.842-trillion tax collection in the last fiscal year.