MULTAN: The Customs Collectorate Multan has cleared 277 million liters high speed diesel (HSD) ex-bonding in the first quarter of the on-going Fiscal Year 2016-17.
The Collectorate of Multan Customs is the second largest revenue generation collectorate of the Customs after Karachi and its major import includes HSD which contributes almost 98.5 % in the import clearance of the Multan Customs.
The revenue generation of the Multan Customs is facing decline in revenue collection due to less clearances of HSD consignments in the first quarter of the fiscal year 2016-17.Due to less clearance of import shipments, Multan Customs have collected less customs duties from their average collection.
The Customs Collectorate Multan have collected customs duty of Rs.844 million from import clearances of 277 million liters HSD during the first three months of the fiscal year 2016-17. While Multan Customs had collected customs duty of Rs.1769 million from clearance of 396 million liters HSD during the matching period of the fiscal year 2015-16.
The average price of the High Speed Diesel in the first three months of the current fiscal year in international market was Rs.38, Rs.36 and Rs.37 per liter in July, August and September respectively. Whereas the average prices of the High Speed Diesel in the first three months of the previous fiscal year 2015-16 in the international market was Rs.49,Rs.48 and Rs.44 in the first three months of July, August and September correspondingly.
The customs duty collection also dropped with the decline in the international prices of the High Speed Diesel. The revenue generated by the Multan Customs is also dependent on the international prices of High Speed Diesel. The Customs Collectorate Multan have witnessed drop fall of 119 million liter High Speed Diesel during first three months of the current fiscal year 2016-17.
The government have adjusted the proportion of the sales taxes by implementing 28% in July, 35 % in August and 43% in September in their tax collections. The Customs Collectorate is facing decline in their revenue collection due to less clearance of HSD and the average prices of the HSD has also been dropped from the previous year.
Multan Customs have adopted a comprehensive strategy for the growth of their revenue generation and they have started analyzing the import clearances of the HSD from other collectorates to draw the exact picture of the collectorate.
