ISLAMABAD, July 2: Revenue collection increased to Rs840.6 billion during the outgoing fiscal year 2006-07, which is up by 17.8 per cent from 2005-06’s collection of Rs713.4 billion.

According to provisional figures released on Monday, direct taxes recorded an unprecedented growth of 46 per cent, and came to the rescue of the tax department in achieving the overall tax collection target of Rs835 billion set for the outgoing fiscal year.

Two other leading indirect taxes — customs and sales tax — even remained short of the downward revised target indicating a dismal performance during the year under review.

The officials said it was because of decline in dutiable imports.

It was revealed that revenue collection under the head of direct taxes reached Rs329.7 billion, which is even higher by Rs11.7 billion from the upwardly revised target of Rs318 billion.

The share of direct taxes reached 39 per cent during the outgoing fiscal year 2006-07 as against 30 per cent in the previous year.

This will be the first year in country’s history that income and corporate have become leading tax earners, which is a positive development.

Oil and gas, banking and telecom sectors maintained a vibrant growth which emerged as leading revenue spinners for direct taxes and indirect taxes.

The sales tax collection remained short of the downward revised target by Rs2.205 billion as revenue raised under this head reached Rs308.795 billion during 2006-07 as against the downward revised target of Rs311 billion set for the same period. However, it recorded a growth of 4.7 per cent over last year’s collection of Rs294.799 billion.

The FBR attributed the decline in growth of sales tax to negative growth in imports.

It was projected that during the outgoing fiscal year, overall imports and dutiable imports will grow by 15pc. However, the growth recorded in imports was only nine per cent in total imports and a decline in dutiable imports by four per cent.The sales tax at the domestic stage was affected by extra payment of refund to power and textile sectors, which were withheld in the previous year.

The customs duty collection also remained short of target by Rs1.884 billion as it reached Rs132.116 billion as against the downward revised target of Rs134 billion during the outgoing fiscal year. However, the customs duty collection also recorded a negative growth of 4.5 per cent during the year under review in comparison with last year’s collection of Rs156.815 billion.

The same reasons were quoted for the decline under this head, which were made responsible for the low growth in sales tax collection.

The federal excise duty has reached Rs70.021 billion during the outgoing fiscal year as against the upward revised target of Rs72 billion, indicating a shortfall of Rs1.979 billion. However, the excise duty recorded a hefty growth of 26.7 per cent during the year as against Rs55.273 billion collected during the same period last year.