Vehicle imports largest source of customs revenue
Sep 8, 2015-
Imports of vehicles and parts were the largest source of revenue for Nepal’s customs offices last year.According to the Department of Customs (DoC), customs offices earned Rs43.61 billion in import duty and taxes in 2014-15 from autos and auto parts.
The figure represents 25 percent of the total revenue collection by the customs offices. Their total collection last year reached Rs171.89 billion, excluding export duty, service charge and agriculture service tax which came to around Rs5 billion.
Ram Krishna Regmi, statistical officer at the department, said that vehicle import duty accounts for the largest portion of revenue collection almost every year. According to him, the government charges 80 percent customs on vehicle imports. Nepal imported vehicles and accessories worth Rs49.51 billion last year.
Vehicle imports are on the rise due to an expanded road network and increased incomes allowing more people to own automobiles. Automobile registrations surpassed all previous records in 2014-15.
According to the Department of Transport Management (DoTM), a total of 239,583 vehicles were registered in the fiscal year 2014-15, which is around 21 percent higher than in the preceding fiscal year. In fiscal 2013-14, the number of vehicles registered came to 198,343.
Registrations of almost all types of motor vehicles, namely bus, mini bus, mini truck, heavy equipment, car, jeep, van, pick-up, micro, tempo and motorcycle have swelled, according to the department’s stats.
Likewise, imports of petroleum products were the second largest revenue earner for the government after auto imports. The government collected Rs25.82 billion in customs duty and fees from the import of petroleum products, amounting to 15.02 percent of the total revenue collection. The country imported petroleum products worth Rs126.56 billion in the last fiscal year, according to the DoC. The share of iron and steel imports was Rs10.59 billion, or 6.16 percent of the total.
The country imported iron and steel worth Rs76.62 billion while exports amounted to Rs6.87 billion.
Electrical equipment including sound systems and television-related goods and plastic products came next in terms of being the largest revenue contributors.
The government collected revenue worth Rs9.35 billion (5.44 percent) and Rs6.41 billion (3.73 percent) respectively in customs duty and taxes from these two products.
Of the total revenue collected, Rs70.48 billion was import duty, Rs78.93 billion VAT and Rs22.47 billion excise duty.
The customs offices collected Rs70.48 billion in import duty on imports totalling Rs786.19 billion.
Petroleum products 15.02pc
Iron and steel 6.16pc
Electrical equipment 5.44pc
Published: 08-09-2015 09:10