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CBR expects quantum leap in revenue this fiscal

JAVED MEHMOOD

ISLAMABAD: The high-ups of the Central Board of Revenue (CBR) are estimating a giant leap of over Rs 100 billion in the tax revenue during the financial year 2000-2001 due to proposed expansion in the tax net, it was learnt.

This estimate is based on the advice of Chief Executive Pervez Musharraf to bring into tax net the large number of evaders and to explore the hidden potential of tax revenue.

Regional teams are being set-up in the next few days that would comb 13 major cities to discover concealed tax potential, to widen the tax net and to re-evaluate immovable properties, sources said.

Five teams in each city comprising officials of the sales tax, income tax, wealth tax, district administration, army personnel and police, would reassess the value of immovable commercial and other properties, scrutinise turnover of traders, their utility bills and also identify the non-tax filers during the survey.

Sources said the CBR has recently informed the high-ups that the widening of tax base can ensure required revenue from the resources available.

Meanwhile, on the basis of expansion in the tax net and discovery of concealed tax potential the revenue collection target for the next fiscal might be fixed around Rs 450 billion against the current target of Rs 356 billion, sources said.

During the past many years the International Monetary Fund (IMF) had been asking Pakistan to expand the tax base by identifying the non-tax filers in order to overcome fiscal deficit.

The deposed government also proposed a plan to discover the concealed tax potential during last fiscal year, but it could not be initiated due to lack of interest.