ISLAMABAD: About 77% of tariff collection was contributed by 15 major commodities, including vehicles, iron and steel, fuels/mineral oils, paper and paperboard, and oilseeds between July and December (2021-22).
According to the FBR report on revenue performance during the first half of 2021-2022, customs duties represent 25.1% and 16.3% of indirect taxes and federal taxes, respectively.
Net customs duty collection during the first half of 2021-2022 was about Rs 477.2 billion, indicating a growth of 42.8%.
The main factor contributing to the collection of customs duties is the 65% growth in the value of dutiable imports during the period under review.
About 77% of customs duty collection was contributed by 15 major products grouped under PCT chapters.
With the exception of two positions, namely photosensitive semiconductor devices (Ch85) and organic chemicals (Ch29), all other positions recorded positive growth.
The basis of customs revenue is dutiable imports; therefore, the increase in the collection of customs duties is attributed to the increase in the value of dutiable imports during the first half of 2021-2022.
The import duty value of most items has increased significantly in the first half of the current fiscal year.
However, it is imperative to mention that more than 22% of customs revenue comes from POL products (Ch27) and the share of petroleum products in total dutiable imports is more than 45%, which makes customs revenue vulnerable.
A minor change in the volume of imports of these items may negatively impact customs and other import-related revenue, the FBR added.
Copyright Business Recorder, 2022