ISLAMABAD - Taking serious notice of the fall in revenue collection in nine months (July 2012 to March 2013), Federal Board of Revenue (FBR) Chairman Ansar Javed on Monday directed that remedial strategies be made to ensure collection of the assigned targets for the last quarter ending June 30, 2013.

FBR Chairman Ansar Javed, after assuming charge on April 10, has started hectic consultation with stakeholders. The FBR chairman has taken serious note of the fall in revenue and started marathon meetings within FBR. The performance of each LTU and RTO is examined, and the Chief Commissioners are directed to devolve strategies to achieve the freshly assigned budget targets. He has directed Member (IR-Ops) to immediately issue letters to all the RTOs and LTUs highlighting their performance and achievements/shortfalls, and has directed that remedial strategies be made to ensure collection of the assigned targets for the last quarter ending 30th June, 2013.

The Federal Board of Revenue is struggling to achieve the revenue collection target during the ongoing fiscal year 2012-2013. The FBR has to collect Rs 782 billion during the last quarter (April-June) of the current fiscal year to meet the revised target of Rs 2,126 billion, which is challenging for the tax department at a time when the general elections are around the corner.

The FBR has provisionally collected Rs 1,344 billion during the nine months (July-March) of the present financial year 2012-2013 as against Rs 1,260 billion in the corresponding period of the last year, showing an increase of 6.7 percent, well below the 23.7% increase needed to meet the budget targets.

It is worth mentioning here that the FBR has twice revised the revenue collection target during the ongoing financial year 2012-2013 due to poor performance of the tax department. Earlier, the FBR revised the budgetary revenue target to Rs 2,231 billion from Rs 2,381 billion for the current fiscal year, showing a shortfall of Rs 150 billion. Later, the FBR further revised the tax collection target to Rs.2126 billion during the ongoing fiscal year 2012-2013.

However, the economic experts are of the view that tax department is unlikely to achieve the twice revised target during the present financial year.

FBR recently 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. FBR has generated Rs 16 billion through amnesty scheme announced for vehicles, which are brought into the country without payment of custom duty, to legalize the smuggled vehicles by paying nominal duty.

Similarly, textile units have availed the amnesty scheme and deposited over Rs 3 billion to the national kitty. However, despite these measures, FBR is struggling to achieve the revenue collection target during the ongoing financial year 2012-2013 due to poor performance of the tax department.