By Muhammad Yasir
KARACHI: The prolong gloom and doom at the Karachi Stock Exchange (KSE) has wiped out government’s revenue by around 87 percent at the end of first half of 2008-09 compared to the same period of previous fiscal year.
According to the data made available to Daily Times, the Regional Tax Office (RTO) Karachi has witnessed sharp decline in tax collection from equity market on direct tax accounts. The overall tax generation stood Rs 241.866 million in 1HFY09 as compared with Rs 2.010 billion tax revenues collected in 1FY08 by RTO Karachi.
The tax collection on the account of Withholding Tax (WHT) has been Rs 152.284 million during July-December 2008. RTO has received around Rs 1.045 billion taxes under the same account and in the corresponding period last fiscal, showing 85 percent reduction year-on-year basis.
Only in December 2008, the same tax has been recorded Rs 217.146 million as compared with Rs 1.078 million in the same month of previous year, depicting almost 100 decline year-on-year.
Around 450 share traders of KSE are registered with RTO Karachi, who contribute healthy revenues.
The stock market has seen a trading halt during 318 days, as the indices were frozed by the management to prevent the bourses from free falling in 1HFY09. The market has witnessed the outflow of portfolio and local investment since the uplift of floor on the indices, analysts said.
The market remained bearish to reach below 6000 points by the end of first half of current fiscal year, whereas the value of shares has also shrunk to the lowest level.
RTO Karachi has received Rs 965.469 million under Capital Value Tax (CVT) in the first half of 2007-08 but in the current fiscal year, the tax collection under the same head plunged sharply by 90 percent in year-on-year terms to stand at Rs 89.243 million in the first half of 2008-08.
Alone in December 2008, the regional tax office collected Rs 0.568 million under the same account, which also squeezed by 100 percent as compared with same month of last year. RTO received Rs 138.471 million in December 2007.
During July-December 2008, RTO Karachi received Rs 0.162 million direct taxes on the account of financing of badla, which was introduced in this budgetary year.
KARACHI: The prolong gloom and doom at the Karachi Stock Exchange (KSE) has wiped out government’s revenue by around 87 percent at the end of first half of 2008-09 compared to the same period of previous fiscal year.
According to the data made available to Daily Times, the Regional Tax Office (RTO) Karachi has witnessed sharp decline in tax collection from equity market on direct tax accounts. The overall tax generation stood Rs 241.866 million in 1HFY09 as compared with Rs 2.010 billion tax revenues collected in 1FY08 by RTO Karachi.
The tax collection on the account of Withholding Tax (WHT) has been Rs 152.284 million during July-December 2008. RTO has received around Rs 1.045 billion taxes under the same account and in the corresponding period last fiscal, showing 85 percent reduction year-on-year basis.
Only in December 2008, the same tax has been recorded Rs 217.146 million as compared with Rs 1.078 million in the same month of previous year, depicting almost 100 decline year-on-year.
Around 450 share traders of KSE are registered with RTO Karachi, who contribute healthy revenues.
The stock market has seen a trading halt during 318 days, as the indices were frozed by the management to prevent the bourses from free falling in 1HFY09. The market has witnessed the outflow of portfolio and local investment since the uplift of floor on the indices, analysts said.
The market remained bearish to reach below 6000 points by the end of first half of current fiscal year, whereas the value of shares has also shrunk to the lowest level.
RTO Karachi has received Rs 965.469 million under Capital Value Tax (CVT) in the first half of 2007-08 but in the current fiscal year, the tax collection under the same head plunged sharply by 90 percent in year-on-year terms to stand at Rs 89.243 million in the first half of 2008-08.
Alone in December 2008, the regional tax office collected Rs 0.568 million under the same account, which also squeezed by 100 percent as compared with same month of last year. RTO received Rs 138.471 million in December 2007.
During July-December 2008, RTO Karachi received Rs 0.162 million direct taxes on the account of financing of badla, which was introduced in this budgetary year.
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