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ISLAMABAD: Domestic consumption of petroleum products in Fiscal year 22 has considerably declined as the Federal Board of Revenue (FBR) only collected Rs107 billion sales tax from petroleum products during 2021-22 against Rs234.9 billion in 2020-21, indicating a decrease of 54.4 percent.
According to the FBR’s yearly figures for 2021–22, ten industries, including petroleum goods, electricity, sugar, cement, natural gas, cigarettes, aerated water and beverages etc., account for almost 44 percent of domestic sales tax collection.
Following the fall in the sales tax rate, the share of POL products, which accounted for 22.7 percent of all revenue during the 2020–21 fiscal year, fell to 9.9 percent in 2021–22.
Another important contributor is electricity, which climbed from 12.7 percent in 2020–21 to 13.8 percent in 2021–22. The revenue from electrical energy increased by 14.1%, that from sugar by 13.3%, that from natural gas by 40.4%, and that from electronics by 20.5%. However, negative growth was seen in the cement sector (-3.6%) due to a decline in sales during 2021–2022, POL products (–54.4%), motor vehicles (–74.7%), and motor vehicles (–74.7%).
According to the FBR, import sales taxes contribute significantly to total federal tax revenues. The net amount of sales tax collected on imports in 2021–2022 increased by 56.0% to Rs1,740.7 billion from Rs1,115.9 billion in 2020–2021.