Monday, October 25, 2021

Import tax collection increases 10.3pc to Rs441bln in first half

KARACHI: The Federal Board of Revenue (FBR) pulled in Rs441 billion as sales tax collection from imports during the first half of the current fiscal year of 2020/21, recording a 10.3 percent growth due to increased foreign trade, official data showed on Monday.

According to the collection figures, the sales tax collection increased from Rs400 billion in the same half of the last fiscal year.

Sources at Large Taxpayers Office (LTO) Karachi attributed the rise in the collection to improvement in clearance of goods at customs stage.

Trade sentiments were high as the government had not opted to impose strict lockdown in the second phase of the coronavirus outbreak, according to the sources. The government eased four-month lockdown related to the infection in August and acted smartly to avoid economic shutdown to offset steep unemployment and social disorder.

Worldwide too, economic activities showed positive signs as coronavirus panic started to subside with the incoming vaccination.

Pakistan Bureau of Statistics (PBS) is yet to issue trade data for the first half. Imports rose two percent to $19.5 billion in the July-November period, according to the PBS.

The LTO Karachi has jurisdiction to report sales tax on imported goods collected at ports located in Karachi.

The details of collection showed

Model Customs Collectorate (MCC) Port Qasim collected Rs197 billion during July-December 2020/21 compared with Rs191 billion in the same period of the last fiscal year.

The sales tax collection at MCC Appraisement West posted 46 percent growth to Rs73.1 billion during the first half of the current fiscal year as compared with Rs50 billion in the same half of the last fiscal year.

MCC Appraisement East collected Rs133 billion during July-December 2020/21 compared with Rs112 billion in the corresponding period of the last fiscal year, showing 19 percent growth.

The collection of sales tax at import stage posted an increase of 29 percent in December 2020. The collection during the month increased to Rs86 billion compared to Rs67 billion in the same month of the last year.

The LTO Karachi also collects federal excise duty (FED) on import of goods. The FED collection registered growth of 23 percent to Rs5.8 billion during July – December 2020/21 compared with Rs4.7 billion in the corresponding period of the last fiscal year.

The collection of FED was at Rs923 million during December 2020 compared with Rs667 million in the same month of the last year, showing an increase of 38 percent.



Source: The News

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