Duty Free Imports Jump By 62.5pc

By Published On: January 5, 20232.6 min readViews: 760

Duty Free Imports Jump By 62.5pc

By Published On: January 5, 20232.6 min readViews: 760
Table of contents
Share Post

Duty free imports have jumped by 62.5 per cent on an annual basis, much higher growth comparing dutiable imports, Federal Board of Revenue (FBR) said in a report released recently.

The FBR in its annual report on duty and tax collection for the year 2021-2022, stated despite lowering of tariff over the years, the customs duty is still one of the important sources of federal tax collection.

Dutiable imports are the duty base of Customs Duty. The share of dutiable imports in total imports has been 58.2 per cent during FY: 2021-22, which reflects that there, still exists significant chunk of duty free import.

“Similarly, duty free imports have also increased by about 62.5 per cent, which is higher than the growth in dutiable imports.”

The net collection of Customs Duty stood at Rs. 1,010.7 billion and has contributed around 26 per cent in the Indirect Taxes and about 17 per cent in Federal Taxes during the FY: 2021-22.

Collection of Customs Duty has improved by around 35 per cent as compared to previous year. The major reason of this growth was 56.2 per cent improvement in the dutiable imports. Thus, growth in the collection of Customs Duty is broadly in line with the growth in its base.

The target of Customs Duty was Rs. 960 billion during FY: 2021-22 which was surpassed by 5.3 per cent. This accomplishment is despite the fact that the Government of Pakistan imposed ban on some items to ease the burden of import bill, which resulted into a loss of around Rs. 9 billion in Customs during FY: 2021-22.

The major fifteen revenue spinners of Customs Duties exhibited 53.1 per cent growth in Customs Duty collection during FY: 2021-22 mainly due to massive 56.2 per cent increase in the dutiable imports.

This performance is despite around 34 per cent increase in the refunds/rebates paid to the taxpayers during FY: 2021-22.

Petroleum products have been the top major revenue source of Customs during FY: 2021-22. A robust growth of 172.2 per cent in the collection of Customs Duties from petroleum products was recorded against 118.5 per cent growth in the dutiable imports.

The colossal increase in the collection of Customs Duty has doubled its share in the overall collection during FY: 2021-22 as compared to FY: 2020-21. On the other hand, duty free import of petroleum products has gone up by huge growth of 185 per cent.

Around 73 per cent growth in the collection of Customs Duty recorded in the automobile sector was due to a massive increase of 68.5 per cent in the value of dutiable imports of new automobiles brands.

Iron and steel have also exhibited 18.2 per cent growth in the collection of Customs Duty against 3 per cent negative growth in dutiable imports.

The major reason for this mismatch was decline of 74 per cent in the collection of flat-rolled products etc., during FY: 2021-22.

The collection from electrical machinery also reflected negative growth of 8.4 per cent despite 28 per cent improvement in dutiable imports.

This is due to decline in the collection by 41 per cent in case of telephone related items while 36.2 per cent increase in its dutiable imports during FY: 2021-22.

Share This !

Rida Malik

Stay in the loop

Subscribe to our free newsletter.

Leave A Comment