ISLAMABAD Having no plan B for flood tax as compared to RGST alternated already by one percent increase in GST, the failure in imposition of flood surcharge would cost the Government more in terms of revenue loss. The Government seems to have failed to introduce Reform General Sales Tax (RGST) and flood surcharge from the start of new year. The Government would suffer more in term of revenue generation in failure of flood tax as compared to RGST, which already had plan B. The Government had already adopted plan B for RGST in the annual budget 2010-11 by increasing the GST rate by 1 %. The plan B is likely to generate same amount of revenue, as expected from the RGST. Due to one percent increase in GST, the Government is likely to generate additional revenue of Rs35 billion during the ongoing financial year while in case of RGST it could be around Rs40 billion, a government official told The Nation on the condition of anonymity. Therefore, he said, non-imposition of RGST is not a big issue for the Government in term of revenue generation for the ongoing fiscal year, as plan B had worked for them. However, the problem for the Government at present is to find alternative plan for the flood tax, as the Government was expecting to generate Rs40 billion in the six-month period, which could bring the Government close to the annual tax target of Rs1667 billion. The tax collection target is presently revised to Rs1604 billion for 2010-11 from Rs1667 billion fixed in the budget 2010-11. Therefore, the Government is mulling plan B for flood tax and increase in special excise duty. Another official sources in Federal Board of Revenue said that the Government was considering several options including withdrawal of tax exemptions given to several sectors, which might help increase the revenue. It is worth mentioning here that the Government had delayed the introduction of RGST and other revenue generation measures due to resistance of majority of the political parties in Parliament. The sources were of the view that the Government might introduce RGST in the next annual budget 2011-12.