FBR 134bRs behind the tax collection target after seven months

[Kabira]

FBR 134bRs behind the tax collection target after seven months
Reported by: `saqib mahmood January 31, 2015

ISLAMABAD: Government is struggling to achieve its annual revenue collection target of Rs 2.8 trillion, as the tax collection shortfall reached to Rs 134 billion during seven months (July-January) of the ongoing fiscal year 2014-15.

The Federal Board of Revenue (FBR) has provisionally collected Rs 1336 billion during July-January of FY 2014-15 as against the target of Rs 1470 billion for the said period leaving shortfall at Rs 134 billion. However, the collection has shown growth of 13 percent if compared with the collection made in same period of previous Fiscal Year when FBR had collected Rs1185 billion.

Meanwhile, the FBR has faced massive shortfall of Rs 40 billion only in the month of January 2015. The government has collected Rs 170 billion as against the target of Rs 210 billion.

The PML-N government had set Rs 2810 billion revenue collection target for the current Fiscal Year, which seems difficult to achieve keeping in view the so far performance of the tax department. The International Monetary Fund (IMF) had already estimated that government would collect Rs 2756 billion by the end of June 2015. The government is continuously blaming the declining oil prices for lower revenue collection. The government had estimated that due to a reduction in the international oil prices would result in estimated revenue shortfall of Rs 68 billion during year 2014-15. Therefore, the FBR had increased the General Sales Tax on petroleum products by five percent to 22 percent to generate additional revenue. The move would result in generating Rs 17.5 billion for the national kitty before June 30 2015. Sources in Finance Ministry informed The Nation that Pakistan could face tough time from IMF during ongoing talks for the sixth review holding in Dubai over the performance of the Federal Board of Revenue.

FBR 134bRs behind the tax collection target after seven months | Customs Today

Can FBR collect Rs 2.6 trillion?

 

[Gufi]

tax agricultural products for land lords.... but most of the law makers in Punjab are agriculturists so we can not do that
Ensure tax collection and proper evaluation... but then the politicians would be screwed
tax the middle class more... Ureka problem solved

 

[ali_raza]

tax agricultural products for land lords.... but most of the law makers in Punjab are agriculturists so we can not do that
Ensure tax collection and proper evaluation... but then the politicians would be screwed
tax the middle class more... Ureka problem solved

i know for the fact that agriculture is not profitable anymore.if u impose taxes.apart from few bad apples ur rural will collapse.

 

[BetterPakistan]

Can FBR collect Rs 2.6 trillion?

yeah, I hope it will collect Rs 2.6 trillion

 

[Gufi]

i know for the fact that agriculture is not profitable anymore.if u impose taxes.apart from few bad apples ur rural will collapse.

you need to understand how many agriculturists are in the Punjab assembly.. apparently it is quite profitable to many people..
Income Tax Calculator for Salaried Individuals in Pakistan
salaries versus earnings after year of crops... add a few lakh for costs and then tax the rest

 

[ali_raza]

you need to understand how many agriculturists are in the Punjab assembly.. apparently it is quite profitable to many people..
Income Tax Calculator for Salaried Individuals in Pakistan
salaries versus earnings after year of crops... add a few lakh for costs and then tax the rest

maybe 1000 all in total.u tex them individualy but across the board will destroy our very last hope.self reliance on food

 

[Shah01]

Vast majority of Pakistani farmers are very small farmers. These will be making ends meet. Some years they make money and other years they lose money. So for them farming is normally not profitable. On the other hand large farmers will make money and lots of it. These guys can afford expensive cars and what not. Farming is like a business and sometimes investment pays off other times it is a loss.
So reforms are needed in this area but it will need a very careful consideration to cater for the small farmers. Furthermore major cut of the profit goes to the middle men/stockists so tax need to be collected from these people. Simplify the tax and close any loopholes.

 

[Cheetah786]

i know for the fact that agriculture is not profitable anymore.if u impose taxes.apart from few bad apples ur rural will collapse.

L O L really how.

 

[Winchester]

tax agricultural products for land lords.... but most of the law makers in Punjab are agriculturists so we can not do that
Ensure tax collection and proper evaluation... but then the politicians would be screwed
tax the middle class more... Ureka problem solved

The salaried middle class is being taxed to death
The Tajir middle class is not even touched not surprising since they form the main support base of the ruling party

 

[Cheetah786]

Vast majority of Pakistani farmers are very small farmers. These will be making ends meet. Some years they make money and other years they lose money. So for them farming is normally not profitable. On the other hand large farmers will make money and lots of it. These guys can afford expensive cars and what not. Farming is like a business and sometimes investment pays off other times it is a loss.
So reforms are needed in this area but it will need a very careful consideration to cater for the small farmers. Furthermore major cut of the profit goes to the middle men/stockists so tax need to be collected from these people. Simplify the tax and close any loopholes.

Shah sahib its called income and expenses. you only pay tax if you make money.

 

[Shah01]

Shah sahib its called income and expenses. you only pat tax if you make money.

Yes I know the meaning and how income tax works. I am not even against taxation!
It is very easy to tax salaries as these are set amounts no matter what. People get their salaries even if the business losses money. In UK we pay 20%, 40%, 45% tax on salaries (this depends on the amount one earns. Higher one earns the more tax one pays). On top of this there is the national insurance charge paid by us all (To pay towards pensions and NHS). Then there is the VAT at 20% and fuel duty at £0.58.

As I said farming is similar to business. It does not have a set income. It can generate a profit or a loss. Not sure what are the rules in Pakistan but in UK if a business losses money one year it can use this loss and carry it to the next year and offset the profits and pay less tax (tax subsidy in other words).
For example if a small farmer makes a profit one year and pays tax of Rs100,000 and the following year farmer makes a loss of Rs100,000 then he will be out of pocket and may not be able to carry on with farming. So that is why I said careful consideration need to be given.