Federal tax collection grows by an impressive 20.7% (July-February 2008-09)

[LahoreEstate]

By Sajid Chaudhry

ISLAMABAD: Federal tax collection has recorded a double-digit growth of 20.7 percent during July-February (first eight months) period of current fiscal year 2008-09 with total collection at Rs 706.4 billion as compared with Rs 585 billion in same period of last fiscal year 2007-08.

Provisional figures released by Federal Board of Revenue (FBR) revealed that direct taxes collection amounted to Rs 260.335 billion during first eight months as compared with Rs 216.683 billion projecting an increase of 20.1 percent.

Indirect taxes collection growth has been recorded at 21 percent with total collection at Rs 446.129 billion as compared with Rs 368.699 billion during same period of last fiscal year.

General Sales Tax (GST) collection witnessed an increase of 24.3 percent, which amounted to Rs 283.430 billion in Jul-Feb period of this fiscal year as against the collection of Rs 228.061 billion in same period last fiscal year.

Federal Excise Duty (FED) collection in first eight months stood at Rs 69.738 billion as compared with Rs 54.016 billion collected during same period of last fiscal year projecting an increase of 29.1 percent.

Customs Duty collection during July-February period amounted to Rs 92.961 billion as against Rs 86.622 billion collected during same period last fiscal year registering an increase of just 7.3 percent.

Refunds and Rebates payments during July-February period stood at Rs 49.691 billion as compared with Rs 45.098 billion in same period last fiscal year showing an increase of 10.2 percent.

February 2009-February 2008: Total tax collection in February 2009 showed a negligible growth of 4.4 percent with total collection at Rs 72.985 billion as compared with Rs 72.766 billion during February 2008.

Direct taxes collection witnessed a decline of 0.1 percent with total collection at Rs 25 billion in February 2009 as against Rs 25.018 billion collected in February 2008.

General Sales Tax collection amounted to Rs 33.385 billion in February 2009 as compared with Rs 28.839 billion collected during February 2008 showing an increase of 15.8 percent.

Federal Excise Duty collection in February 2009 witnessed a growth of just 5.1 percent with total collection at Rs 8.1 billion as compared with Rs 7.71 billion in February 2008.

Customs Duty collection witnessed a major decline of 15.2 percent with total collection at Rs 9.5 billion in February 2009 as against the collection of Rs 11.199 billion in February 2008.

Tax collection that was fixed at Rs 1.250 trillion in budget and was revised upwards at Rs 1.360 trillion has now been revised downwards at Rs 1.30 trillion for 2008-09. Revenues were targeted to grow to 10.2 percent of the GDP, but expectation is there that due to economic slow down in the country total tax collection at targeted level tax-to-GDP ratio to remain at 10 percent of the GDP by end June 2009.

http://www.dailytimes.com.pk/default.asp...2009_pg5_1