ISLAMABAD, Dec 24: The sales tax collection from three main items registered a negative growth during the first five months (July-November) of the current fiscal year, over the same period last year.

Official statistics available with Dawn showed that the sales tax collection from the paper and paperboard industry, cement industry and cigarette sector declined during the period under review, over the same period last year.

The collection from the paper and paperboard industry has shown a negative trend in respect of Lahore, Peshawar and Gujranwala collectorates. The sales tax collection declined by Rs6.931 million in the Lahore collectorate, Rs12 million in Peshawar and Rs1.67 million in Gujranwala during the period under review, over the same period last year.

Officials attribute the decline to higher input tax adjustment and abolishing of further tax during the budget 2004-05. The sales tax collection from the cigarette sector declined by 6.4 per cent during the first five months, over the same period last year.

The decrease was registered due to the collection from cigarette distributors. The officials attribute the shortfall mainly to abolishing of a three per cent further tax in the budget.

The sales tax collection from the cement sector declined by 11 per cent during the first five months of the current fiscal year. The officials said the decline was due to an increase in zero-rated supplies (exports) during the period under review. In the first five months, the export of cement stood at around Rs917.60 million.

Similarly, increased input tax adjustment claimed by cement manufacturers during the first five months of this fiscal year and abolishing of further tax in the budget were the other reasons for decline.