KARACHI, July 30: The Sales Tax Collectorates, East and West, Karachi, collected Rs31.357 billion during last fiscal ending June 30, 2002, compared to Rs28.107 billion a year ago. The ST collection registered 11.56 per cent increase.

According to the official figures made available here on Tuesday, except a fall of 5.02 per cent in revenue collection in June 2002, all the other months ended with rise between 1.07 per cent and 29.89 per cent.

Despite the fact that both the collectorates closed the last fiscal by recording little over 11 per cent growth in ST collection, the Collectorate of East being the largest unit of the sales tax regime alone netted Rs24.713 billion as against Rs22.125 billion a year ago, showing an increase of 11.77 per cent.

The Collectorate of East registered rise in revenue collection during first eleven months, except June 2002, when the growth was negative by 5.02 per cent. The highest growth of 48.63 per cent was recorded during May, followed by March at 29.89 per cent.

On the other hand, the Collectorate of West collected Rs6.644 billion as against Rs5.982 billion recorded in the fiscal 2000-01, a rise of 11.07 per cent.

Official sources said the Sept 11 incident followed by war in Afghanistan during the second quarter of last fiscal resulted in lesser revenue collection.

As a result of this development the Collectorate of West during the second quarter (2001-02) recorded negative growth between 7 and 14 per cent. Whereas the highest fall of 14.02 per cent was recorded in October 2001, the biggest rise in revenue collection was noted at 63.59 per cent in June.

Nevertheless, after clubbing of collection of both the collectorates not only collective and final figures of the entire fiscal year move up, but even each month collection shifted to the positive columns.

However, sources said that there had been lesser number of persons getting themselves registered with the sales tax department which also had negative impact on the revenue collection.

The most unfortunate part of the entire sales tax regime is the defective refund system, which results in huge payment of fake claims through ‘flying invoices’ and other means. The official records indicate that the CBR collects less in sales tax but distributes more towards refund claims.