ISLAMABAD, June 5: The government has estimated the annual revenue collection at Rs452.5 billion for 2002-03 against the downward revised target of Rs458.9 billion set for the same period this year, according to Economic Survey of Pakistan 2002-03.

The government has already revised downward the budgetary target from Rs460.6 billion to Rs458.9 billion following the withdrawal of general sales tax on pharmaceuticals.

The tax authorities collected Rs390 billion during the July- May period of the current financial year. CBR will have to collect Rs62.5 billion this month to achieve the revised target.

Elaborating the revenue performance, the survey says during the July-April period of the current financial year the sales tax collected from domestic economic activity grew by 29 per cent showing increased economic activity in the country.

The higher level of economic activity is also reflected by increased demand for imported goods, including raw materials for consumer and capital goods. The report further says the sales tax collection at import stage shows an increase of 18 per cent.

The collection on account of customs duty stood at Rs53 billion on net basis during the July-April period. The collection has registered an increase of 59.4 per cent, despite the fact that the maximum duty was slashed from 30 per cent to 25 per cent, duty rates on over 2500 tariff lines were reduced and the rupee was appreciated by 3.8 per cent in first 10 months.

The report says the average duty rates on total imports as well as dutiable imports have fallen to as low as 9.1 per cent and 15.6 per cent respectively this year.

The over all tax collection increased by 15 per cent during the period under review. This increase has largely come from sales tax and customs duty. The income tax collection on net basis stood at Rs109.5 billion, which is only one per cent higher than last year.

This showed that no tangible growth was registered in the collection of income tax during the first 10 months of the current financial year.