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From loss-making to tax-paying: Two-year performance of Utility Stores Corporation

From loss-making to tax-paying: Two-year performance of Utility Stores Corporation

ISLAMABAD: Utility Stores Corporations (USC) has put out a two-year performance report showing how the state-owned enterprise went from being a loss-making entity to tax-paying one.

As per details, the USC’s business inventory was valued at Rs5.46 billion in 2017-18, which rose to Rs15 billion until May 2020. It faced a deficit of Rs6.64 billion in 2017-18 and owed vendors a whopping Rs10.28 billion, which was brought down to Rs3.49 billion in July 2020.

Prime Minister Imran Khan rolled out Prime Minister’s Relief Package on Jan 8, this year, under which the USC was given Rs5 billion subsidy for purchasing essential commodities, aiming to provide the masses some relief.

In the first phase of the package, the subsidy was given on five basic items until April 17 and later the number of subsidised items was increased to 19. The government also brought in Ramazan Relief Package amid the coronavirus pandemic.

During the fasting month, the USC saw a record sale of Rs22billion worth of items. It’s sale doubled from Rs3 billion to Rs6 billion due to the government’s special attention and interest and provided commodities to 29.8 million families over the last six months.

In fiscal year 2018-19, utility stores’ total sale clocked in at Rs9 billion but jumped to Rs50.85 billion in FY2019-20. It paid a total of Rs7.09 billion tax from July 2019 until May 2020.