ISLAMABAD - Federal Board of Revenue (FBR) chairman Mumtaz Haider Rizvi on Friday ruled out the possibility of imposing any new tax in remaining months of the ongoing financial year and vowed to control tax evasion in order to reach the annual tax collection target of Rs 1,952 billion.
“The tax collection target is doable but a difficult one, as I have only four and half months to meet the challenging target”, said Mumtaz Haider Rizvi, chairman fbr , in an exclusive chat with The Nation on Friday.
He dismissed the possibility of imposing any additional tax in remaining months (March-June) of the current financial year 2011-2012 to reach the revenue collection target , as had happened in the last fiscal year 2010-2011 when the government imposed new taxes of Rs 53 billion on March 15 through Presidential ordinance. “Economic situation is not that supportive for any new tax”, he maintained.
It is worth mentioning here that fbr has collected Rs 973 billion during the first seven months (July-January) of the ongoing financial year while it has to further collect Rs 979 billion in the remaining five months (February-June) in order to meet the target of Rs 1,952 billion. The State Bank of Pakistan (SBP) and International Monetary Fund (IMF) in their recent reports projected that tax collection target is challenging one to achieve. The IMF in its latest country report under Article IV consultation states that the FBR’s envisaged target of Rs1952 billion seems a challenging task and proposed to the authorities to take additional revenues measures to achieve the desired results
However, chairman fbr believed that tax department would achieve the target by the end of June 2012 by controlling the tax evasion in the country. “We have to broaden the tax base by bringing non taxpayers into the tax net”, said Mumtaz Haider Rizvi. He added that we could not put additional taxation burden on the already tax paying masses.
Meanwhile, sources told The Nation that Mumtaz Haider Rizvi expressed displeasure over the process of broadening the tax base in board-in-council meeting of the department the other day, as less than Rs 600 million was collected in one year from those 700,000 non-taxpayers which were traced out by the government. On a question, he said that he would work to bring more and more non-taxpayers into the tax base in the remaining period of the ongoing financial year.