May 01, 2007	Tuesday	Rabi-us-Sani 13, 1428

ISLAMABAD, April 30: Revenue collection rose to Rs646.882 billion in 10 months (July-April) period of the current fiscal year as against the target of Rs645.2 billion set for the same period, an increase of 0.26 per cent.

The revenue collection recorded a cumulative growth of 18 per cent, when compared with the collection of Rs546.979 billion netted during the same period last year.

On a monthly basis, provisional collection of federal taxes stood at Rs50 billion in April as against the target of Rs65.4 billion set for the same month, leaving a shortfall of Rs15.4 billion.

The CBR had raised Rs57.157 billion during the same month last year, which means less collection of Rs7 billion in April.

In the provisional figures released here on Monday, the CBR claimed that revenue collection might witness an upward growth in the next few weeks when revenue figures of income tax would be finalised.

The cushion available with the CBR for bridging the steady decline in collection of customs duty and general sales tax (GST) is also depleting, as unlike past months, the growth in overall revenue collection over the target is now below one percentage point in July-April period of the current fiscal year.

Analysts said the next two months — May-June – will be the crucial months for the CBR to generate Rs188.118 billion in reaching the overall target of Rs835 billion.

They said tax officials will have to take extra efforts for generating revenue rather than to adopt the old tactics of withholding due refunds or take advance taxes from leading taxpayers.

Tax-wise break-up showed that revenue on account of direct taxes showed an increase of 24 per cent by collecting Rs249.3 billion as against the target of Rs200.5 billion set for the same period.

Growth in direct taxes was more than 48 per cent during the period under review when compared with the Rs167.6 billion revenue realisation during the same period last year.

It is this unexpected growth in income tax, which enables the CBR reaching the overall target set for the same period.

The sales tax collection remained short of the target by Rs25.6 billion as collection reached Rs242.7 billion during the 10 months period of the current fiscal year as against the target of Rs268.3 billion set for the same period.

However, sales tax collection recorded a marginal increase of 6.2 per cent during the period under review when compared with Rs228.5 billion collected during the same period last year.

Revenue collection under the head of customs reached Rs101.4 billion in July-April period of the current fiscal year as against the target of Rs122.1 billion set for the same period, leaving a shortfall of Rs21.3 billion.

The customs duty even declined by 3.9 per cent during the period under review as against Rs105.5 billion collected during the same period last year.

The collection under the head of federal excise duty reached Rs53.5 billion during the period under review as against the target of Rs54.3 billion, indicating a negative growth of 1.47 per cent. However, FED recorded 17.8 per cent growth in July-April period as against Rs45.375 billion revenue collected during the same period last year.