FBR’s Customs Duty Collection Declined by 7.8% in FY23 Due to Import Restrictions

The customs duty collection has shown a decline of 7.8 percent during 2022-23 as compared to the same period of 2021-22 due to import compression.

The FBR’s data revealed that the customs duty collection during 2022-23 faced challenges due to declining imports. As a result, there was a negative growth of (7.8) percent compared to the previous fiscal year. The net collection of customs duty during 2022-23 stood at around Rs. 932 billion as compared to around Rs. 1,011 billion in 2021-22.

The customs duty’s share in the total FBR revenues also declined from 16.4 percent in 2021-22 to 13 percent during 2022-23. It is evident that there was negative growth in 4 sectors of the top 10 custom duty contributing sectors.

The collection from Vehicles (Non-Railway) showed negative growth of 51.0 percent followed by Electrical Machinery with 33.8 percent negative growth, Machinery and Mechanical Appliances with 26.0 percent negative growth and Iron and Steel recorded 17.3 percent negative growth.

The negative growths in these sectors have reduced their share in the overall customs duty collection to 22.4 percent during 2022-23 from 33.7 percent in 2021-22, FBR added.

Source: Pro Pakistani