July 15, 2006	Saturday	Jumadi-ul-Sani 18, 1427

KARACHI, July 14: The revenue collection by Large Taxpayers Unit (LTU) Karachi for the FY06 ending June 30, 2006 showed an increase of 19pc at Rs42.2bn compared to Rs35.5bn collected in FY05.

Official sources on Friday told Dawn that the higher economic growth and rapid industrial and commercial activities helped improve revenue collection. The LTU also surpassed the target of Rs41.5bn set for the FY06, which was higher by 18pc over previous year’s collection.

The LTU is mostly dealing with big clients (taxpayers) and is operating on functional basis rather than old system where a tax collector simultaneously works as assessing officer, auditor and even final authority.

However, the gross revenue collection of the LTU for FY06 stood at Rs55.363bn and after deducting refunds and adjustments of around Rs13.291bn the net collection stood at Rs42.2bn.

The LTU under CBR drive maximised payments of refunds and disbursed around Rs5.774bn in cash and Rs7.517bn towards adjustments, thereby, took total payments to Rs13.291bn.

However, highest collection came from income tax at Rs42.831 billion as against Rs36.239bn recorded in FY05. Income tax realised out of arrear demand rose by 129pc at Rs2.342bn from Rs1.024bn a year ago. However, revenue collection out of current demand declined by 59pc at Rs2.478bn from Rs6.050bn recorded in FY05.

The LTU collected Rs7.419bn from deduction at source, thereby, took total collection on account of income tax to Rs50.250bn.

It is encouraging that collection of revenue on account of stock exchange commission under Section 233(A) scrambled by 511pc to Rs66.197m from Rs10.837m in FY05. Similarly, there was increase of 66pc on income tax collected on dividends at Rs261.617m from Rs158.056m a year ago.

A fabulous increase of 564pc was recorded in revenue collection on account of Capital Value Tax on stock exchange at Rs13.807m from Rs2.080m collected during FY05. The collection of revenue on account of Workers Welfare Fund (WWF) also rose by 29pc at Rs4.827bn from Rs3.728bn previous year. This also strongly supported the theory that there had been higher industrial growth and activity in the country.

Above all there was rising confidence in government’s economic policies and analysts firmly believed that if consistency was maintained and industrial and fiscal policies there would be sustained economic growth.