Sales tax collection from sugar sector has shown a decrease of 22.4 percent during 2010-2011 against the corresponding period of last fiscal year. An FBR report released here on Monday revealed that the sales tax collection at local stage was limited to few items in 2010-2011 which is evident from the fact that the petroleum products and telecommunication sector contributed more than 3/5th of the total sales tax domestic collection during this period.
The collection of sales tax has been highly concentrated in some commodities. This is confirmed by the fact that only petroleum products and telecom sector contribute more than 3/5th of the total sales tax domestic. Major ten commodities contribute 89.3 percent of the total net sales tax from domestic.
Petroleum has been the top revenue generation source of sales tax domestic and contributed around 47.2 percent of the total sales tax domestic during 2010-11. Its collection grew by 31.9 percent. The effective rate of petroleum products has increased from 6.3 percent 2009-10 to 7.1 percent in 2010-11 has vastly increased the collection. Besides, 36 percent decline in the payments of refunds has also contributed in the improved growth.
The collection from telecom sector has exhibited significant growth of around 18 percent mainly due to increased effective rate to 19.3 percent during 2010-11 as compared to 17.5 percent during 2009-10. As far as natural gas is concerned; the gross collection has grown by 27.8 percent but due to higher payments of refunds, the growth in net collection reduced to only 2.1 percent.
The services excluding telecom sector is the fourth major revenue generation source of sales tax domestic. Its collection grew by 23.0 percent during 2010-11 due to increased effective rate during 2010-11. The collection of electrical energy has improved its collection by 38.8 percent despite increase of 39.2 percent higher growth in the refund payments. The major reason for this scenario is the increased taxable sales and increased effective tax rates during 2011-12.
The collection of cigarettes grew by only 5.4 percent during 2010-11. The growth seems below the expectation, as the rate of FED was also revised upward in the Budget 2010-11. On the other hand, the production grew marginally which is also one of the reasons for low growth. The collection from beverages has gone up by 19.4 percent is attributable to increased effective rates and lesser input adjustment of 9 percent during 2010-11. The collection realised from sugar has come down by 22.4 percent mainly due to increased input output ratio from 17 percent in 2009-10 to 31.1percent during 2010-11. The revenue fetched from tea reflected 19 percent growth due to improvement in the taxable sales by 18.3 percent during 2010-11. On the other hand, cement has reflected a growth of 22.6 percent in the collection of sales tax domestic due to increased taxable sales by 11.6 percent and lower refunds payments.
Comments
Comments are closed.