950830

Customs duty

collection up

Rs 250m this

month

MUZAFFAR QURESHI

KARACHI: Revenue from Customs duty was up by Rs. 250 million during the month of August as compared to the corresponding month of the last year. Customs duty collected during July 1995 was Rs. 3320 million as compared to Rs. 2890 million in the corresponding period last year.

Sources at the Collectorate of Customs (appraisement) told Business Recorder that the increase in revenue from duty has been possible, despite sharp fall in imports during the month of July and August. The port authorities have reported majority of berths unoccupied these days.

One of the reason for decline in imports, sources opined, was fall in international prices of plastic material, which dropped by 30 to 40 percent. Majority of the importers instead of clearing their plastic goods preferred to keep them in bond hoping for further decline in prices, and consequent reduction of duty.

Sources further said that the import of machinery also registered a sharp fall due to scrapping of incentives for the duty free import through SROs 791 and 484.

Sources attributed the 100 percent increase in withholding tax - from 2 to 4 percent - on all imports another major reason for decline in imports.

Sources maintained that most of the importers perfer to import goods in the last week before the budget and transfer the same to the bond. As many as 20,000 bills of entry were received in the period. The goods can be cleared within seven days of the filing of bill of entry on the old rates of duty notwithstanding the new rates announced in the Budget. This also affects revenue collection in the months of July and August.