FY22 domestic consumption of POL products: Sales tax collection declines 54.4pc to Rs107bn YoY
- Major chunk of around 44 percent of sales tax domestic collection comes from ten sectors including petroleum products, electricity, sugar, cement, natural gas
ISLAMABAD: The Federal Board of Revenue (FBR) has collected Rs 107 billion sales tax from domestic consumption of petroleum products during 2021-22 against Rs 234.9 billion in 2020-21, reflecting a decrease of 54.4 percent.
The FBR’s annual data for 2021-22 revealed that a major chunk of around 44 percent of sales tax domestic collection comes from ten sectors including petroleum products, electricity, sugar, cement, natural gas, cigarettes, aerated water/beverages, etc.
After reduction of sales tax rate, the share of POL products, the top revenue generating source during 2020-21 with 22.7 percent share, has declined in 2021-22 to 9.9 percent.
The electricity is another major contributor with 13.8 percent share in 2021-22 increased from 12.7 percent in 2020-21. The collection from electrical energy grew by 14.1 percent, sugar by 13.3 percent, natural gas by 40.4 percent, electronics by 20.5 percent. However, negative growth was recorded by POL products at 54.4 percent and motor cars by 74.7 percent mainly due to reduction of sales tax rates and cement sector at 3.6 percent due to reduction in sales during 2021-22.
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The FBR said sales tax on imports is also an important component of federal tax receipts. The net collection of sales tax on imports during 2021-22 stood at Rs. 1,740.7 billion against Rs 1,115.9 billion in 2020-21, registering a growth of 56.0 percent.
Top 10 commodities of sales tax import have contributed a major share, i.e. 75.6 percent from sales tax on imports. The petroleum is the leading source of sales tax collection at import stage. Its share in total sales tax imports is 26.4 percent. During FY 2021-22 collection from POL products was around Rs 459 billion against Rs. 255.7 billion during 2020-21 reflecting a growth of 79.5 percent. This increase is attributed to increase in global prices, FBR data added.
Copyright Business Recorder, 2022
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