ISLAMABAD - With zero burden on the national exchequer, for its salaries or other expenses, Utility Stores Corporation of Pakistan has deposited Rs130 billion on account of income and sales tax in the government treasury.
The Utility Stores Corporations of Pakistan is paying the salaries of its employees from its own revenues and has no burden on the national exchequer, official source told The Nation.
Notably, the federal government is planning to wind up USC, and instead exploring an alternative arrangement to help the deserving people.
“I don’t know what prompted the government to close the USC or even restructuring of the corporations,” the official said.
There are around 5400 USC outlets across the country, which includes the corporation owned stores of around 3882 and the remaining are franchises, the source maintained.
The USC has approximately 11500 employees, with the total payment of Rs6 billion annual salaries, the source said and added that the federal government is not paying even a penny on this account.
The USC purchases goods in bulk, therefore getting good rates as compared to small stores. The profit margin of the USC is 15 percent, however, on the subsidised goods the margin is less, the official said.
The USC paid Rs3.735 billion in sales tax, Rs95.333 billion sales tax paid by vendors (input tax) and Rs947 million sales tax on subsidy. On account of income tax, the USC paid turnover tax of Rs11.783 billion, employees income tax payable Rs393 million and Rs17.522 million on account of supplier income tax payable.
In 2012-13, USC paid Rs8.873 billion in taxes, Rs8.705 billion in 2013-14, Rs6.520 billion in 2014-15, Rs7.690 billion in 2015-16, Rs7.894 billion in 2016-17, Rs4.72 billion in 2017-18, Rs1.446 billion in 2018-19, Rs10.186 billion in 2019-20, Rs17.375 billion in 2020-21, Rs18.253 billion in 2021-22, Rs16.917 billion in 2022-23, the source said. In just one fiscal year of 2023-24, the USC has deposited Rs21.133 billion on account of income tax and sales tax in government treasury, the source added.