Customs aims highest revenue target amidst import rackets
View(s):Customs is striving to reach the highest revenue target in its 117 year history amidst inconsistent tax policy and under invoicing of unscrupulous importers and traders, the department’s official sources revealed.
It is also noted that for the purpose of avoidance of under-invoicing and under-evaluation of importation of goods, a specific unit rate of duty (example: per kg amount) as well as mixed rates of duty have been applied within the three-band tariff system literally.
The department has achieved the 100 per cent target of Rs. 353 billion in the first quarter of 2024, a senior high official of Customs said adding that the Treasury had fixed a revenue target of Rs. 1,537.46 billion for the whole year.
This achievement was due to increased imports and tax revenue during festive seasons as well as the government’s stance to remove all para-tariff in line with the suggestions of the World Bank.
The World Bank and local economists have noted that the current duty structure of the country is an anti-export bias import duty structure.
It has advised to remove the anti-export bias tariff policy by streamlining all border taxes to increase the export revenue of the country.
At present the export market is facing numerous issues owing to constant changes in the tariff policy, and there is no common policy framework in place for the importation and exportation of goods, the Parliament’s Ways and Means Committee’s recent report indicated.
Despite the current import regulations, an unregulated illicit circuit in importing goods has been discovered by the committee in its latest investigations.
This revelation came to light during the examination of the liquor production process, exposing a notable discrepancy between the imported and domestically produced ethanol, the report disclosed.
Also consumers had to bear a huge cost for buying imported essential food items such as big onions, potatoes, dried sprats, Maldive fish and green gram particularly in the years 2022 and 2023 and the traders earned an excessive amount of profits.
Traders earn a profit ranging from Rs.100 to Rs. 1000 per kilo of these items when the market prices of these items were taken into consideration.
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