ISLAMABAD - The Federal Board of Revenue (FBR) Monday announced yet another tax amnesty scheme to waive off additional tax penalties and fines of those who will pay their pending taxes fully by June 30 in order to generate additional revenue to reach the revised revenue collection target of the outgoing fiscal year.

The FBR, which is struggling to achieve the revised revenue collection, has issued a notification on Monday to waive off the whole amount of default surcharge, penalties and other surcharge on account of non-payment of any outstanding dues and taxes subject to the condition that principal amount of duty and taxes in paid by June 30.

However, this benefit is not available to fraudulent refunds, drawback cases or any other duty/tax fraud where prosecution proceedings have been initiated.

It might be mentioned here that FBR has already announced two tax amnesty schemes, one for regularising the non customs paid vehicles and second for textile sector to clear their past sales tax liabilities, to generate additional revenue within ongoing fiscal year to reach the annual tax collection target. This is third amnesty scheme, to waive off additional tax penalties and fines of those who will pay their pending taxes fully by June 30, in one fiscal year by FBR.

However, despite these measures, FBR is struggling to achieve the revenue collection target during the ongoing financial year 2012-13. The FBR has twice revised the revenue collection target during the ongoing financial year 2012-13 due to poor performance of the tax department.

The budgetary target of Rs 2,381 billion was revised downward to Rs 2,191 billion for 2012-13. The FBR’s target has been further slashed to Rs 2,050 billion. However, the FBR is unlikely to achieve the twice-revised target and it is expected that government might collect Rs 2000 billion by the end of June 2013.

FBR has accumulated Rs 1682 billion during eleven months (July-May) of the outgoing fiscal year 2012-13. The FBR has to collect Rs 368 billion in thirty days of June to meet the target of Rs 2050 billion.

 Therefore, the FBR has given an opportunity to taxpayers to waive off additional tax penalties and fines of those who will pay their pending taxes fully by June 30 in order to generate additional revenue to reach the revised revenue collection target of the outgoing fiscal year.