ISLAMABAD: The concession of the Customs Duty (CD) on goods imported from the SAARC and ECO countries caused a revenue loss of Rs274million in 2017-18 against Rs73million in 2016-17. The CD exemption on the imports from China under the SRO No 659(I)/2007 caused a revenue loss of Rs31.415billion in 2017-18 against Rs31.618billion in 2016-17 as per economic survey.
The customs duty exemption on the imports from Iran under Pak-Iran PTA caused a loss of zero rupees in 2017-18 as compared to Rs4million in 2016-17. The customs duty exemption on the imports under the SAFTA agreement has underlain a revenue loss of Rs1.329billion in 2017-18. The customs duty exemption on the imports from Malaysia became a revenue loss of Rs2.674billion in 2017-18 against Rs1.983billion in 2016-17.
Exemption of duty on the imports made from Sri Lanka caused a revenue loss of Rs2.802billion in 2017-1 compared to revenue loss of Rs2.538billion in 2016-17. Exemption of duty on imports from Mauritius became a loss of Rs15million in 2017-18 against Rs27million in 2016-17.
The conditional exemption of customs duty on import of raw materials and components for manufacture of different sectors under the SRO No: 565(I)/2006 resulted in a revenue loss of Rs2.897billion in 2017-18 compared to Rs2.276billion during the corresponding period of the last fiscal year. The revenue loss has been increased by Rs0.621billion.
Similarly, exemption of customs duty and sales tax on the import of machinery, equipment and vehicles by the exploration and production (E&P) companies (SRO No 678(I)/2004) became a loss of Rs4.640billion against Rs6.282billion in the same period of the last fiscal year.
The exemption of customs duty for vendors of automotive sector caused a revenue loss of Rs18.899billion in 2017-18 as compared to Rs 17.668 billion in 2016-17 showing an increase of Rs1.231billion. The exemption of customs duty for Original Equipment Manufacturer (OEMs) of automotive sector resulted in a revenue loss of Rs35.030billion in 2017-18 compared to Rs21.827billion in 2016-17 reflecting an increase of Rs13.023billion. The exemption of customs duty on the import of cotton was Rs1.496billion in 2017-18.
