ISLAMABAD: Updated data compiled by Federal Board of Revenue has revealed that it has provisionally collected over Rs 214 billion during March 2014 against target of Rs 213.9 billion, reflecting an increase of Rs 100 million.
The provisional collection during March 2014 stood at over Rs 214 billion against Rs 182 billion in March 2013, showing an increase of 16 per cent. So far, the average monthly growth in revenue collection is also around 16 per cent in 2013-14.
The tax collection target of Rs 2,475 billion for current fiscal year was set by allowing growth of 21 per cent on the revised estimates of Rs 2,050 billion for fiscal year 2012-13. However, the actual collection stood at Rs 1,946 billion in 2012-13.
During 2013-14, the reason for low growth in customs collections was a decreasing trend of dutiable imports and an increased trend of duty-free imports. Low growth in federal excise duty collection was mainly due to low realisation from cigarette manufacturing and discontinuation of collection from telecom sector in the backdrop of imposition of sales tax by the provinces.
However, direct tax collections witnessed an exceptional growth of 23.5 per cent during March 2014. The creation of special Withholding Commissioners at the level of the field formations played an important role in improving withholding tax collections during this period. Action was initiated against textile and sugar mills which also contributed in improved collection during this period. A number of key policy measures taken by the tax authorities also standardised the tax rates and removed discrimination in the tax system.
