Only four items including petroleum, automobile, edible oils and machinery contributed around 45 percent of total customs duty during July-March 2010-2011. The FBR data issued here on Monday revealed that ten major sectors contributed around 2/3rd of the customs duty during this period. Automobile has been the top revenue generation source of customs during 2010-11.
The collection from automobile has improved substantially by 20.3% during July-March 2010-11 mainly due to a robust increase of 27% in the dutiable imports. Major part of customs duty has been contributed by the import of motor cars/jeeps (PCT 87.03). The dutiable import of motorcars/jeeps has gone up by 13.9% which has enhanced the collection of customs duty by 15%. Moreover, the dutiable imports of motor vehicles for transport goods has also gone up by 27% and its collection of CD has enhanced by 31% during July-March, 2010-11 as compared to corresponding period last year.
The FBR said that the collection increased by 9.2% from edible oils (CH:15). The dutiable imports have increased by more than 58% in edible oil. The mismatch between the collection and growth in the dutiable imports has been due to specific rates of duty. The collection of customs duty has been mainly fetched from the import of palm oils, ie, palm olien RBD palm oil and crude oil. A significant decline in the imported quantity of RBD during July-March 2010-11 has badly affected the collection of customs duty by 85%.
The significant growth in imported quantity of crude oil and palm olien by 42% and 83%, respectively, have vastly improved the collection of customs and compensated for the loss of revenues from RBD palm oil. As far as the machinery is concerned, the dutiable import of mechanical apparatus has declined by 5% while collection grew by 3.5% during July-
March 2010-11. It is due to growths in the imports of engines and pumps have declined by 16.8% and 8.1% while the collection grew by 9% and 7.4%, respectively. On the other hand, the collection from electrical machinery has recorded reduction by 1.2% due to decline in the dutiable imports. The dutiable import of iron and steel (CH:72) has dropped marginally while the collection of customs has increased insignificantly during July-March
2010-11; the remaining major items improved their collection of customs duty due to growth in the dutiable imports, FBR data added. The FBR stated that the collection under customs duty has registered a growth of 14.8% and 13.5% in gross and net terms, respectively, due to 14% growth in dutiable imports. The gross and net collection has increased from Rs 116.2 billion and Rs 111.7 billion during July-March 2009-10 to Rs 133.5 billion and Rs 126.8 billion during July-March 2010-11.The difference between the gross and net collection is due to Rs 2.1 billion lesser payments of refunds/rebates. Major revenue spinners of customs duty have been automobiles, edible oil, petroleum products and machinery, etc.