Auto, parts imports highest contributor
- Customs revenue
Aug 21, 2016-
Imports of vehicles and accessories contributed the most to the customs revenue collection last fiscal year.
Customs offices raised Rs60.46 billion in import duty, VAT and excise duty from vehicle imports in 2015-16, up 38.63 percent year-on-year, according to the Department of Customs (DoC). Of the total import revenue collection of Rs192 billion, automobiles and parts imports contributed 31.42 percent.
DoC Director General Shishir KumarDhungana said vehicle import duty accounts for the largest portion of the revenue collection every year because of relatively high duty rates. “Moreover, the imports surged in the last three months of the fiscal year after facing a backlog during months-long trade embargo,” he said.
According to dealers, the auto industry witnessed high growth last year despite the four-month-long blockade that crippled imports. Vehicle imports are on the rise because of four major drivers—excess liquidity with banks, high inflow of remittance, opening of new routes across the country and changing consumer buying behaviour, they said.
According to the Department of Transport Management, a total of 343,765 vehicles, 43.48 percent higher than preceding fiscal, were registered in 2015-16. Registrations of almost all types of motor vehicles—bus, mini bus, mini truck, heavy equipment, car, jeep, van, pick-up, micro, tempo and motorbikes and scooters—swelled, according to the department. Vehicles worth Rs66.2 billion were imported last year, according to the DoC.
Petroleum imports came second, with the government collecting Rs20.06 billion (10.43 percent of the total revenue collection) in customs duty and fees. Due to lower fuel imports as a result of the Indian embargo, revenue collection from the sector decreased by around 5 percentage points from a year ago. The country imported petroleum products worth Rs85.1 billion last fiscal year, down from the previous year’s Rs126.5 billion.
Published: 21-08-2016 08:54