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Thursday, July 19, 2018

‘Customs revenue stagnant at 1.7% between FY’03 & FY’12’

The revenue collection from customs has not grown in tandem with rising imports.

Written by Express News Service | New Delhi | Published: August 14, 2013 3:02:26 am

Customs revenue as a ratio of the gross domestic product (GDP) was stagnant at around 1.7 per cent between 2002-03 and 2011-12. Moreover,the revenue collection from customs has not grown in tandem with rising imports,a report of the Comptroller and Auditor General (CAG) said.

According to the compliance audit of the customs department report tabled in Parliament today,even though the revenue from customs as a percentage of indirect taxes rose from 33.89 per cent in 2002-03 to 38.27 per cent in 2011-12,it remained stagnant at an average of 1.7 per cent of the GDP during the period. The development,the report said,was largely on account of increase in imports of petroleum products,gold,precious stones and gems and jewellery.

In 2011-12,even though the value of imports grew 39.28 per cent year-on-year,the growth of the customs revenue was just 10.35 per cent,the CAG said,adding that while the trend growth rate of imports during the FY’03-FY’12 was 25.96 per cent,the trend growth rate of customs receipts was 17.83 per cent.

As regard the service tax,in a performance audit report on levy and collection of service tax on import of services,the CAG observed that the department has not been able to calculate tax gap relating to import of services due to lack of sufficient data on the value of taxable services and a proper mechanism to analyse tax collected.

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