10 imports accounted for 38pc of customs revenue

KATHMANDU, MAY 02 -

Ten imports accounted for 37.70 percent of the customs revenue during the first nine months of the fiscal year. The top revenue generators were motorcycles, cars, bus and truck chassis, diesel, LPG, MS billet, betel nuts, cement, petrol and coal, in that order.

According to the Department of Customs, these products contributed Rs 37.71 billion out of the total collection of Rs 98.83 billion in value added tax (VAT), excise duty and customs duty.

Motorcycles generated the highest amount of revenue for the government by way of import taxes amounting to Rs 7.88 billion. Jeeps, cars and vans stood second while high-speed diesel and petrol stood third and fourth respectively in terms of revenue contribution. LPG is the fifth largest contributor to customs revenue.

The growth in revenue collection from the automobile sector is due to the surge in vehicle imports. According to the Department of Transport Management, vehicle registration increased by 24 percent in the first nine months of the current fiscal year.

Automobile traders attributed the growth in vehicle imports to a decline in the bank interest rate on auto loans. According to them, the interest rate has come down to around 12 percent from 18 percent.

“The opening of rural tracks contributed to pushing up sales of motorbikes in markets outside the Kathmandu valley resulting in higher imports,” said Saurav Jyoti, president of the Nepal Automobile Dealers’ Association (NADA).

He added that there was a massive growth in the import of Indian vehicles in the price range of Rs 2 million to Rs 2.5 million. However, imports of vehicles in the luxury segment, especially from third countries, declined during the period, he said.

Meanwhile, the highest growth in terms of revenue contribution was recorded by betel nuts with a whopping jump of 122.3 percent. Taxes on the import of betel nuts amounted to Rs 375 million during the review period.

Director general of the Customs Department Mukti Narayan Poudel said that despite the department’s move to discourage imports of betel nuts, shipments continued to soar. Betel nuts are imported from third countries and reexported to India after being repackaged under local brands. “We have increased the valuation rate for betel nuts by 100 percent,” he added. On the other hand, there has been severe decline in the revenue contribution from other ten items including, iron, crude palm oil, cigarette, colour TV and garlic, among others.

Source: The Kathmandu Post