Pakistan’s custom duty revenues increased by 21% – Research Snipers

Pakistan’s custom duty revenues increased by 21%

Intelligence and Investigation

During the financial year FY-2017-18 The customs appraisement-south has successfully collected a duty of Rs.454 billion, there was a strong growth in revenues this year as compared to the previous Rs.377 billion during the financial year 2016-17. There was whopping 21% increase in the revenues.

The customs revenue has been showing a positive trend in the last few years, the growth has shown almost 100% from the year 2014-15 when the total revenue collected was Rs.231 billion.

The total revenue collected in duties and taxes by Customs Appraisement-South stood at Rs.1239 billion up by 16.89 percent from the previous 1060 billion collected during the FY-2016-17, according to the sources the current revenue collection is about one-third of FBR’s total revenue.

According to ARYNews, the increase in revenue collection reflected over the past few years is due to improved customs systems, improvisation and better management, Chief Collector of the department Appraisement-South Abdul Rashid Sheikh appreciated the hard work of its employees. He also focused on maintenance and continuous improvement for the next financial year.

There is no doubt that employee’s hard work has paid off and contributed to revenue growth but that is not always the case as ARY reported. The customs revenue heavily relies on imports, the growing trend of imports has pushed the customs revenues up, increasing imports in the country is not a good sign for the economy, Fitch Ratings, a financial ratings global firm has warned Pakistan on Tuesday about its long-term economic policies, growing imports as compared to exports, widening current account deficit, fast depleting foreign reserves and external debt could slow down the economy and create troubles for future growth.

In terms of revenue collection, it seems economically sound to have increased revenue for the government but it also creates problems at the macro level, customs revenue increase is not something to boast about, it is a serious concern for the country’s economy something similar to increase debt or loans.

Similarly, Model Customs Collectorate (MMC) Port Qasim was able to add Rs155 billion to the national exchequer, which as almost up by 19.2% as compared to the previous year when revenues stood at Rs130 billion.