Customs duty in 2023-24: Petroleum sector, imported vehicles top contributors

ISLAMABAD: Two top contributors of customs duty were the petroleum sector and imported vehicles during 2023-24. The Federal Board of Revenue’s (FBR) report on import duty collection during 2023-24 revealed that the Customs Duty collection experienced a significant improvement during 2023-24 compared to the previous fiscal year.

After a period of negative growth, customs duty revenues rebounded, showing a positive growth of 18.5%. The net collection for 2023-24 amounted to Rs 1,104.1 billion, up from Rs 931.7 billion in the prior fiscal year.

Customs duty contributed approximately 12% to the total FBR revenues for the current fiscal year.

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The petroleum, oil, and lubricants (POL) sector remains the largest contributor to Customs Duty, accounting for 29.1% of the total and witnessing a 14.1% growth in collection during 2023-24. Vehicles were the second largest contributor, with an 11.0% share and a significant 42.0% increase in collection.

Conversely, the collection from edible oil saw a decline of 12.7%, which was attributed to a 13.9% decrease in imports.

The dutiable goods form the primary tax base for customs. As evidenced by the data, the collection of customs duty on major items aligns closely with the growth in the value of these imports. The dutiable imports saw an increase of 13.4%, and correspondingly, customs duty collections rose by 17.0%, reflecting a robust relationship between import values and duty collections, FBR added.

Copyright Business Recorder, 2024