Sales tax collection on imports rises by 21%.

Karachi: The collection of sales tax on imports rise to PKR 70 billion during the first seven months (July-January) of the current fiscal year, according to a news report. To this effect, the government was seen to maintain a growth rate of 21%.

Balochistan tax revenue increases by 164%, govt determined to meet the target

Further, the trade deficit has narrowed by 30% during the first half of the current fiscal year – owing to a significant decline reported in the import bills for the said period. It stood at USD 11.69 billion during July-December in the current fiscal, compared with the deficit of USD 16.77 billion for the same period last year.

The import bill declined by 17% during the first half of the fiscal year to USD 23.23 billion, as compared with USD 27.95 billion in the corresponding half of the last year.

KP records 42% growth in annual tax revenue

The country’s tax authorities attributed the increase in sales tax collection to the abolishment of the zero-rating regime for all local and import supplies – announced in the federal budget 2019-20.

The government had replaced its zero-rating regime with a normal sales tax rate of 17%. However, the exporters had been allowed to claim refunds against payment of 17% tax on import of their raw material and other capital goods.