ISLAMABAD: Federal Board of Revenue (FBR) collected Rs 190.6 billion federal excise duty (FED) in fiscal year 2015-16 with a growth of 17.5 per cent as it collected Rs 162.3 billion during the corresponding period last year.
According to the FBR’s quarterly review, the FED constitutes around 10 per cent of indirect taxes and around 6 per cent of the federal taxes collected by the revenue authority.
However, the monthly growth trend in FED collection remained inconsistent during 2015-16. In the months of June and December it touched the highest marks of 47.9% and 41.2% respectively whereas it was negative in the months of August and January. The months of October and April showed the growth in collection at around 6 percent, the report said.
The FBR has said that the 32.6 percent growth in customs duty collection during 2015-16 is mainly due to withdrawal of SROs, upward revision of tariff slab from 1 to 2 percent in budget 2015-16 and raise in effective rate of duty from 11.7 to 12.1 percent.
As per the quarterly review, the customs duty constitutes around 21% and 13% of the indirect taxes and federal taxes respectively. The gross and net collection from customs duty during July2015 to June 16 has been Rs 418.2 billion and Rs 406.2 billion entailing growths of 32.6% each. This massive growth has cast healthy influence on the overall growth of the federal taxes and contributed substantially in historic achievement of country’s target for 2015-16. The major reasons of this robust growth are 28.3% rise in dutiable imports mainly due to measures like withdrawal of SROs, upward revision of tariff slab from 1% to 2% during Budget 2015-16 etc. Moreover, effective rate of duty has also increased from 11.7% to 12.1% during 2015-16.
