ISLAMABAD – The Utility Stores Corporation of Pakistan has deposited Rs 130 billion in income tax and sales tax into the state exchequer without any burden on the state exchequer through salaries or other expenses.
The Utility Stores Corporations of Pakistan pays the salaries of its employees from its own revenue and thus does not burden the state exchequer, official sources told The Nation.
In particular, the federal government plans to dissolve the USC and instead consider an alternative arrangement to help people in need.
“I don’t know what prompted the government to close USC or even restructure the companies,” the official said.
There are around 5,400 USC outlets across the country, including around 3,882 group-owned stores and the rest are franchises, the source added.
The USC has around 11,500 employees who pay salaries totaling Rs 6 billion annually, the source said, adding that the federal government does not pay even a penny for this.
The USC buys goods in bulk and hence gets good prices compared to small shops. The profit margin of the USC is 15 percent, but the margin is less on the subsidized goods, the official said.
The USC paid Rs 3,735 crore as VAT, Rs 95,333 crore as VAT from suppliers (input tax) and Rs 947 crore as VAT on subsidies. In income tax, the USC paid Rs 11,783 crore as VAT, Rs 393 crore as employee income tax and Rs 17,522 crore as supplier income tax.
In 2012-13, USC paid Rs 8,873 crore in taxes, in 2013-14 Rs 8,705 crore, in 2014-15 Rs 6,520 crore, in 2015-16 Rs 7,690 crore, in 2016-17 Rs 7,894 crore, in 2017-18 Rs 4,720 crore, in 2018-19 Rs 1,446 crore, in 2019-20 Rs 10,186 crore, in 2020-21 Rs 17,375 crore, in 2021-22 Rs 18,253 crore and in 2022-23 Rs 16,917 crore, according to the Source. In the financial year 2023-24 alone, the USC has deposited Rs 21,133 crore in income tax and sales tax into the state exchequer, the source added.