ISLAMABAD: The Federal Board of Revenue (FBR) has reported the collection of Rs180.54 billion in regulatory duty during the fiscal year 2023-24, marking a year-on-year increase of 4.3% compared to Rs173 billion in FY23.
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The uptick signals a strengthened policy stance aimed at curbing imports of non-essential goods while safeguarding domestic industries.
According to a report released this week, the FBR emphasized the importance of regulatory duty as a vital tool within Pakistan’s import taxation framework. This duty is levied primarily to discourage the inflow of luxury and non-essential items and to provide a competitive edge to the local industrial sector by shielding it from an overwhelming influx of imported goods.
The regulatory duty serves as a substantial component of the country’s overall import duty structure. During FY24, regulatory duty accounted for 16% of the total import duties collected, making it the second largest contributor after general customs duty. Import duty itself made up about 81% of the overall customs duty collection, which saw a healthy 19% rise over the previous year.
The total customs revenue remained heavily concentrated among 15 major product categories, collectively contributing about 75% of the customs duty collected. These key sectors witnessed a 21% increase in collections, largely due to a 13.4% surge in the value of dutiable imports.
Petroleum products (Chapter 27) emerged as the top contributor, generating nearly 29% of the customs duty collection—registering a 14% increase due to an 11.4% rise in dutiable imports. The automobile sector (Chapter 87) followed, accounting for 11% of customs duty, up from 9% in FY23. The auto sector showed remarkable growth of 42%, driven by a 26% rise in import value.
Significant gains were also observed in categories such as artificial filaments (64%), electrical machinery (38%), tea and coffee (32%), and oil seeds (30%)—all fueled by strong import growth.
Despite overall positive trends, the edible oil sector (Chapter 15) registered a decline of 13% in duty collection, primarily due to a 14% drop in dutiable imports.
The FBR continues to rely on regulatory duty not just as a revenue source, but as a strategic regulatory measure to manage trade patterns and protect national economic interests.
