KARACHI, Jan 16: The southern region collected Rs16.621 billion in direct taxes during July-December 2001, as against Rs18.707 billion netted in the same period last fiscal. As a result the revenue collection was down by Rs2.1 billion or 11.2 per cent over previous year, sources said on Wednesday.

A spokesman of the tax department told Dawn that Sept 11 incident had its toll over revenue collection as most of industrial as well as commercial activity was badly hampered during second quarter (Oct to Dec 2001) of the current fiscal.

The imports were lower and industrial activity slowed down during the second quarter, as the Afghan war was fought during the second quarter.

However, official sources said the revenue collection during July-Dec 2001, is not so poor as last year there was a hefty revenue collection on account of amnesty scheme.

Sources said last year’s collection also included income tax amount of Rs888 million and wealth tax Rs70 million realized through amnesty scheme.

The collection of income tax continues to be heavily dependent on deductions at source which is governed by Section 50 of the Income Tax Ordinance. During the period under review, Rs15.496 billion had been collected under withholding tax regime as against Rs15.893 billion in the same period last year.

It is encouraging to note that the department on creating demand as well as arrears netted higher revenue at Rs105.181 million during July-Dec 2001, as against Rs92.691 million in the corresponding period last year.

The income tax collection at import stage during period under review also declined to Rs8.325 billion from Rs8.660 billion in the same period last fiscal.

The wealth tax, which had been abolished but collection on account of arrears, settlements and out of pending appeals and assessments came to Rs37.719 million. Last year the collection of wealth tax in the same period stood at Rs353.656 million.

Nevertheless, revenue collection under Capital Value tax (CVT) rose by 19.6 per cent at Rs39.128 million from Rs32.722 million in the corresponding period last year. The collection under Workers Welfare Fund stood higher by 1.1 per cent at Rs72.216 million from Rs71.455 netted in the same period a year ago.