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Jul 10 - 16, 2000

Rs346 billion net tax revenue collected

The Central Board of Revenue has informed the government that it had a net tax collection of Rs346 billion in the financial year 1999-2000, against a revised target of Rs351 billion, the net growth during the year, over 1998-99, recorded at 13.4%.

The final figures would be presented to the chief executive here on Thursday by the top CBR officials with explanations on shortfall in collection under each tax-head, except under the sales tax head, which recorded a 63% growth in actual collection over 1998-99.

Its learnt from sources that receipts of Rs347 billion were recorded collectively under the Sales Tax, Income Tax, Customs Duty and Central Excise heads of the federal revenues. A sum of Rs9 billion, collected under the Tax Amnesty Scheme-2000 was added, raising the net total to Rs356 billion.

However, the CBR is under directions from the federal government to pay Rs10 billion in refunds to the claimants, which brings down the total to Rs 346 billion. Total collection made last year was Rs 305 billion.

The net sales tax collection for the year stood at Rs117 billion, said Member ST, Sarfraz Ahmad Khan. Out of this total, the domestically collected ST was Rs49.6 billion while the ST collected at import stage was Rs67.4 billion. In 1998-99 the ST collection was Rs72 billion. Its growth over the previous year was 32%.

The import related sales tax in 1998-99 was Rs 43.4 billion, while the domestically collected ST was Rs28.2 billion.

The Income Tax department collected Rs114 billion, in 1998-99 its collection was Rs105.4 billion.

The Customs department this year collected Rs60 billion, in 1998-99 its collection was Rs65.3 billion, showing a decrease of Rs5.3 billion. The Central Excise department collected Rs56 billion in 1999-2000, Rs61 billion, showing a decrease of Rs5 billion this year.

New profit rates on savings schemes

The National Savings Directorate has announced new profit rates on its various schemes applicable from July 1. According to a press release of the directorate issued here on Saturday, the rate of return on a certificate of Rs100 under Defence Savings Certificate would be Rs109 on completion of first year; Rs121 on second year; Rs138 on third year; Rs157 on fourth year; Rs184 on fifth year; Rs210 on sixth year; Rs238 on seventh year; Rs275 on 8th year; Rs322 on ninth year; and Rs371 10th year.

The rates of profit on Special Savings Certificates (Registered) purchased /deposited on or after July 1 shall be: i) for each of the first five periods of complete six months 5.5 per cent, 11 per cent per annum; ii) for the last period of complete six months, 6 per cent per half year and 12 per cent per year.

Profit on Regular Income Certificates of Rs100,000 purchased on or after July 1 will be Rs1040 per month, subject to 10 per cent withholding tax. On saving accounts the profit on the deposit made on or after July 1 will be 6.5 per cent on cheqing accounts and 7 per cent on other accounts.

NWFP debt to hit Rs60 billion

NWFP's total loan liabilities accumulated over the years would jump up to over Rs60 billion at the close of financial 2000-2001, according to the budget estimates for the new fiscal announced by the provincial government on June 26 last.

The massive loan liabilities have been accumulated due to the province's inability to finance its Annual Development Programme, making the successive provincial governments rely totally on domestic and foreign loans.

Of the amount major chunk of Rs37,832.627 million is payable to the centre against the Cash Development Loan (CDL) the province receive every year from it as support to ADP.

After repayment of around Rs969.961 million during the 2000-2001, total debt under the CDL head would stand at Rs36,362.666 million at the close of the current financial year.

Govt borrowings touch Rs60bn

Net borrowing of the government for budgetary support rose to about Rs60 billion on June 10 eclipsing hopes of meeting the revised target of Rs28 billion for fiscal 1999-2000.

Sources at the ministry of finance told that between July 1, 1999 and June 10, 2000 the government had made a net borrowing of around Rs60 billion from the banking system.

Telecard to raise capital

Telecard Limited — the payphone company — proposes to increase the authorized capital by another 25 per cent to Rs1.250 billion, from Rs1.000 billion.

A shareholders' meeting has been called by the company for July 27 to approve the raise.

The latest push in authorized capital comes within just about two months of the four-fold increase in authorized capital from Rs250 million to Rs1 billion, done by the company in early May.

SECP gives option to spinning mill

The chief executive and directors of Nazir Cotton Mills Limited have been directed by the Securities & Exchange Commission of Pakistan to "either bear the loss on sale of shares of Silver Fibre Spinning Mills Limited alongwith mark-up not less than the company's own borrowing costs on the total amount of investment for the period from which this investment was made, or to make arrangements to take back the said shares ensuring control of the company, as a holding company, over Silver Fibre Spinning Mills Limited".

Right share offer

Pak-Apex Leasing Co has plans to ask shareholders for cash in right issue at 100% (one-for-one). The issue is to be priced at 20% discount (Rs 8/- for each share of the face value of Rs 10/-).

An extraordinary general meeting of the shareholders would be held on Aug 5 to approve the right share offer and the book closure dates have been notified between July 29 to Aug 5. The ruling market price of the share is also Rs 8/-. The right issue, when through, would go to double the paid-up capital from Rs100 to Rs 200 million.