Ctg customs sees record revenue in May amid higher imports
Imports through Chattogram port have been on the rise over the past few months ahead of the national budget for FY24, with traders trying to import goods in higher amounts before any possible hike in customs duties and other taxes
The Chattogram Customs House collected Tk7,841cr in revenue in May – the highest in FY23 – riding on higher imports through the Chattogram port.
The figure is also 66.22% higher than that of the same month in the previous year, according to the official data.
With the May addition, the revenue collected in the first 11 months of FY23 reached Tk56,531 crore, Tk3,374 higher than that of the same period last year.
"Due to the dollar crisis, the import volume gradually decreased in the first half of the fiscal year. As a result, revenue also fell. However, in April and May, revenue from import duties increased significantly and gave a boost to overall revenue collected by the house," said Md Bodruzzaman Munshi, deputy commissioner of Chattogram Customs House.
"We hope that the revenue will increase in June as well," he told The Business Standard.
The growth in the customs house revenue was 1.52% in the first 10 months of FY23. It jumped to 6.53% in May thanks to higher imports. Yet the 11-month revenue is far lower than the Tk74,206 crore target set for FY23.
Officials say if the May trend continues they can collect some Tk63,000 crore in customs revenue at the end of FY23.
Imports through Chattogram port have been on the rise over the past few months ahead of the national budget for FY24, with traders trying to import goods in higher amounts before any possible hike in customs duties and other taxes.
The port handled 1,16,883 TEUs (twenty-foot-equivalent units) of import containers in May, some 9,131 TEUs higher than the 1,07,752 TEUs in April, according to the port authorities. It was 98,736 TEUs in March.
Customs officials said traders failed to import luxury goods at the beginning of this fiscal year due to the government's austerity measures to save dollars. They, however, left no stone unturned to import these goods ahead of the next budget, fearing changes in taxes. A little ease in the dollar situation helped them to this end.
For example, two ships carrying 2,641 cars came from Japan in May, the highest in FY23. Of these vehicles, 1,009 were released from Chattogram port and the rest from Mongla port. Besides, imports of other goods also increased significantly.
"Increased import, after a prolonged fall owing to the dollar crisis, is good news for the country's economy as it can improve supply chains as well as the revenue situation," Mahbubul Alam, president of the Chattogram Chamber of Commerce and Industry, told The Business Standard.
He added that businesses have been struggling with imports since the beginning of the Russia-Ukraine war.
Meanwhile, exports through the primary seaports have been on a gradual fall. Export container handling decreased to 50,277 TEUs in May from 55,940 TEUs in April. It was 55160 TEUs in March, the port authorities said.