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 & Mechanical Appliances with 26.0 percent negative growth and Iron & 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.