April-June net direct tax collections up 3.65% yoy

The net direct tax collections during the first quarter of the current fiscal year (up to June 2009) stood at Rs594bn, up from Rs574bn in the same period last fiscal, registering a growth of 3.65%. Growth in Corporate Taxes was 3.31% at Rs357.1bn as against Rs345.6bn, while Personal Income Tax (including FBT and STT) grew by 4.38% at Rs245.6bn as against Rs227.8bn in the year-ago period. Lower growth in net tax collection was mainly on account of higher tax refund outgo of Rs176bn, up 52% as against Rs115.7bn in the first quarter of last fiscal year.

Fringe Benefit Tax (FBT) shrunk by 7.56% to Rs10.3bn from Rs11.15bn in Q1 FY09 and the Securities Transaction Tax (STT) declined by 9.9% to Rs14.62bn from Rs16.23bn in the corresponding period last fiscal. Net tax collection during June 2009 as well as TDS growth, however, remained positive. Net collection during June 2009 stood at Rs353bn compared to net collection of Rs345.3bn during June 2008. Growth in Corporate TDS was 12.1% at Rs195.8bn as against Rs174.7bn last year and non-government PIT TDS growth was 12.4% at Rs.211.8bn compared to Rs188.4bn last year.