ISLAMABAD: Federal Board of Revenue (FBR) reported that the basic reasons for the revenue shortfall of Rs184 billion during 2017-18 were excessive refund adjustments, government intervention in power production (IPPs),decrease in federal excise duty (FED) on natural gas, payments of sales tax refunds and declining revenue from banking sector.
Official sources told Customs Today, that suspension of Intelligence and Investigation Inland Revenue (I&I-IR) powers and reduced rates of withholding taxes on telecom companies also were the main cause in the shortfall of revenue collection during previous year.
Sources further told that FBR new policy initiatives for increasing collection trapped in appeals; reinstatement of SROs relating Intelligence & Investigation wing; expansion of broadening of tax base network; disposal of huge audit pendency; further enhancement of revenue collection through own efforts; enhanced role of ADRC; relocation of work load and outreach to district level for better facilitation.
It is important to mention here that FBR has collected net Rs3,751 billion during 2017-18 against the revised target of Rs3,935 billion, facing a shortfall of Rs184 billion.
