Two major contributors of customs duty remained the petroleum sector and imported vehicles during 2023-24.
The Federal Board of Revenue (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 percent. 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 percent to the total FBR revenues for the current fiscal year.
The petroleum, oil, and lubricants (POL) sector remains the largest contributor to Customs Duty, accounting for 29.1 percent of the total and witnessing a 14.1 percent growth in collection during 2023-24. Vehicles were the second largest contributor, with an 11.0 percent share and a significant 42.0 percent increase in collection. Conversely, the collection from edible oil saw a decline of 12.7 percent, which was attributed to a 13.9 percent decrease in imports.
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.
Dutiable imports saw an increase of 13.4 percent, and correspondingly, customs duty collections rose by 17.0 percent, reflecting a robust relationship between import values and duty collections, FBR added.
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