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FBR reduces cost of revenue collection from 0.74pc to 0.71pc

FBR reduces cost of revenue collection from 0.74pc to 0.71pc

ISLAMABAD: Federal Board of Revenue (FBR) successfully reduced cost of the revenue collection from 0.74% to 0.71% by managing healthy growth in the tax collection, it is learnt here.

Official sources told Customs Today that in Pakistan, the cost of collection in year 2007-08 was 0.89% where it was reduced to 0.83% in years 2008-09 while cost of collection in Pakistan was recorded at 0.87% in years 2009-10, sources added. It was remained at 0.89% and 0.74% in the last eight years.

Sources added that expenditure of FBR is also going down with the passage of time and it is a good omen that expenditure of the revenue body in the country has reduced in the last two years.

Moreover, the cost of collection is practically small in the country as compared to many developing countries; however, lack of logistics, inadequate infrastructure, and insufficient investment in human resource development are the key elements hindering further growth in revenues, sources added.

It is important to mention here that the cost of collection is the expenditure incurred on collection of federal taxes relative to federal tax receipts.

Despite the occurrence of discrete bases of expenditures and revenue, it is broadly regarded as an important factor for gauging the efficiency of revenue collecting body.