KARACHI, Oct 22: The Sindh government raised Rs2.7 billion from infrastructure cess on imports during the first quarter (July-September) of the current fiscal year compared to Rs1.1 billion it collected in the same quarter last year, showing a hefty increase of over 145 per cent.

The collection did not include Rs578.9 million deposited in the form of bank guarantees during the quarter under review by importers against payment of infrastructure cess under a court order.

The massive jump in infrastructure cess collection, which is the major contributor to the revenue of the ministry of excise and taxation, was attributed to its higher rate which was revised up to 0.75 per cent of the f.o.b. from 0.25 per cent.

The total revenue collection of the ministry during the July-September period rose by 67 per cent at Rs3.7 billion against Rs2.2 billion in the same quarter last year.

However, the collection from motor vehicle registration dropped by Rs18 million to Rs530 million in the quarter as against the Rs548 million in the same quarter last year. The decline was due to drastic fall in number of vehicles registered during the period under review.

Revenue from excise registered a modest rise to Rs379.1 million from Rs375.7 million in the corresponding period last year. The poor performance was due to Ramazan when liquor import permits were not issued.

The professional tax collection stood at Rs90 million during July-September 2008-09 as against Rs88.5 million in the same quarter last year.

The ministry collected Rs39.84 million under hotel tax head against Rs37.5 million it raised in the same quarter last year.

Director General Excise and Taxation Asif Marghoub Siddiqui told Dawn that the increase in revenue collection was due to strict monitoring of tax compliance. Besides, he added that efforts had been made to plug in leakages of infrastructure cess through under-invoicing of goods.