KARACHI: Collection of customs duty on imported items is reportedly low against the target set by FBR due to lesser imports. This has in turn affected the overall revenue collection during fiscal year 2013-14.
Collection of customs duty was Rs 19 billion in January 2014 against Rs 18 billion in January 2013. In the period from July to January in the current fiscal year, collection of customs duty was recorded slightly over Rs 129 billion against Rs 126.178 billion in the same period of previous fiscal year.
Sources said that the potential of the customs duty collection is 2 to 3 times more as compared to the existing trend. Dutiable imports have definitely decreased having negative impact on customs duty collection. However, collection of sales tax, FED and withholding taxes have witnessed a major increase.
Tax authorities have reportedly said that less growth of dutiable imports was mainly due to high percentage of non-dutiable imports, citing that 66 percent of the imports were non-dutiable because of Free Trade Agreements (FTAs), Preferential Trade Agreements (PTAs) and zero rating. While only 34 per cent imports were being levied duties and the statistics had shown only two per cent of growth in terms of rupee. That was why the growth up to Customs target was yet to be achieved and the efforts were well underway to achieve the target within remaining five months of FY 2013-14.
Low import volume has also affected collection of other federal taxes at the import stage. For example, the collection of the sales tax and withholding tax on imports are affected.
