Nearly 71 percent of customs duty collection has been contributed by ten major sectors including petroleum products, iron and steel, vehicles, electrical machinery, machinery & mechanical appliances, plastic resins, edible oil, tea/coffee, paper/paperboards, and oil seeds and oleaginous fruit.
It was revealed after the Federal Board of Revenue (FBR) conducted an analysis of customs duty collection from imports during 2021-22.
In line with the FBR, customs duty forms 16.4 percent of FBR revenue collection. Customs duties with 35 percent growth attained in the net collection performed very well during FY 2021-22 as compared to the last fiscal year.
The net collection during FY 2021-22 stood at Rs. 1,010.7 billion, which is Rs. 262.3 billion more than the amount collected during the last fiscal year.
It is to be mentioned here that customs duties have crossed the 1 trillion mark in FY 2021-22. It is clear from the statistics that around 71 percent of customs duty collection has been contributed by 10 major sectors.
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However, out of these sectors, only collection on account of electrical machinery showed a decrease. Collection from POL products surged by 172.2 percent, vehicles by 73.4 percent, and paper & paper board by 28.7 percent, according to FBR data.
In addition, the collection base of the customs revenues is provided by dutiable imports. In this regard, collection of customs duty on major items, to a great extent remained proportionate with growth in the value of dutiable imports.
As a whole, dutiable imports increased by 56.2 percent and consequently, the customs duty grew by 35 percent.
The FBR data further revealed that 21.5 percent growth is required in revenue collection to meet the target of Rs 7.4 trillion set for 2022-23 regardless of import contraction and increasing inflation. In absolute terms, nearly an amount of Rs. 1,322 billion additional revenues are to be collected by FBR in 2022-23 to meet the target.
