KATHMANDU, Feb 26: Recent import data have shown an increase in demand for luxury and high-tax items, contributing to a rise in customs revenue. In the last seven months of the current Fiscal Year (FY), customs points across the country collected Rs 111.9 billion from just 10 imported items.
The top contributors to customs revenue include petroleum products (diesel, petrol, LP gas), vehicles (both petroleum and electric jeeps, cars, and vans) and ready-made and semi-finished motorcycles. Other significant revenue-generating imports are ready-made garments, pure iron and mobile phones.
Despite a modest five percent increase in the import value of these 10 items, customs revenue surged by 17 percent. Customs officials attribute this to higher quantitative imports of certain goods and increased duties on some items.
Economic slowdown hit import of petroleum products
Among the top revenue-generating items, diesel was the only one to see a decline in revenue compared to last year. Diesel imports brought in Rs 29.45 billion in revenue this year, down slightly from Rs 29.69 billion last year. Although the volume of diesel imports rose, the reduction in VAT due to lower prices led to decreased revenue.
The most significant revenue growth was seen from ready-made and semi-finished motorcycles. After years of decline, this category contributed substantially to customs revenue. Revenue from unassembled motorcycles surged by 93 percent, generating Rs 9.10 billion from imports valued at Rs 9.67 billion.
Similarly, revenue from ready-made motorcycles increased by 43 percent, with Rs 5.45 billion collected from imports worth Rs 4.41 billion. The revenue growth rate outpaced the volume increase, indicating a rise in imports of high-cc, premium motorcycles.
Higher-priced vehicle imports, particularly jeeps, cars, and vans, also boosted customs revenue. The highest rate of customs charges—up to 358 percent, including tax, excise duty, road fees, and VAT—is levied on vehicles, especially those with more than 3,000 cc engines. In the last seven months of the current FY, 20 such high-end vehicles were imported.
During this period, petroleum jeeps and vans valued at Rs 3.6 billion generated Rs 9.53 billion in revenue. Although the volume of these vehicle imports increased by just 2 percent, revenue rose by 14 percent, reflecting a trend towards importing more expensive, high-cc vehicles.
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