ISLAMABAD: Federal government collected Rs144.508 billion in fuel taxes during the first half of this fiscal year as against Rs139 billion collected in the corresponding period last year, defying the government’s projection of decline in revenue collection from the sector.

This improved collection and substantial cash surplus of Rs110.395 billion offered by the four provinces scaled down consolidated fiscal deficit to Rs651.823bn (2.2 per cent) of GDP during July-Dec 2014-15.

The Ministry of Finance on Monday released half-yearly fiscal operations statement showing a growth of 3.96pc in the six oil and gas related taxes during the period under review. This does not include sales tax that is charged on all petroleum products at the rate of 17pc and over 20pc on natural gas.

The ministry said it collected Rs59.973bn as petroleum levy in first six months of this fiscal year compared with Rs51.6bn over the same period last year, an increase over 16pc.

On the other hand, the government collected Rs14.002bn as development surcharge on gas compared with Rs29bn in the corresponding period last year, a decline of Rs14.998bn, or 51.7pc.

This drop in development surcharge is the outcome of blockade of recovery of gas surcharge on the direction of the court. The amount of Rs14.002bn was collected in the first couple of months of this fiscal year until the courts suspended its collection.

Likewise, the government earned Rs40.911bn as royalty on oil and gas during July-Dec 2014-15 compared with Rs36.7bn in the same period last year, an increase of 11.47per cent.The government also collected Rs4.380bn as discount retained on crude oil compared with Rs8.3bn in the same period last year, a decline of 47.22pc.

The collection on account of Gas Infrastructure Development Cess (GIDC) went up by 159.6pc to Rs15.578bn as against Rs6bn over the corresponding period last year. And the windfall levy on crude oil stood at Rs8.664bn.

In the first six months, the finance ministry said that total fiscal deficit stood at Rs651.823bn because of Rs110.395bn cash surplus provided by the four provincial governments. The fiscal deficit was worked out at 2.2pc of GDP at the end of December 31, 2014 against Rs540bn, or 1.2pc, in the same period last year.

The ministry said the total revenue in first six months of 2014-15 stood at Rs1,749.087bn as against Rs1,684bn of same period last year, an increase of 3.86pc.

On the other hand, total expenditure stood at Rs2,400.910bn compared with Rs2,225bn over the corresponding period of last year, up by Rs175.91bn, 7.9pc.

The tax revenue in six months amounted to Rs1,361.114bn during the period under review as against Rs1,172bn over the last year, an increase of 16.13pc or Rs189.114bn.

The defence expenditure stood higher by 11.73pc at Rs329.625bn as against Rs295bn in the corresponding period of last year.

Published in Dawn February 17th , 2015

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