Revenue body hopes to achieve tax-to-GDP ratio of 13-15pc in 5 years

The Federal Board of Revenue (FBR) hopes to achieve the tax-to-GDP ratio of 13-15 per cent during the next five years against the existing level of 8.0 per cent under the already initiated Tax Administration Reforms Programme (TARP), reveals the content of a letter written by the revenue body chairman to the finance secretary.

Despite Pakistanís exceedingly unfavorable macroeconomic situation, the revenue body is committed to meet the revenue collection target of Rs1,380 billion by achieving a growth of 19.3 per cent, as compared to the previous fiscal year.

Most of top corporate bodies did not file tax returns

ISLAMABAD: With the exception of five sectors, less than half of the top corporate entities in the country have filed income tax returns during the first half of the current financial year.
Only 24 per cent of those which have filed returns have declared income and the remaining 76 per cent have made no contribution to the federal revenue, says the quarterly report of the Federal Board of Revenue (FBR).

A majority of companies listed among the 20 major corporate entities in different sectors have either declared loss or no income.

Sales Tax collection on sugar falls 5.3pc

ISLAMABAD: Tax authorities have found that sales tax collection on sugar has declined by 5.3 per cent in the first eight months (July-Feb period) of the 2009-10 fiscal as it stood at Rs6.956 billion compared with Rs7.346 billion in the same period of the previous fiscal, it is learnt.

The declining trend has raised many eyebrows in the tax-collecting agency as every one knew the fact that the FBR has given extraordinary relaxations to sugar tycoons by reducing the rate to 8 per cent and fixed the price of sugar at Rs28 a kg for the purpose of deducting sales tax.

Exemption to construction sector may go under VAT

ISLAMABAD: Higher taxation is expected on the steel and construction sector after the implementation of Value Added Tax as all exemptions would be withdrawn under the new regime.
A study paper prepared by the Federal Board of Revenue (FBR) over the success of VAT said there is a special regime for steel sector except for PSM, HMC and Peoples Steel.

Industry fears VAT to affect tax collection

KARACHI: The industry fears that introduction of Value Added Tax (VAT) at this stage may disrupt growth in tax collection, and it may even prove counter-productive.

It is being argued that presently economy was not in a position to afford new jitters through experiments.

The industry feels that instead of introducing a new tax law, the scope of existing law be extended to untapped sectors.