February 16, 2003	Sunday	Zul Hijjah 14, 1423

ISLAMABAD, Feb 15: The collection of domestic sales tax from 10 major revenue spinners have registered 13 per cent growth during the first half year of the current financial year over the corresponding period of last year indicating a growth in economic activities in the country.

Official report compiled by the Central Board of Revenue (CBR) showed that the 10 commodity groups have contributed nearly 69 per cent of total domestic sales tax collection during the same period this year.

The statistics indicates that on the whole, the collection from these revenue spinners has grown by 13.3 per cent over the period under consideration. However, in comparison, the remaining sectors have grown at a higher space of 21.6 per cent to register an overall growth of 15.7 per cent in the first half year.

Further break-up of the major items showed that sales tax collection registered a growth of 23.7 per cent from POL products; 59.9 per cent from electrical energy; 22.5 per cent from cigarettes; 19.5 per cent from aerated waters/beverages; 21.1 per cent from cotton not carded not combed; 7.3 per cent from Sugar.

A decline of 16.5 per cent was registered in collection of sales tax from cotton yarn during the first half year of the current financial year over the corresponding period.

The report says the decline in revenue from yarn was mainly due to lower prevailing market price of cotton yarn, which was discouraging suppliers and resultantly the stocks were piling up with the manufacturers.

The negative growth in collection from cement in the months of September, October and December has been more than compensated by a positive growth in the remaining three months.

The report says that despite a negative growth of 5.4 per cent in cement during the second quarter, the sales tax collection from cement has recorded a positive growth of 5.6 per cent during the firs half year this year over the corresponding period of last year.

Similarly, the sales tax collection from services declined by 13.9 per cent during the same period under review and 10.4 negative growth registered in revenue collection from Natural gas.