July-September telecom ST collection down 35.2 percent

Sales tax collection from telecommunication sector stood at Rs 6,415 million during July-September 2012-13 against Rs 9,899 million in same period last fiscal year, reflecting a major decline of 35.2 percent due to shifting of telecom services to Punjab during 2012-13. According to the FBR quarterly review issued here on Tuesday, sales tax collection from cigarettes showed a negative growth during the period under review.
Sales tax collection from cigarettes was Rs 2,053 million during July-September 2012-13 against Rs 2,146 million during July-September 2011-12, showing a decrease of 4.3 percent. The collection from petroleum products has recorded a growth of 2.7 percent as compared to collection of same period last year (Table 8). The telecommunication sector recorded a negative growth of 35.2 percent. This decline is attributable to the shifting of telecom services to Punjab in current fiscal.
The collection from natural gas has exhibited a robust growth of 56.6 percent due to increased taxable sales by 8 percent and nil refund payment during July-September, 2012 against Rs 1.3 billion during corresponding period last year. The collection from cement grew by 37.2 percent due to growth in taxable sales of cement by 20 percent. A decline of 4.3 percent in collection from cigarettes is attributable to decline in production of cigarettes by 3.4 percent.
The collection from services (other than telecom) indicated a decline as Punjab province has started collection from its services. The beverages industry has manifested a growth of 9.3 percent in the collection due to 23 percent growth in its production. As far as the collection of sales tax from sugar is concerned, its collection has reduced by 1.6 percent due to 9.3 percent growth in input adjustment. The collection of tea has decreased by around 30 percent due to increased input/output ratio and increased exempt sale.
The gross collection of sales tax (domestic) has been Rs 97.8 billion and net at Rs 85.6 billion respectively during July-September, 2012 showing growth of 5.6 percent in net collection. The sales tax collection from 10 major commodities continued to contribute a major proportion, ie, 79.2 percent, in overall sales tax domestic collection. These include petroleum, telecommunication, natural gas, sugar, fertilisers, cigarettes, beverages, cement and motor cars, the report added.