Rs 95 billion amassed against Rs 50 billion direct tax: first half indirect tax collection soars
March, 05th 2014
The rise in indirect tax collection in the first six months of the current year in comparison with the comparable period of last year is nearly double the increase in direct tax collection - Rs 95 billion as opposed to Rs 50billion. Analysis of the consolidated fiscal operation for the first six months recently released by the Finance Ministry reveals that there has been a considerable increase in revenue collection from taxes on goods and services during the first six months of the current fiscal year as compared to the same period last year.
Tax collection of Rs 541 billion on goods and services during July-December 2013 rose by Rs 95 billion over Rs 446 billion for the same period of last fiscal year. Sales tax collection on goods and services of Rs 481 billion in the current fiscal year rose by Rs 89 billion from Rs 392 billion last year. The revenue collection from excise duty after a marginal increase of Rs 7 billion stood at Rs 60 billion in the current fiscal year as compared to Rs 53 billion a year ago.
The revenue collection through direct taxes increased from Rs 331 billion during the first six months of last fiscal year to Rs 381 billion in the comparable period this year, showing an increase of Rs 50 billion - one third that of witnessed in the rise in indirect tax collections. Additionally, the government revenue through mark-up on Public Sector Enterprises (PSEs) and others increased to Rs 58.448 billion during the period under review from Rs 4.467 billion a year ago. Dividend increased to Rs 28 billion from Rs 21 billion during the same period of last fiscal year. An official said around 80 percent projected non-tax revenue, excluding sale of 3G licenses and Coalition Support Fund (CSF), materialised during the first six months.
The total non-tax revenue collection was projected at Rs 812 billion and Rs 636 billion if Rs 120 billion estimated on account of 3G licenses and the $600 million disbursement by the US under the CSF were excluded. Thus non-tax revenue receipt of Rs 512 billion amounts to 80 percent of the budgeted amount for the current fiscal year and has helped contain fiscal deficit to 2.1 percent.