ISLAMABAD: The government has imposed additional duties on petroleum products and furnace oil to meet its Rs2,691 billion revenue target.
According to finance ministry, the Economic Coordination Committee (ECC) of Cabinet, on a Federal Board of Revenue (FBR) proposal, has allowed levy of 2 percent regulatory duty on petroleum crude oil, motor spirit oil and furnace oil.
“Both regulatory duties would be levied with effect from June 1. The step is aimed at getting over some of the revenue losses due to persistent fall in petroleum prices in the current financial year,” it said.
FBR is struggling to achieve the revised tax collection target of Rs2,691 billion fixed for the ongoing financial year. The FBR accumulated Rs1,975 billion in 10 months (July to April) of the current fiscal year of 2014-2015. The board has to collect Rs716 billion during remaining two months (May and June).
The FBR collected Rs200 billion in April, which is 17 percent higher than the collection made in the same month of the previous year when the government had collected Rs170 billion.
The government has already revised the annual revenue collection target to Rs2,691 billion from budgetary target of Rs2,810 billion due to the continuous failure of the tax department to meet its targets. The government even imposed new taxes and duties to generate additional revenue for achieving the revised target.
