The Federal Board of Revenue (FBR) has collected Rs 6.9 billion as special excise duty (SED) during July-March (2007-08) against target of Rs 8.7 billion, showing a shortfall of Rs 1.8 billion. According to FBR data released on Tuesday, one percent SED at import stage has been more effective as compared to one levied at domestic stage.
At import stage Rs 4.8 billion has been generated against the target of Rs 4.5 billion whereas only Rs 2.1 billion has been realised from FED domestic confirming that enforcement problems are serious as the collection is short of the target by about 52 percent.
The data also disclosed that six revenue spinners of Federal Excise Duty (FED) are cigarettes, cement, beverages, natural gas, POL products and services during July-March (2007-08). The combined share of these six items in total FED collection was 79 percent against 91 percent in the corresponding period last year.
This decline in share is because of the levy of one percent SED both at domestic and import stages that has captured around 11 percent of total FED collection. The highest growth of almost 162 percent has been registered in services, followed by cigarettes (8 percent), natural gas (2.9 percent) and beverages (0.6 percent). On the other hand, items like cement and POL have registered a negative growth of 4.3 percent and 34.2 percent respectively during the period under review.
The FBR pointed out that the introduction of FED on services like International Air Travel (IAT), Non-fund Services (NFS), franchise and insurance has been helpful in enhancing revenues substantially. The share of services has increased from 6.8 percent to 13.7 percent in the current fiscal.