ISLAMABAD (July 31 2010): The Federal Board of Revenue (FBR) has not moved any summary to the Ministry of Finance to revise downward revenue collection target of Rs 1667 billion for 2010-11. So far, the provisional revenue collection during first month of current fiscal year ie July 2010 stood at Rs 77.3 billion against target of Rs 90.1 billion.

The revenue collection in July 2010 would be around Rs 90 billion after compilation of final figures. Up to July 30, the revenue collection of around Rs 77.3 billion is expected that would further increase after incorporating figure of July 31.

Sources told Business Recorder here on Friday that the board has also assured the donor agencies to collect Rs 1667 billion during current fiscal year. So far, the FBR has not requested the Finance Ministry to downward revise the revenue collection target for current fiscal.

When the revenue collection target was worked out during budget preparation exercise for 2010-11, tax projections of Rs 1700 billion was figured out in June 2010. The estimates of Rs 1700 billion was worked out taking into account different economic indicators including projected collection of Rs 1380 billion in 2009-10.

However, the revenue projections were downward revised from Rs 1700 billion to Rs 1670 billion for 2010-11 during budget preparation exercise. Therefore, no further reduction has been made in the revenue collection target for 2010-11. The total revenue collection in 2009-10 stood at approximately Rs 1328 billion after compilation of final figures, sources said.

The tax projections of Rs 1667 billion has been calculated on the basis of certain assumptions of GDP growth, inflation, imports and other factors having direct impact on the overall revenue collection. The status of such assumptions which formed basis for setting target for current fiscal would be clear in coming months. The issue of sales tax on services would also have a direct impact on overall revenue collection in 2010-11.

Copyright Business Recorder, 2010