ISLAMABAD, June 2: The collection of general sales tax (GST) from cement, fertilizer, iron and steel products declined drastically during the first nine months (July-March) of the current fiscal year, over the corresponding period last year. An official report compiled by the Central Board of Revenue further showed that low growth in realization of GST was observed from other two major spinners of GST — sugar and cigarettes — during the period under review, over the same period last year.
According to the report, a copy of which was available with Dawn, the CBR raised around 70 per cent of the total GST collected on domestic stage from 10 major revenue spinners — services (essentially telephone and fax), POL products, electrical energy, natural gas, sugar, cotton yarn, cigarettes, cement, fertilizer, and iron and steel products.
The collection of GST from cement declined by 19.5 per cent during the July-March period to Rs2.494 billion, as against Rs3.096 billion collected during the same period last year; collection from fertilizer decreased by 15.6 per cent to Rs2.411bn against Rs2.855bn; and collection from iron and steel products lowered by 12.8pc to Rs1.822 billion against Rs2.088bn last year.
The collection of GST from sugar registered a growth of 1.2 per cent only during nine months of the current fiscal year to Rs6.079 billion against Rs6.009 billion last year. The collection from cigarettes registered a growth of 2.2 per cent only and stood at Rs3.727 billion as against Rs3.646 billion.
However, the GST collection at domestic stage from services (including telephone/fax, etc) increased by 54.9 per cent; POL products (including petroleum and lubricating oils) 7.1 per cent; electrical energy 6.5 per cent; natural gas 10.2 per cent; and cotton yarn 213.9 per cent. The report says the low collection from cigarettes has been due to the withdrawal of further tax that has provided a bonanza for cigarette distributors.
