KARACHI: More used cars were imported during the first 74 days of the current fiscal year ending September 12, statistics compiled by Model Customs Collectorate (MCC) of Appraisement-East under supervision of Collector Najeeb-ur Rehman Abbasi revealed.
A total of 2,350 used cars were imported during July, August and the first 12 days of September depicting an increase of 67 per cent over 1,408 units of used cars imported during the first three months- July, August and whole of September- last year.
With 18 more days remaining in this month the volume of used car imports by this month is bound to depict a much bigger increase not only in terms of import value and revenue realization but also volume which already depicted a robust 67 per cent increase till September 12.
The increase in the volume of used car imports, the numbers of which totaled 2,350 during the first 74 days of this year has also pushed the revenue realization by 37.36 percent to Rs 1.750 billion including Rs 1.064.5 billion in Customs Duty; Rs 446.55 million in Sales Tax and Rs 239.35 million in Income Tax. The total revenue realization from the imports of 1,408 used cars during the first three months of July, August and the whole of September 2013 was Rs 1,274.89 billion including Rs 749.29 billion in Customs Duty; Rs 364.6 million in Sales Tax and Rs 161 million in Income Tax.
The Customs Duty realization during the comparative period depicts a substantial increase of 42 percent. During the comparative period under discussion the total import value of used cars registered an increase of 21.5 percent- Rs 1,503.68 billion till September 12 this year compared to Rs 1,237.10 billion during July, August and the whole of September last year. This lesser 21.5 per cent increase in the total import value when compared to 67 per cent increase in volume; 37.36 percent increase in overall revenue realization including a 42 percent increase in Customs Duty alone could mean that most of the used vehicles imported into the country during the first 74 days of the current fiscal year were small engine capacity cars that are subjected to comparatively lower duties and other taxes compared to bigger engine capacity counterparts.
One interesting aspect of the statistics is that the total revenue realization of Rs 1750.35 from the import of 2,350 used cars imported during the first 74 days of the current fiscal year was more than their combined value of Rs 1,503.68 million- that is Rs 246 million in term of number and nearly 16.4 per cent in term of percentage.
The trend follows the pattern during the comparative full first three months last year when import of 1,408 used vehicles having a combined import value of Rs 1,237.10 million contributed total revenue realization of Rs 1,274.89 million.
