KARACHI, April 30: The Large Taxpayers Unit (LTU) has collected Rs19.991 billion sales tax during July-March of the current fiscal showing an incredible growth of 77 per cent over the corresponding period of last year when Rs11.271 billion were netted, official sources said.

Consequently, the LTU has almost achieved 90 per cent of the sales tax collection target set by the CBR at Rs22.427 billion for the three quarters. Looking at collection growth, the sources said, the Unit is definitely going to surpass the target for the current fiscal.

The Central Board of Revenue (CBR) has set up the Large Taxpayers Unit to facilitate those taxpayers who pay Rs25 million and above in taxes per annum. Funded by World Bank under a revamping programme of the CBR the LTU, Karachi is a pilot project of the country.

The objective of the LTU is to collect all category of taxes under one roof and presently all those business and industrial entities who qualify as large taxpayers pay their income tax, sales tax and central excise duty in this Unit.

Collection of sales tax at LTU during the period under review had been remarkable as it shows a robust growth of over 77 per cent. But it is more encouraging that the growth in collection during this period had been persistent particularly when every month has recorded a higher collection over the corresponding period last year.

All the revenue regions of the country has noted sudden change in the growth of different taxes during current fiscal. According to official sources there is a fall in income tax collection but sales tax has shown a remarkable growth in almost all the collection points of the CBR, including LTU.

During the first month (July 2002) of current fiscal the sales tax collection at LTU recorded a growth of over 116 per cent at Rs2.502 billion compared to Rs1.157 billion collected in the corresponding period last year.

The ST collection in January and February 2003, grew by 78 and 58 per cent on collecting Rs2.513 billion and Rs2.532 billion respectively. Last year collection for January stood at Rs1.409 billion and February at Rs1.601 billion.

The lowest growth of 34 per cent was recorded in March 2003, when most of the Oil Marketing Companies (OMCs) were busy in replenishing their stocks ahead of Iraq war, the sources said.

The collection of CED at LTU was also higher by 28.753pc during the three quarters of the current fiscal over the corresponding period last year.

The collection of CED up to March 2003, stood at Rs3.303 billion as against Rs2.566 billion recorded at the same time last year. It is even encouraging that collection of each month surpassed the target set by the CBR and as a result the over all growth up to March 2003, stood at 28.753 per cent over the corresponding period last year.