Record revenue collection of Rs99.7bn by Customs

QUETTA: The Collectorates of Customs in the jurisdiction of office of the Chief Collector Balochistan, Quetta has set a new record and collected historic revenue amounting to Rs 99.7 billion in FY 2021-22 which is 53 percent more than the revenue collected last year.

Compared to last year where Rs 65 billion revenue was collected, Balochistan region collected record revenue of almost Rs 100 billion i.e. Rs 35 billion more. Rs 34.7 billion above than the revenue of Rs65 billion collected during the previous FY 2020-21 resulting in 53 percent increase in revenue collection when compared with the last year.

The Collectorates have collected Customs Duty amounting to Rs.18.2 billion against FBR’s assigned target of Rs 22.9 billion despite the prevailing administrative and security challenges in Balochistan and the issues faced. The major challenges in collection of customs duty were that during the period under review, Chaman border remained closed for almost two months due to Taliban take-over and subsequent political uncertainties. This closure happened at the peak time of seasonal import of fruits like pomegranates, grapes, apples and melons etc. which are major revenue spinners of the Collectorate.

Disruption and diversion of the trade during this period caused major revenue loss to the Collectorate of Customs Appraisement, Quetta. Bazarcha was a second import gate / crossing point adjacent to the Custom House, Taftan for Iranian import. The bulk import from this point included ceramic tiles, clinker, dates, cement etc. However, Bazarcha was closed for trade by the Federal Government in June 2021. Resultantly, the bulk items earlier imported through this point were no more brought via this gate due to multiple factors. This also resulted in substantial reduction in import from Taftan and has ultimately impacted revenue collection.

The comparative data of major dutiable imports for the current as well as last financial year were analyzed which reveals considerable reduction in import of these items like Pistachio, Mesh Net Fabric, Nylon Rope, Almond, Dry Grapes, Cashew Nut, Cumin Seed, Glassware, Nylon Dyed Mesh Net, Green Tea, Fabric that are subjected to Customs Duty. There were duty structure revised on White Spirit PCT 2710.1240, which is a major revenue spinner of the Collectorate of Customs, Appraisement, Quetta. This has resulted in overall decline in Custom Duty collection to a greater extent. Besides white spirit, duty has also been brought down to zero on Methyl Hexonic acid.

The rate of Customs duty on import of LPG is zero. The quantum of LPG import and allied items constitutes up to 50 percent of the total imports of the Collectorate in terms of value. The import of LPG is further expected to increase since demand for LPG increases even more in winters. But since the rate of customs duty on this item is zero, therefore, it does not contribute to the CD collection figures of the Collectorate.

On anti-smuggling side the Enforcement Collectorate as well as Collectorate of Customs Gwadar has made commendable seizures of smuggled and contraband goods. During the period 2021-22, Rs 13.4 billions value seizures were affected, despite extensive geopolitical area and constraints of HR and logistics. The Gwadar Collectorate contributed Rs 61.4 billion in revenue, however, major importsare of POL cleared by M/s. BYCO, ship breaking and bulk coal.

The Collectorates performed exceptionally well under the guidance of Syed Muhammad Tariq Huda, Member Customs Operations, and active supervision of Muhammad Sadiq, Chief Collector of Customs, Balochistan. The efforts of the Collectorates were acknowledged and recognised by FBR (Customs) and rewards for rendering meritorious services to the officers and officials of the Collectorates were allocated.—PR