RECORDER REPORT
ISLAMABAD (February 28 2007): The customs duty collection on the import of vehicles showed a negative growth of 9.1 percent during July-December 2006-07, while total imports and dutiable imports of vehicles showed decrease of 2.3 percent and 9 percent, respectively, during this period.
A detailed analysis of the automobile sector shows that it continues to be the mainstay, contributing around 21 percent of gross customs duty collection in July-December 2006-07). The import of motor cars and jeeps (PCT heading 87.03) appeared to be playing a pivotal role in the collection of customs duty from this sector.
According to the revised baggage rules announced in the 2006-07 budget, restriction has been imposed on the import of old and used vehicles of more than 3 years age. As a consequence, the import of vehicles in CBU condition fast decelerated as compared to last year.
The growth in the number of motor cars and jeeps in CBU condition has been only 2.6 percent, while import value declined by 34.7 percent. Resultantly, a reduction of Rs 1.7 billion was observed in customs duty during this period. This decline was mainly due to less imports of jeeps and motorcars.
Elaborating further, a loss of Rs 280 million has also been recorded during July-December due to exemption of agriculture tractors in CBU condition in the budget.
Copyright Business Recorder, 2007