ISLAMABAD, May 1: The overall income tax collection stood at Rs124.913 billion during the last eight months of the current fiscal year as against Rs96.324 billion in the same period last year, showing an increase of 29.7 per cent.

Withholding tax (deduction at source) even after the introduction of the Universal Self Assessment Scheme (USAS) was the major contributor to the revenue generated through income tax during the period under review.

The CBR raised Rs80.613 billion under various heads of withholding tax during the July-Feb period this fiscal year as against Rs62.390 billion in the same period last year, an increase of 29.2 per cent.

It raised Rs24.494 billion from contracts during the July-Feb period this year as against Rs17.435 billion in the same period last year, an increase of 17.2 per cent; Rs17.328 billion from imports as against Rs16.024 billion, an increase of 8.1 per cent; Rs8.553 billion from salaries as against Rs7.299 billion, a rise of 17.2 per cent; Rs3.786 billion from banks as against Rs2.498 billion, an increase of 51.6 per cent; and Rs5.964 billion from exports as against Rs4.8 billion, an increase of 24.2 per cent.

The withholding tax collection from telephone rose by 46.1 per cent to Rs4.335 billion during the July-Feb period this year as against Rs2.966 billion in the same period last year. The collection from electricity bills surged by 11 per cent to Rs3.174 billion as against Rs2.859 billion; and Rs1.4 million from gas bills during the period under review as against no collection over the last year.

However, the collection of income tax on account of unearthing understated income declined by 1.5 per cent to Rs4.011 billion during eight months of the current fiscal year as against Rs4.07 billion in the same period last year.

Informed sources told Dawn that the decline in the head was recorded as the Central Board of Revenue failed to conduct any audit during the last two years of selected taxpayers who were hiding their real income. The CBR introduced the Universal Self Assessment Scheme in 2003-04 with a concept that it would be followed by a strong audit system.

According to the sources, in the first year of the scheme, a few taxpayers were selected for audit but later these cases were resolved on mutual consensus, while the entire income tax department was now just receiving tax returns from taxpayers which were all accepted without any objection.

The statistics showed the department received Rs50.797 billion under the USAS from taxpayers during the July-Feb ruary period of this fiscal year as against Rs37.820 billion in the same period last year, showing an increase of 34.3 per cent.

The sources said the increase in overall income tax collection was due to a massive increase in imports, raise in interest rates of banks and a surge in cellular phone connections.