Annual sales tax collection from imports climbs up 27%

Annual sales tax collection from imports climbs up 27%

ISLAMABAD: The annual collection of sales tax on imports surged by over 27 per cent to Rs1.116 trillion during fiscal year 2020/2021, according to the official data of Federal Board of Revenue (FBR) made available to PkRevenue.com

The collection of sales tax on imports was Rs876 billion during the preceding fiscal year, the FBR data revealed.

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The FBR said that collection of sales tax on imports mainly depends on the volume and composition of imports.

Its collection stood at Rs.1,115.9 billion in 2020-2021 and exhibited a growth of 27.3 per cent.

The details of its collection confirm higher concentration of sales tax on imports in few items as evident from fifteen major commodity groups which contributed around 82 per cent of the collection in 2020-2021.

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Petroleum products are the top source of revenue generation of sales tax on imports which forms around 23 per cent of total collection of sales tax on imports.

The collection during 2020-2021 reflected around 10.6 per cent growth in petroleum products mainly due to 17 per cent growth in the imports of petroleum products.

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Iron and steel exhibited significant growth of 33.7 per cent in the collection of sales tax imports. This growth can be attributable to 29.4 per cent growth in its imports which is in line with growth in the collection during 2020-2021.

Automobile sector has recorded a substantial growth of around 89.6 per cent in the sales tax on imports mainly due to robust growth of around 98 per cent in its imports.

The remaining major revenue spinners exhibited positive growth due to their improved imports.

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