KARACHI, Oct 17: The Income Tax Department (Southern region) has collected Rs8.2 billion in direct taxes during July-September 2001, registering an eight per cent fall over the corresponding period last year, official sources said here on Wednesday.

However, a spokesman of the department told Dawn that actual revenue during first quarter was higher, if amounts of wealth tax and income tax realized through amnesty scheme were excluded from the previous year’s collection of Rs8.9 billion.

He said that last year’s collection also included income tax amount of Rs888 million and wealth tax Rs70 million realized through amnesty scheme.

The official said if Rs958 million is deducted from the total collection in first quarter of last year, the figure comes down to Rs7.95 billion, 5 per cent lower than Rs8.2 billion for July-September 2001.

The IT collection continued to be heavily dependent on withholding tax, as over 80 per cent of collection came through Section 50, of the Income Tax Ordinance. During the period under review, Rs7.682 billion had been collected through deduction at source.

However, there is a growing concern among tax collectors about the poor performance of the economy which has further deteriorated after the Sept 11 attacks on US.

“Our task to achieve ambitious revenue targets have almost become next to impossible as the country’s external trade has suffered a lot in the aftermath of Sept 11 incident,” the tax official said.

The first quarter collection of present fiscal could have been even better if the last date (Sept 30) for filing of returns did not fall on weekly holiday (Sunday). As a result of this the last date for filing of return was extended to Oct 1, which falls in second quarter, therefore, all revenue collection made along with returns on this date will be included in next quarter collection.

Collection of income tax at import stage under withholding tax regime declined to Rs4.317 billion during current quarter as against Rs4.487 billion collected in the same period last year.

The wealth tax, which had been abolished but collection on account of arrears, settlements and out of pending appeals and assessment came to Rs16.7 million. Last year collection of wealth tax in the same period stood at Rs70 million. The Capital Value Tax (CVT) also declined to Rs16.710 million during present quarter from Rs19.438 million in the corresponding period last year.