LAHORE, Oct 18: The tax collection figures provided by the Central Board of Revenue are routinely exaggerated to claim achievement of targets set in the annual budget, it is learnt.

Sources in the Ministry of Finance said the figures were inflated to show that the donor agencies’ conditionalities for qualifying for various kinds of assistance had been met to the extent of revenue generation from local sources. Most of the manoeuvring relates to the industrial regions.

Two prominent industrialists told this reporter Income Tax, Sales Tax and Customs officials collected extra amounts from them — and other taxpayers — before June 30. The amount was refunded in July or August, they added.

The industrialists said tax officials usually delayed refund of their dues in last months of the financial year until after books were closed and the accounts opened for the next fiscal. As a result, sources said, heavy withdrawals by tax collection agencies were reported from the State Bank during the months of July, August and September.

According to the figures made available to this reporter, the Lahore sales tax collectorate paid Rs916.01 million as Sales Tax refunds in July this year compared with Rs701.61 million in July 2000, and Rs440.21 million in July 1999.

Likewise, the collectorate paid Rs1,216.94 million as ST refund in August 2001, compared with Rs540.07 million in August 2000, and Rs425.67 million in August 1999.

The withdrawals drop down to about Rs300 million during the remaining months, the sources said. During June 2000, the collectorate paid just Rs81.28 and in June 1999, Rs 161.86 million, they added.

The Faisalabad Sales Tax Collectorate paid Rs588.084 million as ST refund in July 2001 against Rs384.882 million in July 2000. It refunded Rs713.073 million in August 2001, against Rs350.110 million in August 2000.

The Lahore Sales Tax Directorate additional director denied any manoeuvring of the figures. He said requests for refund piled up in a routine in the directorate and there was no intention to influence the figures.

He said the directorate was now considering introduction of a new rule requiring the officers to dispose of the cases referred to them within a specified period. The additional director said the proposed introduction of automation would also check any abnormalities in patterns of payment and refund.