ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs 459 billion as sales tax on import of POL products during the tax year 2022.
According to the annual report released by the FBR, the sales tax (import) collection has recorded an 80% increase in the tax year 2022 as against Rs 255.74 billion in the previous tax year.
Sales tax on imports is also an important component of federal tax collections, FBR said. Net collection of sales tax on imports during FY 2021-2022 stood at Rs 1,741 billion as against Rs 1,115.9 billion in FY 2020-2021, an increase of 56.0 percent.
The top 10 items accounted for the largest share of sales tax imports, i.e. 75.6 percent of sales tax collected on imports.
Petroleum is the major source of sales tax collection at the import stage. It accounts for 26.4 percent of the total sales tax revenue. Revenue from petroleum products was Rs 459 billion during FY 2021-22 compared to Rs 255.7 billion during FY 2020-21, showing a growth of 79.5 percent. FBR further said that this increase is due to rise in global prices.
The basis of sales tax on the receipt of imports is the import value. In this regard, a look at the import value of major commodities and overall growth in FY 2021-2022 indicates that the aggregate is well aligned with the growth trend seen in imports.
“Total import value increased by 58.8 percent and sales tax collection at the import stage increased by 56 percent,” FBR added.