Islamabad, July 19: Pakistan's tax collection in the year ended June 30 fell below target because the war in Afghanistan disrupted trade and curbed economic activity. Tax revenue rose 2.8 per cent to 403.3 billion rupees (6.8 billion dollars) from 392.2 billion rupees from the previous year, said Vakil Ahmad Khan, spokesman for the central board of revenue, the federal tax authority. That's lower than the target of 457 billion rupees set by the government at the beginning of the year.
Collections fell short because of lower imports, the reduction in the highest rate of duty by 5 percentage points to 30 per cent, a cut in levies on 3,000 items and the strengthening of rupee, khan said.
The US-led campaign against Afghanistan's ousted Taliban regime disrupted trade in the region, curbing Pakistan's economic growth and cutting into tax collection. The economy grew 3.6 per cent in the year through June 30, short of the 4 per cent target. The lower-than-targeted tax collection contributed to a budget deficit that swelled to 7 per cent of gross domestic product last fiscal year from an initial estimate of 4.9 per cent of gross domestic product .
Bureau Report