Customs duty charged on imported vehicles remained the top revenue earner during 2017-18, contributing as much as Rs 97.094 billion to the national exchequer during 2017-18 as against Rs 78.313 billion in 2016-17, reflecting a growth of 24%.
The Federal Bureau of Revenue’s (FBR) analysis of customs duty (2017-18) on its Year Book 2017-18 revealed that the contribution of customs duty from imported vehicles has increased from 15.4 percent in 2016-17 to 15.6 percent in 2017-18.
The FBR said that the customs duty constitutes around 26% and 16% of the indirect taxes and federal taxes respectively. The share of customs duties in FBR collection is gradually increasing. The net collection from customs duty during FY 2017-18 has been Rs 608.3 billion indicating growth of 22.5%. The healthy growth in customs collection has helped the overall FBR revenues positively.
It is evident from import data that around 59% of customs duty collection has been contributed by 10 major commodities grouped in Pakistan Customs Tariff (PCT) Chapters. All the major revenue spinners have exhibited positive growth in the collection during FY 2017-18. Vehicles (Non-Railway), the leading revenue spinner, has contributed 15.6% to the customs duty during FY 2016-17 and recorded a robust growth of 24%.
The POL products are the second major contributor of customs duty. During 2017-18 collection from POL grew by just 16% against 25.7% growth in dutiable imports. The collection from iron & steel, third major source of Customs revenue, recorded a growth of around 25%. Growth in the collection from machinery & mechanical appliances has been 9.4%.
The collection from electrical machinery recorded positive growth of around 19%, edible oil 13.1%, ceramic products 28%, plastic resins 59.2%, articles of iron & steel 1.8% and paper & paper board 22.4%.