Revenue collection on imports decline in July 2014
KARACHI: The overall Customs duty collected during the month of July 2014 stood at Rs14.687 billion down 7.24 percent from Rs15.835 collected in July 2013 as the long Eid holidays took its toll on every economic sector as well as the revenue collection. The country imported goods worth Rs305.039 billion during the month on which Customs authorities collected import duty of Rs14.687 billion translating into an effective duty rate of 4.81 percent; sales tax collected stood at Rs33.492 billion i.e. effective tax rate of 10.97 percent while in the same month last year country total imports stood at Rs411.252 billion on which duty of Rs15.835 billion was collected translating into effective duty rate of 3.85 percent; sales tax collection on imports stood at Rs34.936 billion i.e. effective tax rate of 8.49 percent. During July 2014, dutiable imports stood at Rs148.738 billion as against duty-free imports of Rs156.301 billion while in July 2013 dutiable imports stood at Rs144.178 billion as against duty-free imports of Rs267.073 billion. The products on which Customs duty collection declined drastically include Palm oil and its fractions as its declined from Rs14.943 billion in July 2013 to Rs3.669 billion in July 2014, consequently Customs duty collection also declined by Rs1.153 billion; import of motor vehicles declined to Rs3.007 billion in July 2014 as against Rs5.905 billion in July 2013 while duty collection on these products declined by Rs475 million. Other products whose imports and consequent revenue collection declined include flat-rolled products of iron or non-alloy steel, motor vehicles parts, polymers of propylene and other olefins, woven fabrics of cotton, uncoated paper and paperboard, tea, footwear and synthetic filaments of yarn.