ISLAMABAD: Around 77 percent of customs duty collection has been contributed by 15 major commodities including vehicles, iron and steel, mineral fuels/oils, paper and paperboard and oil seeds during July-December (2021-22).
According to the FBR report on revenue performance during first half of 2021-22, customs duty constitutes 25.1 percent and 16.3 percent of the indirect taxes and federal taxes, respectively.
The net collection from customs duty during first half of 2021-22 has been around Rs477.2 billion indicating a growth of 42.8 percent.
The major contributing factor behind customs collection is the 65 percent growth in dutiable import value during the period under review.
Around 77 percent of customs duty collection has been contributed by 15 major commodities grouped in PCT Chapters.
Except two items, ie, photosensitive semiconductor devices (Ch85) and organic chemicals (Ch29) all other items recorded positive growth.
The base of customs revenues is the dutiable imports; hence, the rise in customs collection is attributed to the rise in dutiable import value during first half of 2021-22.
The dutiable import value of most of the items grew substantially during the first half of current fiscal year.
However, it is imperative to mention that more than 22 percent of the customs revenue contributed by POL products (Ch27) and the share of the petroleum products in total dutiable imports is more than 45 percent, thus, making customs revenue vulnerable.
A minor change in import volume of such items can hit badly to the customs and other import related revenue, the FBR added.
Copyright Business Recorder, 2022