ISLAMABAD, March 19: The federal tax collection in Rawalpindi and Islamabad grew at an average of 10.8 per cent despite the low growth of economy during financial year 1995-96 and 2000-01.

Official figures available with Dawn revealed that the tax receipts in the twin cities has increased 11 per cent in the financial year 2000-01.

In absolute figures it increased from Rs26.44 billion in the financial year 1995-96 to Rs46.042 billion during 1999-2000, depicting an increase of 74.13 per cent.

Official sources said that in the next years, the revenue under the head of customs and central excise duty (CED) would register a decrease, however, the revenue under the head of sales tax and income tax would increase.

Due to withdrawal of CED and its conversion into sales tax would result in low collection.

Similarly, the revenue under the head of customs duty would also register a decline due to lowering of the duty on importable goods, which would finally drop to zero in the next two to three years.

Tax-wise break-up in the twin cities showed that central excise duty (CED) collection has increased by 16.18 per cent from Rs13.88 billion in 1995-96 to Rs16.12 billion in the financial year 1999-2000.

And the average share of CED in the total collection across the country increased from 26.4 per cent in 1995-96 to 28.8 per cent in 1999-2000.

The revenue under the head of sales tax increased from Rs3.072 billion during 1995-96 to Rs7.67 billion in the year 1999-2000, an increase of 149.67 per cent.

The net share of sales tax in the total tax collection increased from 6.2 per cent in 1995-96 to 6.6 per cent in the year 1999-2000.

The revenue collected under the head of customs duty increased from Rs1.90 billion in 1995-96 to Rs2.22 billion in 1999-2000, an increase of 16.39 per cent.

And the average share of customs duty in the total collection increased from 2.1 per cent in 1995-96 to 3.6 per cent in 1999-2000.

On the other hand, the income tax collection in Rawalpindi rose from Rs1.88 billion in 1995-96 to Rs3.1 billion in the year 1999-2000, thus an increase of 64.45 per cent, while the average share of income tax in the total income tax collection increased from 2.5 per cent in 1995-96 to 2.9 per cent in 1999-2000.

And the income tax collection in Islamabad increased from Rs5.69 billion in the year 1995-96 to Rs16.92 billion in the year 1999-2000, an increase of 197.22 per cent.

The net share of income tax in Islamabad, however, increased from 7.6 per cent in 1995-96 to 13.4 per cent in 1999-2000.