Revenue collection target for first quarter achieved

[Naveed Yaseen]

By Mubarak Zeb Khan
ISLAMABAD, Oct 6: The revenue collection rose 23.5 per cent during the first quarter (July-Sept) of 2007-08 over the same period last year, the Federal Board of Revenue said on Monday.

The growth achieved in the period under review reflects that the economy is still showing positive signs despite imposition of more than 50 per cent additional duty on import of food and luxury items.

The FBR raised Rs253.3 billion in the first quarter as against Rs205.13 billion it collected during the same period last year, showing an increase of Rs48.199 billion.

The revenue collection also surpassed the Rs250 billion target set for the same period.

The FBR said the collection for September 2008 was likely to improve further when it was finalised as the last date for the filing of income tax returns had already been extended to October 31 from September 30.

The government has increased the revenue collection target by 24.5 per cent to Rs1,251.46 billion for 2008-09 from last year’s revised target of Rs1,005 billion.

Tax-wise break up showed that the revenue collection under the head of income tax surged by 9.1 per cent at Rs84.566 billion during the July-Sept against Rs77.534 billion over the corresponding period of last year.

The sales tax collection reached Rs106.812 billion against Rs82.752 billion raised the same period last year, an increase of 29.1 per cent.

The collection of sales tax on domestic sales increased by more than 50 per cent showing that the highest ever inflation has helped the government to raise maximum revenue from consumers. While ST collection on imported goods grew by 17.1pc, which indicates that additional customs duty has not restricted imports.

Statistics showed that the collection of federal excise duty rose by 49.9 per cent to Rs23.799 billion during the first quarter as against Rs15.876 billion last year.

Customs duty collection up by 31.7 per cent to Rs38.158 billion as against Rs28.976 billion collected the same period last year. This also indicates the uninterrupted flow of goods into the country putting severe pressure on the balance of payments.

The FBR paid out Rs14.1 billion in refund/rebate claims to taxpayers during the July-September period as against Rs10.4 billion in the corresponding period last year, showing an increase of 35.5 per cent.

http://www.dawn.com/2008/10/07/ebr5.htm