November 8, 2003	Saturday	Ramazan 12, 1424

ISLAMABAD, Nov 7: The collection of income tax through voluntary compliance and collection on demand registered a significant decrease during the first quarter of 2003, over the same period of last year.

Official report compiled by the Central Board of Revenue showed the payment of income tax through voluntary compliance following the introduction of universal self-assessment scheme declined by 29.4 per cent during the period under review, over the same period of last year.

Similarly, the collection on demand during the first quarter this year registered a decline of 20.4 per cent and its share in gross income tax receipts also fell to 4.4 per cent against 5.3 per cent during the same period of last year.

This showed the contribution of the tax officials in tapping more taxpayers to increase the revenue was not significant during the period under review.

The report further says that the tax deducted at sources on account of withholding taxes (WHT) has increased by 6.5 per cent during the first quarter of the current financial year, over the same period of last year.

During July and August, the growth in WHT was 11.8 per cent and 80.6 per cent, respectively. But it declined in September 2003 by 26 per cent.

Further break-up showed the share of five major withholding taxes, including contracts, securities, imports, salary and interest, declined from 77.2 per cent to 76.7 per cent.

The contribution of imports remained at 30.2 per cent followed by contracts of 23.9 per cent and salary 10.4 per cent. While the increase in WHT on imports by 9.4 per cent has been driven by the increase in total imports by four per cent and the nine per cent growth in WHT on exports was due to 11 per cent increase in the exports volume.

The collection from securities has increased by 34 per cent mainly due to rate stabilization and better monitoring, and 7.6 per cent increase in contracts was because of the over all improvement in economic conditions.