Tax Concessions to Generate Economic Activity in Pakistan
Pakistan Times Business & Commerce Desk

ISLAMABAD: Chairman Central Board of Revenue Muhammad Abdullah Yusuf Tuesday said that various concessions announced by the government in the Budget 2004-05 would certainly generate economic activity and consequently the CBR would be able to achieve the tax collection target of Rs.580 billion in the financial year.

He stated this while presiding over the conference of Collectors of Customs here on Tuesday. The conference was held to review the performance of various collectorates of customs for the year 2003-2004 and to evolve a strategy to accelerate the process of revenue collection.

Lauds Customs Set-up

In his opening remarks, Chairman CBR lauded the achievements made by Customs Collectorates regarding revenue collection in the fiscal year 2003-2004.

But, he said, “we must not become complacent of these achievements and continue to make our efforts as the revenue collection target, fixed for current financial year 2004-2005, was progressive and challenging”.

Abdullah Yusuf said that the basic requirement was that the national economy must move forward, and added, 6.4% growth rate, achieved in last fiscal year, was the highest since last many years and reflective of successful economic policies followed by the government.

Revenue Collections

Commenting on the record revenue collection, the Chairman said that although it seems high but it was still not in commensurate with the required GDP-Tax ratio.

“We have to improve this ratio by increasing tax collection and broadening the tax base”, he added.

Referring to various tax concessions announced in the Budget, Abdullah Yusuf observed that these measures would certainly generate economic activity and consequently CBR would be able to achieve tax collection target or Rs. 580 billion for 2004-05.

Reforms Process

Talking about the reforms process, currently underway in CBR, the Chairman said that it was need of the time to bring positive change in the taxation system to make life easier for taxpayers.

“It should be the system which must deal with the problems not the individuals”, he remarked.

While reviewing the performance of the Customs Collectorates, major points came under consideration were revenue collection during 2003-2004 targets for 2004-2005, recovery of arrears, disposable cases under adjudication, anti-smuggling measures, over stayed consignments in bonds, detection involving under invoicing, misdeclaration and transit, transshipments, exports, refunds and rebates.

Member Customs Briefs

Earlier, Member [Customs] Muhammad Ramzan Bhatti, in his introductory remarks, informed that the revenue collections by Pakistan customs in last financial year 2003-2004 were beyond the target.

He said that total revenue collected by customs stood at Rs. 242.746 which was 47.14% of total tax collection of Rs. 515 billion in 2003-2004.

The conference was attended, among others, by all the relevant Members of CBR, Director General customs intelligence.●