Ctg Custom House collects Tk20,000cr in 4 months

The revenue collection of Custom House, Chattogram (CHC) in the last four months has taken a hit after the government initiated austerity measures to reduce the cost of imports in light of the dollar crisis and the impacts of the Russia-Ukraine war.

In the first four months (July-September) of FY2022-23, the country's largest customs station posted a revenue collection of Tk 20,296 crore. Although the growth rate is 14 per cent, it’s actually 9 per cent less compared to the same period in the last fiscal year.

Businessmen said companies, as per Bangladesh Bank directives, are unable to open letters of credit (LCs) as before due to restrictions on the import of various types of goods including luxury products. The amount of LCs for importing raw materials of export-oriented industries and daily commodities has also decreased.

An analysis of CHC’s revenue income shows that the amount of bill of entry against imports through the state-owned station, responsible for nearly 93 per cent of the country's imports and exports, has decreased in FY2022-23 so far compared to the last.

In October, 20,817 bills of entry were submitted against the import of various products. However, in October last year, the number was 22,067. In September, 20,854 bills of entry were submitted. The number was 24,348 in September last year.

CHC started FY2022-23 with a growth of over 40 per cent compared to FY2021-22 but it could not continue that trend. In July, Tk 4,781 crore was collected in revenue against a target of Tk 4,482 crore, marking a 6.68 per cent growth. However, the growth rate was 40.87 per cent in FY2021-22.

But in the following months, the growth rate started to decline. In August, the rate went down to negative 2.87 per cent. In September, it was negative 23.25 per cent and negative 25.10 per cent in October.

Meanwhile, CHC’s revenue collection target for July-September in FY2022-23 was set at Tk 23,352 crore but it earned Tk 20,296 crore, marking a growth rate of negative 13.09 per cent.

And if compared to the same period of FY2021-22, the growth rate stands at 14.98 per cent. However, in FY2021-22 till October, the rate was 23.91 per cent compared to the previous year.

CHC’s total revenue target for FY2022-23 has been set at Tk 74,206 crore.

Regarding the matter, CHC Commissioner Mohammad Fyzur Rahman told The Business Post, “Imports are decreasing as the amount of LCs has decreased. At the same time, the products which used to be taxed at higher rates are also being imported less than before. That’s why the amount of revenue collection has declined.”

“However, we are trying to increase the flow of revenue collection by preventing tax evasion and being vigilant against all kinds of irregularities, including false declarations,” he said.