Rising Imports Fail to Achieve Customs Revenue Target

Despite a notable rise in imports, the Department of Customs has failed to meet its revenue target, collecting just 85.6 percent of the projected amount by mid-January of the current fiscal year.

According to data released by the department on Wednesday, it collected Rs 284 billion in customs revenue by mid-January of the current fiscal year 2025/26, against a target of Rs 332 billion for the period.

In the corresponding period of the previous fiscal year, the department had achieved 81.7 percent of its revenue target.

Imports increased by 13.68 percent year-on-year to Rs 1123 billion during the review period. Imports have been on an upward trend in recent years. Customs revenue accounts for nearly half of the country’s total revenue collection.

Kishor Bartaula, information officer at the department, said that although revenue has increased compared to last year, the collection has fallen short of the target.

“A large volume of goods enjoying tax exemptions enters the country. There are also goods imported under bank guarantees, from which revenue is not immediately realized,” he said. “Such goods are included in import statistics, but they do not generate revenue.”

According to the department, it has failed to meet its monthly revenue targets in any month of the current fiscal year.

The department has been assigned a total revenue collection target of Rs 588 billion for the ongoing fiscal year. In the previous fiscal year, it was given a target of Rs 582 billion but managed to collect only Rs 484 billion.