Duty collection from major revenue spinners shows negative trend

RECORDER REPORT

ISLAMABAD: The collection of customs duty from major revenue spinners, ie, automobile, machinery, organic chemicals, iron & steel and plastics and articles thereof has shown a negative trend during July-December (2019-20) as compared to same period of 2018-19.

According to the FBR’s data, the customs duty constitutes 24.9 percent and around 15.6 percent of the indirect taxes and federal taxes respectively. The net collection during July-December, 2019-20 has been Rs 326.6 billion against Rs. 336.0 billion in the corresponding period of last year entailing a negative growth of 2.8 percent. The declining national imports have affected the customs revenue significantly.

Customs duty from major revenue spinners revealed that a major chunk of customs duty has been derived from 10 major commodities grouped in the Pakistan Customs Tariff (PCT) Chapters. Out of ten major items, five have exhibited a negative growth in customs collection. The collection from automobile (Ch: 87), one of the leading revenue spinners, has recorded a (-) 36.8 percent, machinery (-) 19.7 percent, Organic chemicals (-) 14.8 percent and iron & steel (-) 7.9 percent and plastics and articles thereof (-) 0.1 percent, the FBR data added.