Staff ReporterTuesday, April 23, 2013 - IslamabadóDespite only 3.4 percent increase in dutiable imports during July-March (2012-13), the Federal Board of Revenue has made record collection of customs duty of Rs 168.314 billion during this period against target of Rs 150.960 billion for first nine months of 2012-13, reflecting 111 percent growth.
The growth of 111 percent in customs duty collection during July-March (2012-13) is a remarkable achievement of the FBR. This is a historic achievement of the assigned target where 111 percent increase has been witnessed despite merely 3.4 percent increase in dutiable imports. The credit goes to Mohammad Riaz FBR Member Customs and his team of collectors, who worked day and night to surpass the assigned target despite nominal increase in dutiable imports during the period under review. At present there are no surcharges or additional customs duties on imports. However, the historic achievement has been witnessed during the period under review. This is for the first time that the dutiable imports are declining whereas customs duty collection is increasing day but day during 2012-13. The supervision of the FBR Member Customs at the Boardís level with coordinated efforts of Collectors of Customs resulted in such an historic event of increase in duty collection with declining dutiable imports.
The data revealed that the FBR has assigned annual target of Rs 222 billion of customs duty for 2012-13. The collection amounted to Rs 168.314 billion, leaving a balance of Rs 53.686 billion during 2012-13. Keeping in view of unprecedented growth in customs duty collection, the FBR would be able to amass the annual target of Rs 222 billion by the end of current fiscal.
The FBR has collected Rs 168.314 billion during July-March (2012-13) against Rs 147.580 billion in the corresponding period last fiscal, depicting a growth of 14 percent. The administrative and enforcement actions have successfully generated a huge amount of Rs 20 billion during this period.
Sources said that the FBR has fixed the budgetary target of customs duty taking into account 18 percent expected growth in dutiable imports during 2012-13. On the other hand, the value of dutiable imports went into negative for few months and it stood at 3.4 percent upto March 2013.
The question arise that how the customs authorities amassed 111 percent growth in collection despite nominal dutiable imports during this period? The Board has been able to the improve collection through better management, monitoring and effectively checking leakage of revenue. Moreover, the misuse of the SROs has been effectively controlled at the import stage.
The FBR has been able to improve valuation of goods with better classification at the import stage. The customs authorities have also focused on the DTRE scheme and mis-declarations at the import stage.