Ctg customs misses Jul-Oct revenue target by Tk2,417cr

• Revenue target was Tk26,640cr, but Tk24,223cr collected
• However, 7% revenue growth compared to same period in FY24
• Import volume down to 3.28cr tonnes from 3.61cr crore last year
• Target for FY25 at Tk83,432cr, compared to Tk68,563cr collected in FY24

Chattogram Customs House has fallen short of its revenue target for the first four months of the current fiscal year by Tk2,417 crore. This is about 9.07% below the target.

The revenue target of the country's largest customs station for July to October of FY25 was at Tk26,640 crore. However, it managed to collect Tk24,223 crore during the period, according to latest data from Customs House.

Customs officials said the deficit was due to several ongoing challenges, including a dollar crisis that has disrupted import activities over the past two years. Besides, complications over letters of credit (LCs) have strained importers' ability to operate smoothly.

They also mentioned that the economic environment was further destabilised during the period by political events. Since July, the anti-discrimination student movement disrupted port activities, with continued instability following a political shift in August.

Meanwhile, despite falling short of its revenue targets, Chattogram Customs House reported a growth in revenue compared to the same period in the last fiscal year.

Data show revenue collection during July-October in FY24 totalling Tk22,561 crore, while the amount collected during this period in FY25 reached Tk24,223 crore - an increase of Tk1,662 crore or 7%.

A total of 3.28 crore tonnes of goods were imported from July to October this year. The figure was 3.61 crore tonnes during the same period in 2023. 

However, despite the overall drop in import volume, the number of import shipment processes increased. Between July and October 2024, the Customs House handled 2.26 lakh consignments, up from 1.95 lakh during the same period in 2023.

Mohammad Saidul Islam, spokesperson and deputy commissioner of Chattogram Customs House, said import volumes - and subsequently revenue - will rebound as the country overcomes the current economic and political hurdles. 

He expects conditions to improve as the financial year progresses, pointing out that revenue collection has already surpassed last fiscal year's figures.

The revenue authorities have set an ambitious revenue target of Tk83,432 crore for the entire FY25. The revenue collected in FY24 was Tk68,563 crore, while the collection FY23 was Tk62,658 crore. This was a 9.42% growth in revenue. 

Customs officials said another issue affecting revenue collection is fraudulent practices, including false declarations, which are common within import operations.

The NBR in June 2020 implemented stricter penalties for false declarations, mandating a minimum fine equivalent to twice the evaded revenue. Since then, customs have taken active steps to curb these practices, and officials report a noticeable decline in fraudulent activities as a result.