Pakistan Customs managed to collect more than one trillion rupees under customs duty and income and sales taxes from its unit in south region, constituting around 30 percent of the total tax revenue target set for the current fiscal year, an official said on Friday.
Abdul Rashid Sheikh, chief collector Appraisement (South) said the customs appraisement south collectorates comprise of three customs stations, including appraisement east, west and Port Qasim. The collection at these three stations was recorded at around Rs1,004 billion till the second week of June – a month marking the end of fiscal year of 2016/17, he added.
The tax revenue target for the Federal Board of Revenue was set at Rs3.521 trillion for 2016/17. “For the first time in the history of FBR, a single field customs unit has crossed the psychological benchmark of Rs1 trillion in revenue collection,” Sheikh said. “The amazing feat was achieved by the South region by improving the quality of assessments, controlling misuse of exemptions, maintaining transparency and facilitation of the genuine trade and taxpayers.”
The collector further said the efforts are indicative of special measures undertaken to bring significant improvement in the performance metrics of the region when compared in terms of growth in the volume of import versus the increase in revenue collection.
The Appraisement-South’s collection showed a robust 20 percent growth over the fiscal year of 2015/16. Individually, customs duty collection rose 24 percent, sales tax jumped 19 percent, income tax soared 13 percent and federal excise duty increased 17 percent year-on-year. Imports grew 12.5 percent in the period under review.
“The growth in taxes shows the increased efficiency in collection by the appraisement south by controlling revenue leakages and taking preventive measures against revenue loss,” Sheikh said. In the last fiscal year, the appraisement-south had also surpassed the revenue collection target by Rs85 billion. The total collection amounted to Rs902 billion in 2015/16 as against the target of Rs817 billion, up 25 percent. The customs unit may take the revenue collection to an expected Rs1,055 billion by the end of the current fiscal year from 730.6 billion in 2014/15, registering an increase of 45 percent in two years.
Courtesy by Investors Lounge