ISLAMABAD: Federal Board of Revenue (FBR) has collected Rs100 billion as customs duty and sales tax on import of cars during fiscal year 2019/2020, according to official documents.
The total revenue from imported cars fell by 31 percent to Rs100 billion during fiscal year 2019/2020 as against Rs144.5 billion in the preceding fiscal year.
The fall in revenue collection from this head mainly attributed to restriction imposed by the government under which the clearance of imported cars has to be done through payment in foreign exchange and that should be verified by banks.
Further, the global traveling restrictions following the spread of COVID-19 pandemic also hampered the revenue growth under this head.
According to official statistics the FBR collected Rs57 billion as customs duty on imported cars during fiscal year 2019/2020 as against Rs81.5 billion in the preceding fiscal year, registering a decline of 30 percent.
Similarly, the collection of sales tax on imported cars fell by 32 percent to Rs43 billion during fiscal year 2019/2020 as compared with Rs63 billion in the preceding fiscal year, showing a decrease of 32 percent.
The country imported motor cars worth $99 million during fiscal year 2019/2020 as compared with $222 million in the preceding fiscal year, showing a decline of 55 percent, according to data released by Pakistan Bureau of Statistics (PBS).