KARACHI: The government has allowed non-filers to register imported vehicles as huge revenue as duty and taxes is in jeopardy. As per latest figures Federal Board of Revenue (FBR) collected Rs164 billion collected on import of motor cars during last fiscal year , showing growth of 24.65 percent when compared the collection of the preceding fiscal year.
Revenue statistics released by the FBR showed the collection of customs duty and sales tax on import of motor cars increased significantly to Rs163.84 billion during fiscal year 2017/2018 as compared with collection of Rs131.44 billion in the preceding fiscal year.
Through Finance Supplementary (Amendment) Bill, 2018, the government proposed to allow non-filers of income tax returns to register imported vehicles. This government move, however, criticized by almost all the stakeholders terming it as counterproductive to broadening the tax base.
Considering the amount collected on import of vehicles one can imagine the revenue shortfall of the FBR as most of the imported vehicles are being registered by non-filers.
The FBR data showed that the collection of sales tax on imported vehicles surged to Rs66.75 billion during 2017/2018 as compared with collection of Rs53.13 billion in the fiscal year 2016/2017.
Similarly, the collection of customs duty sharply increased to Rs97.09 billion during the last fiscal year as compared with the collection of Rs78.31 billion in the preceding fiscal year.
The previous government had taken several measures to discourage import of luxury vehicles during the last fiscal year, including imposition of regulator duty and introducing different conditions. However, the import of motor cars in CBU and CKD conditions posted 15.6 percent growth.
The import of CBU/CKD motor cars increased to $1.26 billion during fiscal year 2017/2018 as compared with $1.09 billion in the preceding fiscal year.