Over 12pc increase in LSM sales tax collections in FY16

Islamabad—The sales tax collections from the Large Scale Manufacturing (LSM) sector increased by 12.12 percent during the fiscal year 2015-16 compared to the revenues of the last year. The Federal Board of Revenue (FBR) collected sales tax of Rs.612.048 billion from LSM sector in the FY16 compared to the collection of Rs.545.883 billion in FY15, official sources said The collection is of those large scale manufacturers who are registered in the Large Taxpayers Units (LTU) they said adding since the rate of Sales Tax has remained constant during the years under consideration, the amount collected has no bearing on inflation.
The FBR successfully achieved the revenue collection target of Rs 3,104 billion during the FY 16, without making any downward revision during the year under review, as has been the common practice of past. The revenue collection showed 20 percent annual growth and an overall 60 percent growth compared to revenue collection in 2013 when the present government assumed responsibilities. This significant increase in revenue collection would not only help the federal government but the funds to the provinces would also increase to carry out projects and programs of public benefit and interest.
Based on the performance of the last year, the board has fixed the revenue collection target for Fiscal Year 2016-17 as Rs 3,621 billion, keeping in view the improvement in economy and macro economic stabilization.—APP

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