ISLAMABAD: Provincial taxes collection soared to Rs87 billion in June-December 2013-14 from Rs70 billion in the corresponding period of last year, reflecting the negligible increase against the existence of a huge potential of the provinces.
As per details, the issue came to light during a meeting of the provincial finance secretaries with the Federal Board of Revenue held to review the downward revision of federal revenue collection target to Rs2,345 billion from the budgeted Rs2,475 billion.
The meeting also discussed the fiscal performance of all the provincial governments in terms of revenue receipts and trends of current and development expenditures during the first seven months of the current financial year (2013-14).
A look on the statistics reveal that the Punjab’s tax collections increased to Rs45.046 billion during the first half of the current fiscal year as compared to Rs36 billion in the same period of last year. Major increase has been witnessed in collection of stamp duty from Rs5.4 billion to Rs6.4 billion. The collection of property tax stood at Rs4.4 billion during this period as compared to Rs3.4 billion in the corresponding period last year.
Sindh tax collections increased to Rs36 billion during the first half of 2013-14 as compared to Rs32 billion in the same period of 2012-13. Provincial excise duty witnessed an increase from Rs1.2 billion to Rs1.5 billion, stamp duty increased from Rs2.3 billion to Rs2.8 billion and other taxes from Rs26 billion to Rs29 billion.
Similarly, the Khyber Pakhtunkhwa tax collection increased to Rs5.743 billion during the first half of 2013-14 as compared to Rs 1.8 billion for the same period of the last fiscal year, reflecting an increase of 216 per cent. A considerable increase has been witnessed in property tax collection i.e Rs239 million during the first half of 2012-14 as compared to Rs51 million for the same period of the last fiscal year. Motor vehicle tax collection increased from Rs461 million to Rs505 million and other taxes from Rs1 billion to Rs4.6 billion.
While, the tax collections in Balochistan also increased to Rs853 million during first half of 2013-14 as compared to Rs483 million in the same period of 2012-13. The property tax collection in the province increased from Rs23 million to Rs33 million. Motor vehicle tax increased from Rs24 million to Rs214 million.
Meanwhile, the meeting decided that all four provincial governments would make efforts, as agreed in the last NFC Award, to help increase the country’s tax-to-GDP ratio by expanding tax-base in their respective provinces.
The meeting discussed the fiscal performance of all provincial governments in terms of provincial revenue receipts and trends of the current and development expenditures during the first seven months (July, 2013-January, 2014) of the current financial year (2013-14).
