Import sales tax revenue increases 12pc to Rs528bln in Jul-Jan

KARACHI: Sales tax collection from imports rose 12 percent to Rs528 billion during the first seven months of the current fiscal year as foreign trade was seen recovering during the period, official data showed on Tuesday.

The Large Taxpayers Office (LTO) Karachi, which is responsible to report the collection of sales tax on imported goods, collected Rs473 billion under the head in the corresponding months of the last fiscal year.

Significant increase in volume of imported goods during the period resulted in impressive growth in the revenue collection.

Ease in coronavirus pandemic-related restrictions brought the industrial and commercial activities back to normal in the country, according to the sources.

The last year’s lockdown ravaged the already-ailing economy. However, the businesses had returned to normalcy since ease in lockdown after three to four months.

The revenue is expected to increase as the weakening second wave of coronavirus distances possibility of another economic shutdown.

All the customs collectorates located at the ports in Karachi collect the sales tax on imports on behalf of LTO Karachi.

The collectorate-wise collection of sales tax on clearance of imported goods revealed that MCC Port Qasim remained the highest contributor to exchequer.

The MCC Port Qasim collected Rs233 billion as sales tax during the first seven months of the current fiscal year compared with Rs225 billion in the corresponding months of the last fiscal year, showing a growth of 4 percent.

The MCC Appraisement East was the second highest contributor as it collected sales tax to the tune of Rs162 billion compared with Rs133.5 billion, showing an increase of 21 percent.

Meanwhile, the MCC Appraisement West registered a significant growth of 44 percent and collected Rs87.2 billion during the period under review compared with Rs60.6 billion in the corresponding period of the last fiscal year.

The collection of sales tax at import stage posted an increase of 19 percent in January. The collection during the month increased to Rs86 billion compared with Rs72.6 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 38 percent to Rs7.4 billion in July-January period compared with Rs5.3 billion in the corresponding period of the last fiscal year. The collection of FED was at Rs1.6 billion compared with Rs923 million in the same month of the last year, showing an increase of 73 percent.