ISLAMABAD: The FBR has revised the Customs Duty (CD) target with an amount of Rs28billion. In this regard, the FBR has distributed revised CD target amongst all the 14th Model Customs Collectorates working all over the country. The CD mostly remained on track in the first eight months, so it was decided to revise the upward customs target with the amount of Rs28billion.
On the Indirect Taxes side, the total assigned target stood at Rs2063billion including Rs413billion for Customs Duty, R1437billion for General Sales Tax (GST) and Rs213billion on account of Federal Excise Duty (FED).
In the budget 2016-17, the FBR has distributed its overall target of Rs3621billion by assigning Rs1558billion to Direct Taxes (DT) including Income Tax of Rs1538billion, Workers Welfare Fund of Rs16.947billion and Capital Value Tax (CVT) of Rs2.297billion in the federal capital’s jurisdiction.
The Inland Revenues (IR), comprising of Income Tax, GST and FED, are facing revenue shortfall during the current fiscal year while collection on account of Customs Duty (CD) largely remained on track in the first eight months, so it was decided to revise upward customs target up to Rs 28billion.
The FBR is facing shortfall on account of GST collection mainly at domestic stage and some more efforts are required to increase tax collection on both GST and Income Tax fronts.
Despite bringing reforms at Customs side, the FBR’s collection showed positive results on this account, so it proved that reduction in rate of duty can result in boosting revenue collection.
