ISLAMABAD: The Rs1.165 trillion revenue collection figure reported by Finance Minister Ishaq Dar during his press contradicted the Rs1.172 trillion figure reported by the Federal Board of Revenue (FBR) for the first half of the current fiscal year, showing a Rs7 billion gap between the figure reported by both the minister and the FBR.
It is to be noted that during a press conference held the other day, Finance Minister Ishaq Dar said that the FBR collected Rs1.165 trillion in taxes from July through December of fiscal year 2014-15, showing a growth of 13% over the previous year’s collection.
The finance minister claim during the press conference about the 2.4 percent budget deficit was based on Rs1.165 trillion final collection in the first half of the fiscal year.
If the figure reported by Finance Minister Dar is taken by, it is almost Rs7 billion less than the collection claimed by the FBR. On January 8, the FBR issued final collection figures for the first half. It has officially declared that the tax machinery collected Rs1.172 trillion in taxes. The FBR claimed 15% growth in collection.
Meanwhile, FBR spokesman Shahid Hussain Asad said that the FBR’s Rs1.172 trillion collection figure was based on data compiled by its Directorate of Research and Statistics.
The FBR fell behind its first half’s target of Rs1.246 trillion. The collection also fell short of the International Monetary Fund’s (IMF) determined conservative target of Rs1.195 trillion.
The parliament approved a Rs2.810-trillion target for the FBR. But the IMF is of the view that the FBR would not be able to collect more than Rs2.756 trillion. However, independent economists are of the view that the collection would be around Rs2.6 trillion despite taking additional revenue measures.
The government has increased sales tax on petroleum products to 22% from 17 percent with the aim the offset the shortfall in collection.
It is be not that at the end of fiscal year that ended on June 30, the FBR had reported that it collected Rs2.266 trillion in taxes. However, the SBP figures put actual collection at Rs2.257 trillion, depicting a gap of Rs9 billion.
