NWFP sees 8pc annual growth in three years: Provincial taxes
By Intikhab Amir
PESHAWAR, Aug 15: The NWFP is looking for gradual increase in its revenue receipts through provincial taxes during the next three financial years at an annual eight per cent growth rate, according to official sources.
In its medium term budgetary framework (MTBF), the NWFP government has projected to improve the size of provincial taxes by around Rs500 million during the next three financial years.
The provincial finance managers have set a target to raise Rs1,623.9 million through provincial taxes during the financial year 2002-03.
Similarly, during the next three years, NWFP is expecting to improve its earnings through taxes with every passing year, setting Rs1,783.9 million for 2003-04, Rs1944.9 million for 2004-05, and Rs2116.8m for 2005-06.
However, the provincial government’s plan to improve its provincial taxes’ proceeds has been regarded as over-ambitious by the officials.
The MTBF suggests that the overall increase in the size of taxes proceeds would be registered by expanding the base of direct taxes and improving proceeds under the heads of indirect taxes.
The provincial government has projected to raise Rs490 million through direct taxes during the financial year 2002-03, Rs537.6 million in 2003-04, Rs596.9 million in 2004-05, and Rs657.5 million during 2005-06.
The government is expecting to improve its revenue under the head of agriculture income tax from the projected target of Rs55 million set for 2002-03 to Rs60 million in 2003-04, Rs69 million in 2004-05, and Rs80 million in 2005-06.
Rate adjustment under the head of land revenue for the provincial government has been projected to Rs234 million in 2002-03, Rs266 million in 2003-04, Rs296 million in 2004-05, and Rs326 million during the financial year 2005-06.
Whereas, under the receipt heads forming part of the indirect taxes, the NWFP government is anticipating marginal growth under the head of provincial excise and major increase under the heads of electricity duty (a provincial tax collected by Wapda from its consumers every month) and motor vehicle — especially through the registration of unregistered vehicles.
The MTBF suggests that electricity duty receipts would increase from Rs247 million in 2002-03 to Rs262 million in 2003-04, Rs278 million in 2004-05, and Rs294 million in 2005-06.
Besides, receipts through motor vehicle registration have been projected to increase from Rs522 million in 2002-03 to Rs599 million in 2003-04. The same has been projected to go up to Rs684 million in 2004-05 and Rs778 million in 2005-06.
However, the NWFP government does not see any improvement in its receipts under the head of stamp duty as proceeds under this head have been projected to remain static raising Rs200 million during the financial year 2002-03 to 2005-06.
