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Duty-free imports increase by 18.5pc

Duty-free imports increase by 18.5pc

ISLAMABAD: Duty-free imports and dutiable imports have shown an increase of 18.5 percent and 1.5 percent, respectively during first quarter of current fiscal year.

Around 34 percent of the total imports have been dutiable while the remaining portion is duty-free. Moreover, duty-free imports have improved strongly by 18.5 percent while dutiable imports grew by only 1.5 percent.

The quarterly report highlights that 10 major revenue spinners have contributed around 70 percent to the dutiable imports and 68 percent of total imports. Similarly, 53 percent customs duty has been realised by these sectors during first three months of current fiscal.

Automobile has been the top revenue generator of customs duty during first quarter of 2013-14. However, the collection of customs duty from automobiles has reflected a decline of 24.7 percent against negative growth of 23.1 percent in dutiable imports.

Edible oil has been the second major source of collection of customs duty. It grew marginally. Edible oils are subject to specific customs duty. A growth in the collection of mechanical machinery has been recorded against a growth of 19.1 percent in the dutiable imports. Around 50 percent of value of imports of mechanical machinery is dutiable value of imports and remaining is duty free. Electrical machinery registered a reduction of 11.1 percent in the collection of customs duty.

The collection of customs duty from petroleum products has manifested a growth of 27.6 percent against 3 percent growth in the dutiable imports. The growth in the collection of customs duty from POL products is mainly driven by 33 percent growth in the collection of customs from HSD. Interestingly, only 11.9 percent of the import of petroleum products is dutiable while remaining is duty-free. All the major energy items of petroleum products except HSD are out of the customs duty net.

The collection from iron and steel has come down by 25% which can be attributed to decline of 30.7 percent in the dutiable imports during first quarter 2013-14. All the remaining items of 10 major spinners of customs grew their collections due to growths in the dutiable imports, according to the report.