Karachi, December 2, 2023 – The Federal Board of Revenue (FBR) has successfully garnered Rs 722 billion through customs duty and sales tax on the import and supply of petroleum products during the fiscal year 2022-2023.
Despite a 14 percent decrease compared to the previous fiscal year’s collection of Rs 840 billion, this substantial revenue contribution underscores the critical role of the petroleum sector in shaping the country’s fiscal landscape, as per FBR officials.
While the total collection for the fiscal year 2022-2023 reached Rs 7,146 billion, the share of customs duty and sales tax on petroleum products amounted to 10 percent. This represents a notable decline from the previous fiscal year, where the share stood at 13.66 percent in the total collection of Rs 6,149 billion. FBR officials attribute this shift to various factors, including changes in global oil prices and consumption patterns.
The official data highlights a significant surge in the collection of sales tax on domestic supplies, reaching Rs 152 billion during the fiscal year 2022-2023. This figure reflects a substantial 42 percent increase compared to the Rs 107 billion collected in the previous fiscal year. The surge in domestic sales tax collection suggests a robust local demand for petroleum products, contributing to the overall revenue generated.
In contrast, the FBR faced a considerable decline of 39 percent in the collection of sales tax on the imports of petroleum products during the fiscal year 2022-2023. The revenue board collected Rs 290 billion, a notable decrease from the previous year’s Rs 473 billion. This decline is indicative of potential shifts in import dynamics, influenced by market trends, trade agreements, and global economic conditions.
On a positive note, the collection of customs duty on petroleum products recorded an increase of 7.5 percent, reaching Rs 280 billion during the fiscal year 2022-2023. This growth, compared to the previous fiscal year’s collection of Rs 260 billion, indicates a stable revenue stream from customs duties despite the fluctuations in other components of the petroleum revenue.
FBR officials emphasize the dynamic nature of the petroleum sector, where external factors such as global oil prices, geopolitical developments, and environmental considerations can impact revenue patterns. The revenue board remains vigilant in adapting its strategies to ensure a resilient fiscal framework that can withstand external shocks.
As the fiscal year concludes, the FBR’s accomplishment of securing Rs 722 billion in revenue from customs duty and sales tax on petroleum products reflects the intricate balance between domestic consumption, import dynamics, and global economic influences. The data provides valuable insights into the resilience and adaptability of the revenue collection system in response to the evolving landscape of the petroleum sector.