ISLAMABAD, Nov 1: The revenue collection in October 2006 remained short of the target by 11.4 per cent at Rs49.6 billion as against the proposed target of Rs56 billion. Provisional figures released here on Wednesday showed that the revenue collection achieved a nominal growth of 0.86 per cent when compared with the revenue realisation of Rs49.175 during the same month last year.

However, the shortfall in revenue was attributed to narrow base of the indirect taxes particularly the unprecedented decline in the customs duty collection despite the fact that the imports had registered massive growth during the period under review. The revenue received with the income tax returns this year was also to be adjusted in the coming months.

In absolute term, the revenue realisation during the July-Oct of 2006 increased by 18 per cent to Rs237.364 billion as against Rs201.231 billion collected during the same period last year.

This showed that the level of growth was also constantly on decline from 23 per cent to 18 per cent. This would be a challenge for the CBR to arrest this constant decline for reaching the target of Rs835 billion projected for the fiscal year 2006-07.

Revenue collection on account of direct taxes showed an increase of 34.3 per cent to Rs79.6 billion during the July-Oct 2006 against Rs59.3 billion the same period last year.

The sales tax collection reached to Rs98.4 billion during the four months as against Rs86.6 billion the corresponding period last year, a rise of 13.6pc.

The tax receipts on account of excise duties recorded an increase of 28.8 per cent to Rs21.7 billion during the period against Rs16.9 billion in the corresponding period last year.

The revenue from customs duties decreased by 2.3 per cent to Rs37.6 billion during July-Oct as against Rs38.5 billion the same period last year.