January 27, 2006	Friday	Zilhaj 26, 1426

KARACHI, Jan 26: The Medium Taxpayers Unit, Karachi, achieved 35 per cent growth in revenue collection to Rs10.364 billion during the first half of the fiscal year 2005-06 compared to Rs7.666 billion collected the same period last year.

The MTU has already achieved half of the Rs20.80 billon target given by the CBR for the current fiscal year.

The biggest chunk came from withholding tax, which is deducted at source. Collection under income tax increased by 28.17 per cent to Rs9.662 billion during the period under review as against Rs7.538 billion the same period last year.

Payment of refunds showed an increase of 29.42 per cent to Rs145.484 million compared to Rs112.490 million paid during the corresponding period last year.

The salaried class contributed Rs3.032 billion compared to Rs2.755 billion during the same period last year, showing an increase of 10.06 per cent.

MTU Commissioner Income Tax Muhammad Anwar Goraya told Dawn that the unit managed to increase taxpayers’ population by 36 per cent at 277,581 from 204,036 in a short period of one year. However, he said that the highest growth was in the salaried class that witnessed an increase of 33.5 per cent at 235,277 from 176,241.

The commissioner said that the number of non-salaried class stood at 42,304 and added that besides geographical jurisdiction the MTU had also categorized taxpayers like money changers, developers and contractors, property dealers, transporters and professionals including doctors, tax consultants, charter accountants etc.

Giving other details, he said that income out of bank interest rose by 147.46 per cent from Rs408 million to Rs1.011 billion. This was mainly due to higher interest rates witnessed during the current fiscal.

As the activity on the development and construction sector gaining momentum the revenue collection also rose by 102.56 per cent to Rs1.451 billion from Rs716 million the same period last year. Similarly, income tax from exports stood higher at Rs2.503 billion or 34.96 per cent compared to Rs1.855 billion.

However, there was a 2.82 per cent fall in revenue collected along with electric bills at Rs441 million compared to Rs453 million of last year. Collection on dividend income also declined by 19.90 per cent to Rs6.410 million from Rs8.003 million in the same period last year.