ISLAMABAD: A consistent focus of Federal Board of Revenue (FBR) on leather sector over the years has produced very positive results because tune of taxes collected from leather sector has witnessed a persistent growth.
A well placed source at FBR, while sharing statistics of taxes collected from leather sector in last three years, said that total collection of all kinds of taxes namely customs duty, withholding tax, sales tax as well as income tax had shown constant growth in last three years.
The statistics said that FBR collected total Rs 3768.9 million income tax from Leather sector in last three years 2014-2016. A bifurcation of these statistics show that tune of income tax from leather sector was Rs 711.5 million in the fiscal year 2014 and it mounted to the figure of Rs 1534.4 million in next financial year whereas the volume of income tax collection from leather sector touched the figure of Rs 1517.0 million in fiscal year 2016.
The source further said that Pakistan Customs collected total Rs 2043. 78 million customs duty from leather imports and exports during last three fiscal years. In these years, there had been a trend of constant increase in the amount of customs duty collection.
In the fiscal year 2014, the tune of customs duty collection from leather sector was Rs 429.54 million which soared up to the figure of Rs 603.37 million in the next financial year while it further increased to the tune of Rs 101.87 million in the fiscal year 2016.
Similarly, the source said that same trend of persistent growth in the total quantum of sales tax collection was witnessed in these years. Total amount of sales tax collection in last three years from leather sector was Rs 2284.08 million.
The tune of sales tax collection was Rs 577.87 million in fiscal year 2014, which went higher to the level of Rs 737.87 million in next fiscal year. Moreover, the sales tax collection from leather sector touched the figure of Rs 968.34 million in fiscal year 2016.
The source observed that total Rs 868.24 million were collected as withholding tax from leather sector in last three years; Rs 237.26 million, Rs 296.72 million and Rs 361.26 million in fiscal years 2014, 2015 and 2016 respectively. These figures also show a continuous growth in the tax collection which was solely due to a special focus of FBR on this sector, the source concluded.
