According to a tax revenue policy paper approved by the government recently, the revenue target for 2010-11 will be fixed at Rs1.71 trillion against current fiscal year’s Rs1.38 trillion.
However, the Federal Board of Revenue cited certain factors like improper implementation of value-added tax from July 1 as probable hurdles in achieving the ambitious revenue target.
According to the finance ministry, the government’s losses in terms of subsidies would gradually decline after restructuring of eight public sector enterprises, while their dividends receipts will go up.
The government will increase excise duty on a number of services like banking and insurance, withholding tax on imports, excise duty on cigarettes and introduce capital value tax on real estate to boost revenue collection.
The government has planned to phase out exemptions and bring services sector under the tax net to boost revenue collections.
The finance ministry has set a collection target of Rs135 billion petroleum development levy in the next fiscal year and Rs145 billion by 2012-13.
According to the ministry’s estimates, non-tax receipts of the federal government will rise to Rs495 billion in the next fiscal year.
The non-tax revenues are income from government property and enterprises, including profits, interest receipts and dividends from the government’s investments, receipts from civil administration, State Bank profits and other miscellaneous receipts like royalties, passport fees, etc.
The ministry was expecting foreign budgetary grants of around Rs40 billion annually for next three years.
Apart from increase in revenue collection, the share of provinces in the divisible pool will also go up with the implementation of National Finance Commission award. Transfers to provinces will increase from Rs662 billion to Rs1.04 trillion in the next fiscal year.
Source: http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/the-newspaper/front-page/13+plan-to-set-revenue-target-at-rs2.47tr-630-za-01
0 comments:
Post a Comment