Customs duty that is to be charged on imported vehicles remained the top revenue earner during the period of the 2017-18, contributing as much as Rs 97.094 billion to the national exchequer during the course of the 2017-18 as against Rs 78.313 billion in 2016-17 that is reflecting a growth of 24%.
Imported Cars Help Raising Customs Duty Revenue By 24% To Rs.97.094 Billion
The Federal Bureau of Revenue’s (FBR) analysis of customs duty (2017-18) on top of the Year Book 2017-18 revealed that the contribution of customs duty from imported vehicles has increased from the range of around 15.4 percent in 2016-17 to 15.6 percent in 2017-18. FRB did even stated that the customs duty constitutes around 26% and 16% of the indirect taxes and so as with the federal taxes respectively. The share of customs duties in FBR collection is counted to be gradually increasing.
The net collection from customs duty during the course of the FY 2017-18 has been Rs 608.3 billion indicating growth of 22.5%. The healthy growth in customs collection has helped the overall FBR revenues on the positive terms. It has been all unveiled out that the import data that has been almost 59% of customs duty collection has been contributed by 10 major commodities grouped in Pakistan Customs Tariff (PCT) Chapters. All the major revenue spinners have been on the whole exhibited positive growth in the collection during FY 2017-18.
The POL products are mentioned out to be the second major contributor of customs duty. During the year 2017-18 collection from POL grew by just the range of around 16% against 25.7% growth in dutiable imports. The collection from iron & steel that is stated to be the third major source of Customs revenue, recorded a growth of around 25%. Growth in the collection from the category of the machinery & mechanical appliances has been 9.4%. The collection from electrical machinery recorded positive growth of around 19%, edible oil 13.1%, ceramic products 28%, plastic resins 59.2%, articles of iron & steel 1.8% and paper & paper board 22.4%.
The customs duty on imported vehicles has been all set to be increased from 15.4 percent to 15.6 percent between the year of 2016-17 and till the year 2017-18 according to the reports by the Federal Board of Revenue (FBR). The indirect taxes has been on the whole remained 26% and federal taxes as 16% during this tenure. According to the import data stats, there has been around the range of the 59 percent of overall customs duty that was collected on 10 major commodities in Pakistan Customs Tariff (PCT). Vehicles were reported contributing 15.6 percent to the customs duty during the year 2016-17 which is raised to 24 percent during the course of the financial year 2017-18.
Just as looking at the 2016-17 stats, the revenue generated by the imported cars was around Rs.78.313 billion. With the increasing trend of aspects of the buying imported cars, more cars were imported this year as compared to the previous year. Federal Board of Revenue (FBR) earned an amount of the record-breaking Rs.97.094 billion in the year 2017-18 through customs duty on the import of cars.