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CBR July-Feb collection hits Rs513.6 billion
ISLAMABAD (updated on: March 10, 2007, 19:36 PST): Central Board of Revenue (CBR) has collected Rs. 513.6 billion in the first eight months registering a growth of 22.5 percent of the current financial year as compared to Rs. 419.3 billion in the same period last year.
The collected amount is also Rs. 19 billion more than the target set for the first eight months, Secretary General, Revenue Division and Chairman, CBR, M. Abdullah Yusuf stated this while briefing the Senate Standing Committee on Finance, Revenue, Economic Affairs & Statistics on performance of CBR for the current financial year (2006-07). Senator Ahmed Ali, Chairman of the Committee, presided over the meeting.
Giving details of improvement in voluntary compliance in July-December 2006, as compared to the corresponding period of 2005, the chairman said that CBR has achieved a growth of 19 percent in a number of returns filed (1.5 million vs 1.3 million), 94 percent in payments with returns (Rs.45 billion v/s Rs.23 billion) and a growth of 131 percent achieved in advance tax payments (Rs. 59 bn v/s Rs. 26 bn). He said that the number of returns filed as at now were 1.6 m which are growing at the rate of 20 percent per annum.
While giving an update on Tax Administration Reforms Programme (TARP), CBR Chairman informed the committee that the steps taken under this programme have already yielded encouraging results.
The steps included successful implementation of Universal Self- Assessment Scheme (USAS) across all taxes, simplification and improvement in laws of income tax, federal excise, customs and sales tax.
He said that the CBR Headquarters, Income Tax structure, Audit and Inspection, Training, Intelligence and Valuation Directorates have been transformed and started working on functional lines. Sales Tax system was already operating on functional lines, he added.
Regarding establishment of model units under TARP, the secretary general, revenue division informed the committee that two out of three Large Taxpayers Units (LTUs) have already been established in Karachi and Lahore.
Third LTU is under construction in Islamabad and it will start working by June, this year. Besides, six Medium Taxpayers Units (MTUs) have been established in major cities of the country. Similarly, four out of 13 Regional Tax Offices (RTOs) have started operations. Moreover, Model Customs Collectorates (MCCs) have been operating since 2004.
On current status of initiatives, M. Abdullah Yusuf told the Committee that after extensive business process re-engineering, the pilot project `Pakistan Customs Computerised System (PaCCS)' has been launched. This automated system has reduced the average cargo clearance time from five days to four hours for imports and to one hour for exports.
PaCCS operations have now been extended from KICT to QICT and PICT, Karachi. It is hoped that this system would not only save the time of importers/exporters but also considerably reduce the cost of doing business, he added.
On Income Tax and Sales Tax side, Tax Management System (TMS) and Sales Tax Management (STMS) have been introduced in model units which will eventually be taken over by Integrated Tax Management System (ITMS) to ensure international standards. He said, e-filing of tax returns across taxes have already been started.
Yusuf informed that CBR has developed a computerised system of Tax Payment Receipts (CPR) in collaboration with National Bank of Pakistan and State Bank of Pakistan which has been endorsed by the ministry of finance, AGPR and CGA. Now all information regarding CBR staff are available through the newly developed system of Human Resource Information System (HRIS).
Chairman said that CBR was paying special attention to the capacity building and welfare of its employees. In this connection, he mentioned the training, internal job posting, special emphasis on integrity management and performance related pay and promotions and employees' welfare programme.
Abdullah Yusuf was of the opinion that CBR was a key financial institution of the country because it collects 90 percent of the total revenue of the country, contributes in tax plus non-tax revenue around 65 percent and covers nearly 50 percent of the federal government's expenditure needs.
Talking about the challenges and constraints faced by CBR, the secretary general mentioned low Tax-to-GDP ratio, mismatch in sectoral contribution to GDP and taxes, low level of compliance, wide-ranging tax and duty exemptions and large underground and informal economy. He, however, expressed his resolve to deal with all the issues through an efficient, fair and equitable system.
He said that CBR will continue to be critical institution of the state for smooth economic management and promoting economic growth.
Commenting on the performance of CBR, Senator Ahmed Ali, Chairman of the Senate Standing Committee, congratulated Abdullah Yusuf on successful implementation of Customs Administrative Reforms (CARE).
"I must congratulate you. You are doing the job pretty well."
Senator Prof. Khurshid Ahmed, member of the Committee, also congratulated CBR chairman for bringing considerable improvement in CBR in last few years. He said CBR's reforms direction was correct. He, however, said that CBR needs to take steps to check tax evasion and expand tax base.
Senator Safdar Abbasi and Pari Gul Agha also lauded the personal efforts of Abdullah Yusuf in bringing a visible improvement in CBR's performance and enhancing revenue collection. Legislators, however, were of the opinion that 15 percent GST needs to be revised downwardly.
While thanking the legislators for appreciating the performance of CBR, Abdullah Yusuf gave its credit to the present government for taking practical steps including initiation of Tax Administration Reforms Programme for upgrading and improving the taxation system to enable the Board to play its due role in rapid economic development of the country.
Copyright APP (Associated Press of Pakistan), 2007
CBR July-Feb collection hits Rs513.6 billion
ISLAMABAD (updated on: March 10, 2007, 19:36 PST): Central Board of Revenue (CBR) has collected Rs. 513.6 billion in the first eight months registering a growth of 22.5 percent of the current financial year as compared to Rs. 419.3 billion in the same period last year.
The collected amount is also Rs. 19 billion more than the target set for the first eight months, Secretary General, Revenue Division and Chairman, CBR, M. Abdullah Yusuf stated this while briefing the Senate Standing Committee on Finance, Revenue, Economic Affairs & Statistics on performance of CBR for the current financial year (2006-07). Senator Ahmed Ali, Chairman of the Committee, presided over the meeting.
Giving details of improvement in voluntary compliance in July-December 2006, as compared to the corresponding period of 2005, the chairman said that CBR has achieved a growth of 19 percent in a number of returns filed (1.5 million vs 1.3 million), 94 percent in payments with returns (Rs.45 billion v/s Rs.23 billion) and a growth of 131 percent achieved in advance tax payments (Rs. 59 bn v/s Rs. 26 bn). He said that the number of returns filed as at now were 1.6 m which are growing at the rate of 20 percent per annum.
While giving an update on Tax Administration Reforms Programme (TARP), CBR Chairman informed the committee that the steps taken under this programme have already yielded encouraging results.
The steps included successful implementation of Universal Self- Assessment Scheme (USAS) across all taxes, simplification and improvement in laws of income tax, federal excise, customs and sales tax.
He said that the CBR Headquarters, Income Tax structure, Audit and Inspection, Training, Intelligence and Valuation Directorates have been transformed and started working on functional lines. Sales Tax system was already operating on functional lines, he added.
Regarding establishment of model units under TARP, the secretary general, revenue division informed the committee that two out of three Large Taxpayers Units (LTUs) have already been established in Karachi and Lahore.
Third LTU is under construction in Islamabad and it will start working by June, this year. Besides, six Medium Taxpayers Units (MTUs) have been established in major cities of the country. Similarly, four out of 13 Regional Tax Offices (RTOs) have started operations. Moreover, Model Customs Collectorates (MCCs) have been operating since 2004.
On current status of initiatives, M. Abdullah Yusuf told the Committee that after extensive business process re-engineering, the pilot project `Pakistan Customs Computerised System (PaCCS)' has been launched. This automated system has reduced the average cargo clearance time from five days to four hours for imports and to one hour for exports.
PaCCS operations have now been extended from KICT to QICT and PICT, Karachi. It is hoped that this system would not only save the time of importers/exporters but also considerably reduce the cost of doing business, he added.
On Income Tax and Sales Tax side, Tax Management System (TMS) and Sales Tax Management (STMS) have been introduced in model units which will eventually be taken over by Integrated Tax Management System (ITMS) to ensure international standards. He said, e-filing of tax returns across taxes have already been started.
Yusuf informed that CBR has developed a computerised system of Tax Payment Receipts (CPR) in collaboration with National Bank of Pakistan and State Bank of Pakistan which has been endorsed by the ministry of finance, AGPR and CGA. Now all information regarding CBR staff are available through the newly developed system of Human Resource Information System (HRIS).
Chairman said that CBR was paying special attention to the capacity building and welfare of its employees. In this connection, he mentioned the training, internal job posting, special emphasis on integrity management and performance related pay and promotions and employees' welfare programme.
Abdullah Yusuf was of the opinion that CBR was a key financial institution of the country because it collects 90 percent of the total revenue of the country, contributes in tax plus non-tax revenue around 65 percent and covers nearly 50 percent of the federal government's expenditure needs.
Talking about the challenges and constraints faced by CBR, the secretary general mentioned low Tax-to-GDP ratio, mismatch in sectoral contribution to GDP and taxes, low level of compliance, wide-ranging tax and duty exemptions and large underground and informal economy. He, however, expressed his resolve to deal with all the issues through an efficient, fair and equitable system.
He said that CBR will continue to be critical institution of the state for smooth economic management and promoting economic growth.
Commenting on the performance of CBR, Senator Ahmed Ali, Chairman of the Senate Standing Committee, congratulated Abdullah Yusuf on successful implementation of Customs Administrative Reforms (CARE).
"I must congratulate you. You are doing the job pretty well."
Senator Prof. Khurshid Ahmed, member of the Committee, also congratulated CBR chairman for bringing considerable improvement in CBR in last few years. He said CBR's reforms direction was correct. He, however, said that CBR needs to take steps to check tax evasion and expand tax base.
Senator Safdar Abbasi and Pari Gul Agha also lauded the personal efforts of Abdullah Yusuf in bringing a visible improvement in CBR's performance and enhancing revenue collection. Legislators, however, were of the opinion that 15 percent GST needs to be revised downwardly.
While thanking the legislators for appreciating the performance of CBR, Abdullah Yusuf gave its credit to the present government for taking practical steps including initiation of Tax Administration Reforms Programme for upgrading and improving the taxation system to enable the Board to play its due role in rapid economic development of the country.
Copyright APP (Associated Press of Pakistan), 2007
