ISLAMABAD - The federal government collected total Rs661.85 billion by taxing the petroleum products in the last fiscal year despite a massive decline in crude oil prices and its imports.

The government deprived masses of the benefits emanating from cheaper oil prices in the international market by increasing taxes and levies during the financial year 2015-16.

It collected Rs661.87 under general sales tax, customs duties and petroleum levy, which is 17 percent more than Rs564.01 billion collected in the preceding year, according to a Federal Board of Revenue (FBR) report.

Oil prices had dropped to lowest level of $27 per barrel and remained below $45 per barrel throughout the last fiscal year. However, the government continuously charged higher general sales tax on the oil products except the last two or three months of the FY 2015-16 that increased the tax collection on petroleum products.

Against the standard GST of 17 percent, the government charged up to 51 percent sales tax on some of the oil products. The collection increased despite 28 percent decline in the imports of POL products.

Petroleum products were the top revenue spinner of domestic sales tax, contributing around 42 percent (or Rs269.76billion) to the total proceeds during the last financial year.

Petroleum remained a leading source of sales tax collection at import stage, too, with a share of 32 percent, as Rs219.09 billion were generated by taxing it.

The government also received Rs38 billion under customs duties on petroleum products. In the category of other taxes, Rs135 billion were collected under petroleum levy.

FBR managed to collect Rs3115 billion under provisional collection during FY2015-16 against the target of Rs3104 billion.

Furthermore, the tax-to-GDP ratio jumped from 9.4 percent in 2014-15 to 10.5 percent in 2015-16, according to the report of the FBR.

The report also reveals that the government collected Rs831.4 billion as withholding tax (WHT) during the last year. It collected Rs179.7 billion under WHT on imports, Rs92.25 billion on salary, Rs42.04 billion on dividends, Rs48.2 billion on bank interest, Rs220.04 billion on contracts, Rs24.9 billion on export, Rs28.62 billion on cash withdrawals, Rs25.53 billion on electricity and Rs47.65 billion WHT on telephone.

Meanwhile, the sales tax collection remained at Rs1, 323.69 billion during 2015-16 against Rs 1,088 billion in the corresponding period last year.

The share of sales tax on imports, in total sales tax net collection, remained around 52 percent. The net collection from sales tax on imports during FY 2015-16 stood at Rs683.5 billion against Rs553 billion in the preceding FY. Meanwhile, share of sales tax (domestic) stood at Rs640.17 billion as against Rs534.76 billion.

The FBR report further reveals that gross and net collection from customs duty during 2015-16 was Rs418.2 billion and Rs406.2 billion.

Meanwhile, the FBR generated Rs190.6 billion under Federal Excise Duty (FED) in the last financial year against Rs162.3 billion of the preceding year. The FED revenue target was missed by around Rs5 billion.