PESHAWAR, June 20: Tax collecting agencies of the NWFP government have narrowly missed the recovery targets of various provincial taxes in the outgoing fiscal year 2006-07.

Recovery breakdown given in the budget documents reflects that the government had assigned its tax collecting agencies with a target of Rs2458.65 million at the outset of the current fiscal year against various taxes.

The agencies, however, could collect Rs2417.740 million missing the target with a margin of Rs40.91 million in the outgoing fiscal year. The government is intending the recovery of Rs 3047.30 million against the same taxes in the next fiscal year 2007-08.

Assessment made on the bases of recovery position shows that apart from urban immovable property tax (UIP), land revenue, stamp duty and tobacco development cess, target for not a single provincial tax could be achieved during this period.

Tax-wise collection shows that the government had set a target of Rs 75 million for agriculture income tax, but recoveries during the outgoing fiscal year stood at Rs 70 million. Target under this head has been pitched at Rs 80.50 million for the next financial year.

Officials at the Board of Revenue, which collects such tax, attributes concessions given under agriculture policy by the government as the prime reason for lower than targeted recoveries in the said period.

Interestingly, the government had exempted five Marla residential houses of property tax, which had also been considered one of hindrances in widening the provincial tax base.

But the Excise and Taxation Department has achieved the recovery target and collected Rs 76.30 million under the UIP head. Next year’s target for the same tax is Rs 83.93 million.

A target of Rs 50 million had been given under transfer of property tax at the beginning of the current fiscal year; however, an amount of Rs 47 million could be recovered under this head. The government wants to generate an amount of Rs 53.47 million against the same tax in the next fiscal year.

The BoR has surpassed the recovery target for land revenue tax, as it collected Rs 420.93 million against the actual target of Rs 380 million. The recovery target under this head has been pitched at Rs 600 million for the next fiscal year.

The government recovered Rs 80 million as professional tax in the outgoing fiscal year against the total target of Rs 84 million. Target for the next fiscal year under this head has been set at Rs 93.26 million.

According to budget documents, a recovery of Rs 40 million could be made against the total target of Rs 45 million on account of Excise Duty (provincial) in the outgoing fiscal year. The target for this tax will remain unchanged in the next fiscal year.

Stamp duty has emerged as another potential provincial tax, as total Rs 350 million were recovered against the set target in the outgoing fiscal year. The government, in the next year’s budget, has announced upward revision in the ratio of stamp duty that is why overall recovery target has been increased to Rs 500 million for the next fiscal year.