KARACHI: Pakistan Customs collected customs duty to the tune of Rs200.276 billion for the year ended June 30, 2014 against the dutiable import of Rs1,832 billion accounting for effective duty rate of 10.93 percent against dutiable import.
The performance for the fiscal year 2013-14 is relatively meager versus the last fiscal when the Customs had collected Customs duty of Rs195.454 billion against the dutiable import of Rs1,767 billion translating into effective duty rate of 11.06 percent against dutiable import.
The decline in the effective duty rate can be attributed to the strengthening Pak Rupee against the US dollar.
The dutiable import during 2013-14 stood at Rs1,832 billion surging by 3.67 percent against dutiable imports of Rs1,767 billion. The customs duty collection this fiscal stood at Rs200.276 billion increasing by 2.46 percent.
It may be mentioned here that the Customs as well as the FBR took a number of measures and reforms against mis-declaration and under-invoicing which resulted in increased revenue collection during the outgoing fiscal year.
The Customs also collected sales tax of Rs442.138 billion; income tax of Rs118.241 billion and CED of Rs38.510 billion during the fiscal year 2013-14 against overall imports of Rs4,780 billion.
As far as MCC South Region is concerned, the customs duty collection stood at Rs164.431 billion; sales tax collection at Rs374.141 billion; income tax collection at Rs100.975 billion while CED collection stood at Rs34.26 billion.
The numbers for the fiscal year 20121-13 suggest that Customs had collected sales tax of Rs379.459 billion; income tax of Rs103.736 billion and CED of Rs34.250 billion.
A senior FBR officer told Customnews.pk that the allegations leveled by the Inland Revenue Service that the Customs had undertaken some sort of manipulation to show higher revenue collection were baseless adding that the entire system was computerized and no such manipulation could be practiced.
The officer also endorsed the views of Dr. Shoib Sadal former FTO that IRS and Customs should have separate chairmen. And both Customs and IRS should be assigned separate targets while collection of all revenue on import stage should be exclusive domain of Customs. IRS should be assigned revenue collection on supply only.