LAHORE: Continuous decrease in petroleum prices can create hurdles for the Federal Board of Revenue to meet the Rs 2810 billion target for fiscal year 2014-15, an official told Customs Today.
He also said a big chunk of revenue was collected from the petroleum sector. He said that falling petroleum prices in the international market would impact the revenue generation in Pakistan. He added petrol prices have been decreased almost Rs 34 per litre and the government is likely to give more relief to the people in February.
The Oil and Gas Regulatory Authority has sent a summary regarding a reduction in POL prices up to Rs 14.85 per litre, while Rs 10.75 reduction is expected.
A source at LTU Lahore said that Pak-Arab Refinery Limited was a major contributor to tax collection. He said almost 55 percent of the revenue of the LTU Lahore was generated from PARCO. He added that cuts in oil prices had affected the revenue target of LTU Lahore during first and second quarters.
The FBR has set the Rs 2,810 billion target for 2014-15 fiscal year, while it had collected Rs 2,275 million during last fiscal year 2013-14. The department needs 25 percent growth to meet the target.
As per statistics, the FBR has faced Rs 60 billion shortfall during the first half of the current fiscal year. The FBR had set a revenue collection target of Rs 1,230 billion for the first half of the current fiscal year; however, it could only collect Rs 1,171 billion. The FBR has to collect Rs 1639 billion during the second half of the current fiscal year.
A tax expert said that the FBR should concentrate on new sources to get revenue and to meet the target. He added that unfriendly policies could create hurdles in revenue generation. He said the government was likely to revise the revenue target.
Finance Minister Ishaq Dar has conveyed his message to all heads of LTUs and RTOs that the set target would not be revised downward at any cost.
