LAHORE: The sales tax collection of the Punjab Revenue Authority for multiple services has increased by 26.9 per cent to Rs12.299 billion in the first quarter of fiscal 2015-16 from Rs10.182 billion in the corresponding months of 2014-15.

The revenue collection, however, has witnessed 11.9 per cent decline in telecommunication sector while maximum increase of 642 per cent had been witnessed in collection from auto-workshops.

Officials blame the Federal Board of Revenue for less revenue collection from the telecom sector, saying the bureau is not getting collections under the General Sales Tax adjusted with the ST of services with the PRA despite a Memorandum of Understanding between two tax collection agencies.

They say the FBR is required to transfer adjustments from heavy import of technologies and machinery by telecom operators who get the amounts adjusted with the FBR under GST.

Official figures available with Dawn show that the authority has collected Rs3.873 billion from telecommunication sector in July-September 2015 against Rs4.396 billion collection in July-Sep 2014.

An amount of Rs2.065 billion has been collected from banking/non-banking/ insurance sector in first quarter of 2015-16 compared to Rs1.804 billion collected in the corresponding period of 2014-15 with 14.46pc increase.

The revenue collection under constructual execution of work or furnishing supplies sector has increased by 93.06pc to Rs1.176 billion in July-Sept 2015 from Rs609 million in the same period of corresponding year.

The revenue collection under other services has also jumped from Rs443 million in first quarter of 2014-15 to Rs1.144 billion in the first quarter of 2015-16, posting an increase of 157.8pc.

The revenue collection from manpower recruitment agents, including labour and manpower supplies, has increased by 483.89pc to Rs185 million in the first quarter of current fiscal from Rs31.7 million in the same period of previous fiscal.

The authority has collected Rs318 million ST from hotels in July-Sep 2015 against Rs241 million in July-Sep 2014 with 31.78pc.

The revenue collection from construction services has also witnessed an increase of 307.8pc followed by cargo service by road passenger transportation business and transportation through pipeline and conduit services 228.92 pc; software or IT based system development consultants 163.44pc; toll manufacturing (against processing charges) including industrial and similar outsourcing of industrial or commercial processes 159.10pc; withholding agents 151.93 pc; customs agents 37pc; business support services 30.61pc; port operators, airport operators, airport ground services providers and terminal operators 30.05pc; security agencies 24.21pc; services in relation to transport of goods other than water, through pipeline, conduit or any other medium 22.44pc; franchise services 22.09pc; restaurants 20.60pc; courier services 18.45pc; services provided in respect of mining of minerals, oil & gas including related surveys and allied activities 8.74pc; and technical scientific & engineering consultant including technical inspection and certification services 0.15pc.

Published in Dawn, October 18th, 2015

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