Official data released on Monday indicates a remarkable upswing in the collection of customs duty from imported vehicles during the fiscal year 2020/2021, reflecting a staggering 95 percent growth, reaching Rs111 billion. This surge is in stark contrast to the Rs56.85 billion recorded in the preceding year.
The customs duty collection from imported cars held the top position among imported goods, marking a significant improvement in its share within the total customs duty collection. The share of duty collection from imported cars rose to 14.3 percent during fiscal year 2020/2021, up from 8.9 percent in the previous year.
In comparison, the collection of customs duty from petroleum products witnessed a growth of 13.3 percent, totaling Rs94.28 billion during the fiscal year 2020/2021, compared to Rs83.22 billion in the preceding fiscal year.
The Federal Board of Revenue (FBR) reported an overall collection of Rs748 billion during the fiscal year 2020/2021, reflecting a notable 19.3 percent increase from the Rs627 billion recorded in the corresponding period of the last fiscal year.
The growth in customs duty collection was attributed to a 22.1 percent increase in dutiable imports, contributing to a 28.1 percent growth in Customs Duty collection for major fifteen revenue-generating sectors. Notably, the automobile sector recorded a remarkable 95 percent growth, primarily fueled by a massive increase of 107.5 percent in dutiable imports, while duty-free imports saw a 39 percent decline.
The collection of Customs Duty from petroleum products and iron and steel also exhibited positive growth, driven by increased dutiable imports.
Despite a lowering of tariffs over the years, Customs Duty remains a crucial source of federal tax collection. The FBR highlighted that dutiable imports constituted 59.1 percent of total imports during 2020-2021, indicating a significant portion of duty-free imports. Duty-free imports also increased by approximately 42 percent, surpassing the growth rate in dutiable imports.
The net collection of Customs Duty stood at around Rs748.4 billion, contributing approximately 25 percent to indirect taxes and 16 percent to federal taxes during 2020-2021. This marks a 19 percent improvement compared to the previous year, aligning with the growth in dutiable imports.
The Customs Duty target for 2020-2021 was set at Rs700 billion, and this goal was surpassed by around 7 percent, signaling a robust performance in revenue generation from customs duties.
