ISLAMABAD: Around 61 percent of customs duty collection was contributed by 10 major sectors during 2020-21, reflecting dependency of import duties from few big sectors.
According to a report of the Federal Board of Revenue (FBR) issued on Wednesday, the customs duty constitutes around 16 percent of the FBR revenue collection.
Customs duties performed well during 2020-21 with 19.3 percent growth attained in net collection as compared to 2019-20. The net collection during 2020-21 stood at Rs747.3 billion, which is Rs120.6 billion higher than the amount collected in 2019-20.
Major chunk of customs revenue like other taxes depends on few major sectors.
Around 61 percent of customs duty collection has been contributed by 10 major sectors. Out of these sectors, only collection on account of electrical machinery recorded a negative growth, whereas collection from paper and paperboard grew by just 0.5 percent.
Decline in the collection of electrical machinery is attributable to substantial decline in its import value during 2020-21. Collection from rubber and vehicles have recorded a remarkable growth of 141.6 and 95 percent respectively.
Similarly, machinery and iron and steel also noted healthy growth during the period under review.
This reflects uptake in the economic activity, more specifically in large scale manufacturing.
Vehicles (non-railway) along with POL products have, however, remained top contributors of customs duty.
Base to the customs revenues is provided by dutiable imports.
In this context, overall collection of customs duty on major items remained commensurate with growth in the value of dutiable imports.
As whole, dutiable imports grew by 19.9 percent and accordingly, the customs duty gross collection increased by 20.6 percent, the FBR added.
Copyright Business Recorder, 2021
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