February 7, 2003	Friday	Zul Hijjah 5,1423

PESHAWAR, Feb 6: The provincial government’s tax collection machinery kept showing dismal performance as at the close of the first half of the current financial year the province recorded a total collection of Rs16.5m under both the components of the land tax and agriculture income tax, according to the sources.

The recoveries made during the July-Dec period of the 2002-03 financial year make 33 per cent of the Rs50m target set for the current fiscal year under the two components of the land tax and agriculture income tax.

Not only that the achievement of the total annual target appears to be a very difficult task for the provincial tax collection machinery in view of the recoveries recorded during the first six months of the current fiscal year.

All the more, the dismal performance, conceded official sources, under the farm tax head had dashed the provincial finance managers hope of touching the growth rate the last provincial government had committed with the World Bank.

Growth in recoveries through land tax and agriculture income tax forms part of overall agreement the last provincial government had signed with the World Bank to obtain its Structural Adjustment Credit facility.

In its Medium Term Budgetary Framework (MTBF) - for a period of next three financial years inclusive of the 2002-03 financial year — the last military-backed civilian government in the province had committed to raise its revenue under the land tax and agriculture income tax by over 8 per cent during the 2003-04 financial year, by 13 per cent in the 2004-05 financial year and 13.7 per cent during the 2005-06 financial year.

However, the recoveries made during the first six months of the current financial year, said the sources, had overshadowed the provincial finance managers’ hopes to start showing improved results from the 2002-03 financial year.

Against the annual target of Rs50m set for the last financial year, i.e. 2001-02, the province had ended up with a total of Rs45.87m missing the target by over Rs4m.

“Achievement of the Rs50m target for the current financial year appears to be a remote possibility in view of the first half’s recovery position,” said a senior government functionary.