ISLAMABAD, June 9: The government on Saturday increased the revenue collection target by 22.37 per cent to Rs1,025 billion for the fiscal year 2007-08, as compared to the one for 2006-07 which was Rs837.61 billion.

Budget estimates for 2007-08 released on Saturday showed that the government had projected Rs405 billion under the head of direct taxes as against the revised target of Rs320.61 billion for 2006-07, an increase of 27.3 per cent.

The collection under the head of indirect taxes -— customs, sales tax and central excise -— on commodities and transactions increased by 19.9 per cent to Rs620 billion for the fiscal year 2007-08 as against the revised target of Rs517 billion for 2006-07.

The tax-wise break-up of direct taxes showed that the government had fixed Rs388 billion to be collected under the head of income tax as against Rs257.8 billion set for the fiscal year 2006-07, showing an increase of 50.5 per cent.

The income tax collection has been revised upwards to Rs305 billion. With this upward revision, the government has projected an increase of 27.2 per cent over the revised target set for this year.

The government has fixed a target of Rs17 billion to be collected under other taxes of the direct taxes head as against the revised target of Rs13 billion for 2006-07, indicating an increase of 30.7 per cent.

The customs collection target was cut by 1.91 per cent to Rs154 billion for the fiscal year 2007-08 as against the target of Rs157.1 billion for 2006-07. The customs duty collection for 2006-07 has been revised downwards to Rs134 billion.

The collection under the head of sales tax was increased by 9.97 per cent to Rs375 billion for 2007-08 as against Rs341.6 billion set for 2006-07. The sales tax target was revised to Rs311 billion because of a shortfall. A growth of 20.5 per cent has been projected over the revised target of sales tax in the budget.

The federal excise collection has been projected at Rs91 billion as compared to Rs68.1 billion this year, showing an increase of Rs33.6 billion.

The federal excise target for 2006-07 has been revised upwards to Rs72 billion.

With the upward revision, a growth of 26.38 per cent has been projected over the revised target.