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State Bank of Pakistan (SBP) has asked the Federal Board of Revenue (FBR) to provide details of taxes collected on domestic air travel for compilation of a report on aviation sector in the upcoming quarterly report. It is learnt that the SECP has written a letter to the FBR on the aviation related taxes collected by the FBR.

According to the SBP, for background, the Economic Policy Review Department prepares SBP''s flagship publication, ''The State Bank of Pakistan''s Economy''. These reports contain analysis of the macro-economy, and are disseminated to the National Assembly and Senate. They also receive substantial coverage in newspapers, and are referred to widely by stakeholders such as international financial institutions and commercial banks.

In the upcoming quarterly report, the SBP is analysing the aviation sector, particularly domestic air passenger traffic. In this regard, the National Aviation Policy 2015 contains some recommendations for the rationalisation of aviation-related taxes. "For our analysis, we are looking to highlight the related trends."

In particular, the SBP has sought following details pertaining to domestic air travel: a summary of tax rates (percentages/flat charges) levied by the FBR over the years on this segment; head-wise amounts of tax collection by FBR, for categories like fuel surcharges and excise duties.

Ideally, the SBP is looking for the annual time series ranging from FY09 to FY18. The SBP has already reviewed the FBR yearbook 2015-16 and located some data (such as under section 236-Advance Tax on Sales through Auction @5pc), and are looking to update this with FY17 and FY18 numbers, the SBP added.

Copyright Business Recorder, 2019


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