31 per cent growth in revenue collection
KARACHI: A fabulous growth was recorded in revenue collection at the customs stage during the out-going fiscal year at Rs685 billion which stood 31 per cent higher over last year when collection stood at Rs523 billion.
According to official figures, all the collectorates of customs were able to jack up customs duty collection by up to 125 per cent at Rs347 billion against last fiscal collection of Rs154 billion.
However, officials admitted that this was mainly due to devaluation of rupee and higher imports which resulted in collection of more duty and taxes at the customs stage.
The value of dutiable imports during 2011-12 was higher at Rs1,677,736 as against Rs1,484,817, resulting in more revenue collection at customs stage, customs officials said.
Though higher imports against lower exports have resulted in adverse balance of trade, it turned out to be a bonanza for revenue collectors because it helped the Federal Board of Revenue (FBR) to narrow the target gap of revenue budget for 2011-12.
Moreover, there had been a high growth in value of duty free imports at Rs2,343,183 as against Rs1,884,187 of last fiscal year.
However, all other taxes are collected on these imports at customs stage.
The value of total imports during the out-going fiscal year stood at Rs4,020,920 or 19 per cent higher over last fiscal year when total imports stood at Rs3,368,004.
The collection of sales tax at the customs stage also made a growth of 40 per cent at Rs379bn from Rs271 billion achieved in the last fiscal year.
Similarly, collection of income tax also rose by 32 per cent at Rs85 billion from Rs65 billion last fiscal year.
The collection of federal excise duty (FED) at customs stage during 2011-12 increased to Rs57,752 million from Rs32,029 million recorded in last fiscal year.
Customs sources said that even on having Free Trade Agreement (FTA) with China, revenue collection, particularly customs duty remained on the higher side.