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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
Daily
Vol 1 Issue No. 157
Karachi, Tue August 11, 2015
KARACHI
MUHAMMAD YOUSAF www.customsbulletin.com
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he Customs and Taxation Court reserved its judgment in a long– drawn gold smuggling case. Judge Syed Faiz Rasool Rashdi reserved the judgment after hearing final arguments from both sides and set August 29 for its pronouncement. According to the prosecution, in February 1996, the Anti-Smuggling Organization
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had seized 12000 tolas of gold worth Rs 600 million from a boat coming from International waters. Four suspects Hussain, Dawood, Abbass and Muhammad Umer, who were on the boat, were arrested. Subsequently, the custom authorities had registered a case against the accused under Sections of Customs Act 1969. The accused were later released by the court on bail. Sources told Customs Today that it is a long-drawn smuggling case in the history of such cases as it suffered inordinate delays because of frequent transfers of investigation officers and prosecutors.
DG Haroon reviews performance of IR Intelligence
Multan ASO confiscates 1,036 cell phones, 40,392 memory
Dar directs authority to synchronise public debt management
Faisalabad Customs collects Rs 250m taxes in July
LCCI for diversification of products to boost exports
A high level meeting of the Directorate of Investigation and Intelligence-Inland | SEE PAGE 02 |
The Customs ASO Multan has seized 1,036 sets of new cell phones | SEE PAGE 03 |
Dar has directed the Finance Division Director General (Debt) | SEE PAGE 04 |
The MCC Faisalabad has collected Rs 250.354 million in wake of taxes | SEE PAGE 03 |
The LCCI on Thursday said that traders should introduce new products | SEE PAGE 09 |
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Rainy season doubles rates of vegetables Tuesday, August 11, 2015
National
LAHORE: The prices of fruits and vegetables have increased by over 50 per cent mainly due to rainy season as tomato rate reached Rs100 per kg in retail markets. Before monsoon season, the spinach which was being sold at Rs10 per kg in the wholesale market, but now it is being sold at Rs30 per kilogram. The current per-kg rate of coriander in the market is Rs30 which before the rainfall was Rs10 per coriander. The price of green chilli before the rains was Rs60-70 which has swelled to Rs120 a kilo. Likewise, a massive increase was observed in the price of gourd as it jumped to Rs80 from Rs50 per kilo. The price of lady’s finger at wholesale market.
DG Haroon reviews performance of IR Intelligence
FY2015-16: RTO-II surpasses first month’s revenue target by Rs 400m LAHORE
MUHAMMAD NAWAZ
ISLAMABAD
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SHAHID MINHAS
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high level meeting of the Directorate of Investigation and Intelligence-Inland Revenue was held at the Federal Board of Revenue (FBR) Headquarters to review the performance of different units of the directorate. The meeting was chaired by Director General IR Intelligene, Haroon Tareen, in which an issue regarding the registration of criminal cases against non-taxpayers was discussed who found involved in tax evasion. DG Tareen was also briefed on the performance of directorate during the last fiscal year 2014-15 regarding the detection of tax evasion and fraud cases causing huge losses to national exchequer. In the meeting, officials also discussed different strategies to cope with the tax defaulters in the running fiscal year 2015-16. It was also decided that directorate would tighten the noose more around the culprits to save the national revenue. Meanwhile, The Federal Board of Revenue’s (FBR) Inland Revenue (IR) Directorate of Investigation and Intelligence has detected tax evasion of millions of rupees and mis-declaration of assets,
he Federal Board of Revenue’s (FBR) Regional Tax office-II (RTO-II) Lahore has surpassed the target of the first month of the new fiscal year 2015-16 by collecting Rs 4.3 billion in wake of taxes against Rs 3.9 million assigned target. As per details, RTO-II has achieved Rs 400 million more revenue against the set target marking 11 percent surplus. Regional Tax office-II has collected Rs 2.5 billion under the head of sales tax, Rs 1.75 billion in wake of income tax and Rs 400 million in terms of federal excise duty during the July, 2015. Officials told Customs Today that team of RTO-II was optimistic in achieving the revenue target for the running fiscal year by following the suite. Meanwhile, The Federal Board of Revenue (FBR), Regional Tax OfficeI(RTO-I) has suspended Malik Muhammad Irshad, an upper division clerk (UDC) due to some serious allegations. Sources told Customs Today, that the competent authority suspends Irshad under section 5 (i) of government servant (efficiency and discipline) rules 1973.
made by four aides of Malik Riaz, chairman of Bahria Town. Sources said that IR Intelligence has found that Sabir, Afzal, Inamullah and Jehangir, who procure land for new projects, are allegedly
involved in tax evasion, while the report in this regard has been sent to the Regional Tax Offices (RTOs) of Rawalpindi and Islamabad for further legal action. They informed that the IR Intel-
ligence, while scrutinising the bank accounts of the accused, detected that billions of rupees were transferred through these accounts, besides they had plenty of liquid assets in their accounts.
Customs Adjudication summons‘missing’accused in Toyota Premio case LAHORE
M HAYAT
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ollectorate of Customs Adjudication has summoned unknown accused who smuggled Toyota Premio which was confiscated by Customs authorities. Sources told Customs Today that the accused person was sum-
moned on August 18 to explain as to why his/her car may not be confiscated. The show cause notice also stated that the respondent has not appeared before the Additional Collector of Customs Adjudication on the date. Now the matter will be decided on the basis of facts and figures available in the record. These sources further revealed that the used Toyota Premio car white color was detained under section 2 (KK) and 17 of the Customs Act.
The car was confiscated by customs Intelligence and Investigation personnel in the Cavalry Ground Cantt area. The customs authorities were holding naka on the road when the car reached the naka the customs authorizes intercepted the vehicles and asked driver to stop the car.. However, the driver slipped away from the scene taking benefit of the traffic rush. Meanwhile, Customs Lahore Preventives’ Anti Smuggling Or-
ganization (ASO) has impounded two non-customs paid Honda Civic in the city. Sources said that the two white and black Honda Civics bearing Registration No. LXZ-228 and LWH-2219 were confiscated one at Bilal Gung and the other at Johar Town.It was reported that the total value of the two cars is estimated at Rs 2.4 million Sources said that on information Customs Inspector Sajad Bukhari and his team on the instructions of
customs superintendent Mumtaz Ajmal Mian raided the two different places and seized the cars. The sources said that cars were being use for household and were reported to the customs authorities. The sources said that separate cases have been registered against the accused person and further investigation is under way. The ASO seized first two cars during the first two months of the financial year 2015-16.
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Faisalabad Customs collects Rs 250m taxes in July FAISALABAD: The Model Customs Collectorate (MCC) Faisalabad has collected Rs 250.354 million in wake of taxes during first month of current fiscal year 2015-16, however it has not been assigned revenue target by the Federal Board of Revenue so far. As per details, Faisalabad Customs has collected Rs 220.012 million under the head of sales tax, Rs 12.474 million as income tax and Rs 9.868 million in terms of customs duty during the said period.
Sindh Excise collects Rs 35.5b in FY2014-15 KARACHI
Tuesday August 11, 2015
National
PCSIR, HEJ to be on WeBOC soon for customs lab tests
WAQAR AHMED ANSARI www.customsbulletin.com
he Sindh Excise and Taxation Department has collected a revenue of Rs 35.5 billion during the last fiscal year 2014-15 that is Rs 2.71 billion extra than the collections of previous fiscal year 2013-14. Provincial Minister for Excise and Taxation Gayan Sindh Israni, while talking to Customs Today, said that collection of extra Rs 2.71 billion till 30 June, 2015 is a healthy sign for the department. He said he held a very fruitful discussion with chairman PPP Bilawal Bhutto Zardari and apprised him about his department performance. He said he also raised the issue of staff shortage with Bilawal Bhutto hopefully we will receive positive response from him soon.
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SC plans to form special benches to solve pending cases of FBR ISLAMABAD
SHAHID MINHAS
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he Supreme Court has decided to establish special tax benches in the apex and high courts for early resolution of the pending cases following the request of the Federal Board of Revenue (FBR) in this regard. The FBR officials claimed that the number of total pending cases of the FBR in courts is more than 2000, in which revenue of millions of rupees is involved, adding that the number of cases is increasing. They said that, in most of the pending cases people, have taken stay orders from courts against the decisions made by tribunals in favour of the department. The FBR has been paying to the lawyer for proceedings of the cases, costing the department millions of rupees. Seeking the early decision of the cases, FBR Chairman Tariq Bajwa had requested the SC for adopting a policy in this regard.
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KARACHI
AFTAB CHANNA
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he mandatory laboratory tests prescribed by the customs collectorates for clearance of various consignments from different designated laboratories like Pakistan Council of Scientific and Industrial Research (PCSIR), Hussain Ebrahim Jamal Research Institute of Chemistry and KRC etc would soon be on WeBOC to ensure transparency in the system. Moreover, the external/private labs would also be brought on WeBOC so that no importer could do forgery or misreporting in lab tests, insiders told Customs Today.The sources said, that in many cases the importers had either changed the lab tests reports or temper for the sake of their goods clearance. There are certain labs including PCSIR, HEJ which are designated by the Customs for the lab tests. In this regard, several meetings have been held with the management of the PCSIR, HEJ and other private labs and they all would be on WeBOC soon, sources added. Meanwhile, WeBOC system is still not functioning well despite passage of three and half years. A delegation of importers and
exporters, while talking to Customs Today, has said that when WeBOC system was launched it was believed that this particular system will extend all out facilities to the importers and exporters. This system is semi-automated and still there is no audit conducted for WeBOC. They said that WeBOC system
Sources say several meetings have been held with the management of the PCSIR, HEJ and other private labs and they all would be on WeBOC soon
FBR asked to take notice of banks deducting 0.3pc WHT
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raders and industrialist of Progressive Group have urged the Finance Ministry and the Federal Board of Revenue (FBR) to take notice of the banks deducting 0.3 percent withholding tax from even the filers despite clear instructions issued by the government and the FBR many times. Progressive Group’s President Khalid Usman and deputy secretary
Muhammad Ejaz Tanveer said that they were receiving complaints from traders that banks were even deducting withholding tax from the filers. Especially those traders and businessmen are becoming subject to this injustice who have NTN numbers in their names and not against their company but are regular in filing their income tax returns mentioning all their income. They said that the banks were advising such persons to apply for
refunds at the end of the financial year. However, everybody in Pakistan knows the fact that its almost next to impossible to get refunds from the government. Stuck up refunds also create liquidity problem for the businessmen, especially small businessmen. Progressive Group leaders said that nobody was against paying the taxes but the FBR instead of relying on indirect taxes should broaden the tax net.
is still operating through Risk Management System Manual which is also operating as desired by customs officials. They said that if this practices will not changed in future then we will expect more cases of corruption. They appealed to the authorities concerned to resolve this issues on war-footing .
Lahore ASO impounds two Honda Civic cars ustoms Lahore Preventives’ Anti Smuggling Organization (ASO) has impounded two non-customs paid Honda Civic in the city. Sources said that the two white and black Honda Civics bearing Registration No. LXZ-228 and LWH-2219 were confiscated one at Bilal Gung and the other at Johar Town. It was reported that the total value of the two cars is estimated at Rs 2.4 million.
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Mobilink may acquire Warid in Sept Tuesday, August 11, 2015
Business
ISLAMABAD: Mobilink, Pakistan’s biggest cellular company, may acquire Warid telecom soon. According to the official sources in Mobilink, both the companies are in talks to seal the successful deal, which may be done in September this year. In June 2013, Warid was put on board for sale and at that time China Group and Etisalat Group were interesting in purchasing Warid. Later on in October 2013, Pakistan Telecommunication Company Limited (PTCL) announced to submit non-binding offer to acquire Warid that didn’t fulfilled by the PTCL.
Dar directs authority to synchronise public debt management ISLAMABAD
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inance Minister Ishaq Dar has directed the Finance Division Director General (Debt) to synchronise the public debt management. The minister, while presiding over a high-level meeting, briefed the official about the steps taken for the management of retail and wholesale debt. Dar asked for data projections related to external debt
Govt introduces authority to keep check on construction work LAHORE
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ith the aim to avoid any untoward incident, the provincial government has decided to introduce a Multipurpose Authority to check the substandard construction work and to take action against the involved contractors. The authority would also inspect the incomplete roads in the cities and markets. The Chief Minister would be the chairman of board of governors of proposed authority, while the board.
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and directed that EAD might share the said data with the Debt Office on regular basis. During the meeting, it was agreed that there was a need to have an optimal composition between domestic and external debt portfolios for cost effectiveness. The Finance Minister appreciated all the efforts for effective debt management and provided guidelines with regard to market issues and in house improvement. Meanwhile, Pakistan Economy Watch (PEW) President Dr Murtaza Mughal, slamming the alleged conspiracies against the country’s CNG sector, has said that the world’s
biggest industry worth Rs450 billion is being destroyed by some influential quarters. Dr Murtaza Mughal, in a statement, said that a lobby continues to misguide government in the CNG issue headed by an official of a gas company who is considered above the law. He said that the gas theft has reached alarming proportions but the said officials cannot be held responsible due to his political connections. He said that the same lobby has been trying to frustrate LNG import project while the gas is purchased on inflated rates for personal welfare and dishearten the millions of consumers.
Meanhwile, On the first-ever visit of a Pakistani Prime Minister to Belarus, PM Nawaz has left for Minsk on three-day visit at the invitation of Belarusian President Alexander Lukashenko. According to Radio Pakistan, the prime minister will hold a one-onone meeting with the Belarusian leader. A number of important agreements and memorandum of understandings are also expected to be signed during the visit. PM Nawaz will also participate in the Pakistan-Belarus Business and Investment Forum and is scheduled to visit several Belarusian industrial units.
Govt eyes another $1b-loan from Japan, World Bank ISLAMABAD
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he government is trying to get about $1 billion loans from international lenders, including World Bank. Federal Finance Minister Ishaq Dar has held meetings with Japanese Ambassador Hiroshi Inomata and Asian Development Bank (ADB) Country Director Werner Liepach in
this regar. The government is eying to get $100 million from Japan, $400 million from the ADB and $500 million from the World Bank. Last week, Dar also held a meeting with the World Bank’s managing director, briefing her about the progress that the government has so far made in meeting conditions. Meanwhile, The construction in four Sectors of the federal capital has been banned for two months under Section 144. The sub-divisional magistrate Islamabad (Saddar) has imposed Sec-
tion 144 in G-15/3, G-14/1, 2, 3 and sectors F-14 and F-15 for the next two months. The order said that no construction material would be supplied, loaded or unloaded in these sectors for construction purposes. Action would be taken against violators in accordance with the law, said the order. According to the order, land in these sectors has been acquired for the Federal Government Employees Housing Foundation and no construction will be allowed in the next two months to enhance the price of built-up structures.
Peoples Steel Mills awarded ISO 9001 certification LAHORE
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he Karachi-based Peoples Steel Mills Limited has been awarded the international certificate over its quality of products. The TÜV Austria BIC awarded ISO 9001 certification to the mills, a world class alloy and special steel manufacturing facility established by the government of Pakistan in 1975 with Japanese assistance. The plant was upgraded in 1996 through a comprehensive balancing & modernization program with the technical help from Bohler of Austria. The plant is equipped with modern melting, refining, degassing, electro slag re-melting and necessary casting, rolling and forging facilities with an annual capacity of 70,000 metric tons. People steel mills is contributing in the automotive, defense, machinery construction, special/high rise buildings and engineering sectors. TUV Austria Group has the honor of serving customers in more than 300 areas of expertise. TUV Austria Group boasts a presence of 50 plus offices in more than 40 countries. Its scope of services is extensive in the fields of food safety, quality, environmental, occupational health and safety and other critical sectors.
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Saad inaugurates Railway’s Legal Affairs building, announces 24 appointments LAHORE
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ederal Minister for Railways Khawaja Saad Rafique has inaugurated Walton Overhead Bridge and the new building of Directorate of Legal Affairs
at Railways headquarters and also announced 24 new appointments in the directorate. After inauguration, said that the department had been facing multiple problems to defend its cases on legal front, which would be resolved following the induction of new legal head and provision of better infrastructure.
While talking to media, the minister said that Altaf Hussain should have mercy on his own party members and take back his threatening remarks against the Rangers. He said the people of Pakistan and the state institutions “disliked Altaf Hussain’s poisonous remarks”, he made it clear the people of Karachi would be protected from extortionists and target killers.
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KARACHI ABTAB CHANNA www.customsbulletin.com
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he Customs Post Clearance Audit has prepared a contravention report against M/s Muller and Phipps (Private) Limited for tax evasion of Rs 2.323 million by taking inadmissible benefits under SRO 1125(I)/2011. While scrutinizing data of the importer, the PCA Karachi found that M/s Muller and Phipps imported consignments of Latex Surgical Gloves Powdered vide GD No KSCI-HC-68655/24.5.2012 and had illegally availed benefits of concessionary rate of sales tax and income tax. It may be mentioned here, that the concessions offered vide SRO 1125(I)/2011 dated 31.12.2011 are only admissible to manufacturers of goods covered in the five sectors only as highlighted in the conditions given in the said notification. Furthermore, the imported item Latex Surgical Gloves is a consumable item used for different general purposes like examination of patients by the doctors, dentists and by compouders in the hospitals. Therefore, item is not covered under the description of Surgical Goods. The importers were required to pay sales tax at 17 percent and income tax at 5 percent instead of 1 percent.
Tuesday, August 11, 2015
It transpired that the status of M/s Muller Tax Act, 1990 and Income Tax Ordinance and Phipps Pvt Ltd is that of an im- 2001 punishable under clauses (1), (9) porter/exporter/retailer and the concern and 14 of Section 156 (1) of the Customs was not registered as a manufacturer at Act, 1969, punishable under Section the time of subject imports. 33(5) and section 7A of the Sales Tax Act Therefore, an amount of 2.323 million 1990 read with chapter X of the Sales Tax has been short paid/evaded by the im- Special procedure rules 2007 (special porters on account of procedures for payment of sales tax by paying concessionthe importers) and punishable under the ary rate of sales relevant provisions of Income Tax Orditax and withnance 2001. holding inAccordingly, an audit observation was iscome tax othsued to M/s Muller and Phipps Pvt Ltd for erwise not explaining and clarifying as to on admissible to what basis concessions were them. availed by them even when Hence, M/s they were not manufacMuller and turers at the time of t a h t d n u fo i h c a r Phipps Pvt subject imports and a K A PC ps ip h Ltd viothus legally ineligiP d n a r e M/s Mull lated the ble for concessions f o nments ig s n provisions accorded vide SRO o c d e t r o imp s e of Section 1125(1)/2011 v lo G al 32(1)(2) dated 31.12.2011. Latex Surgic No KSCID G and (3A) The importers e id v Powdered of the however failed to d n a 2 1 0 .5.2 Customs come up with any HC-68655/24 availed Act, 1969, tangible evidence y ll a g had ille Sections and were also unncessionary o c 3(1), secable to refute the f o s t fi e n be tion 3, 6, & 7 charges leveled by tax and read with secthe department. rate of sales . tion 34 of Sales income tax
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Founder & Chairman Zulfiqar Ali Editor Rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
EDITORIAL
Piling up loans
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news report appearing in the media largely went unnoticed. The secretary of the Economic Affairs Division has informed the Senate Standing Committee on Finance that Pakistan obtained $11.2 billion foreign loans during the last 10 years just for debt servicing. This is a joke with the nation in the name of development. The total loan amount acquired during the decade stands at $47.8 billion whereas the country on the average has been paying $ 2.4 billion per annum to the lenders. The meeting of the committee, which held under the chairmanship of Saleem Mandviwala, was also informed that the government has taken $ 5.2 billion loan for the development of energy sector and $2 billion loan for governance, research and statistics. No statistics are available to question the utility of the loan under this head, but the committee demanded the government share the details of the loans to ascertain whether they were taken on merit or not. The government had taken another $2.9 billion loan to upgrade the transport and communication sector, $1.7 for natural disasters, including earthquake, $1.5 billion for education and $1 billion loan for the agriculture sector during the last 10 years. Pakistan survived four years without any foreign assistance from 1947 to 1951 despite seriously damaged economy. The country obtained the first loan form the World Bank after Prime Minister Liaquat Ali Khan visited the United States. The country opened the floodgates of loans as a result of which every citizen of this country is now drenched in foreign debts. The problem of this country is not finance, but financial indiscipline; the problem is not economy, but the economic mismanagement; problem is not industry, but corruption and red-tape which is hindering the growth of this sector; the problem is not in obtaining loans, but imprudent usage of the loan money in non-productive sectors. According to reports, the Senate committee has expressed no confidence over the working of seven joint working companies set up with the friendly countries. Strangely enough, the committee has asked these companies not to invest in the government securities and bonds. The committee suggested that professionals from the private sector should be engaged so that they should make eorts to attract foreign investment in the country. Pakistan is the sixth largest populated country in the world and every individual of this country needs housing, cloths and food. These are the basic human requirements which promote business and trade. The country can be turned into a paradise of business, trade and investment if the government deems the population as an asset and not as a burden.
US as trade partner A
LAHORE
DR AFTAB AFZAL
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ccording to prestigious US magazine Forbes, Pakistan has the potential to become global leader and has urged the US businessmen and policymakers to look at Pakistan beyond the binoculars of a partner in the war on terror. The magazine says that the PakistanUS relationship requires deeper thinking and action on issues around trade, investment, education and broader economic development. It says that given its 70 years of relationship, the United States should consider Pakistan as a preferred partner and not a problem. The magazine says that the US policy needs several changes to act on this opportunity. Pakistan of today is similar to that of Colombia in the late 1990s. The words like drugs, gangs, and failed state
were freely associated with the Andean country, but Colombia has now a free trade agreement with the United States, a stable 3.5 percent annual GDP growth and its security has been improved. It says that the Western media is already highlighting Pakistan from the angle of security, increased political stability and incremental progress on the economic front as action against Taliban has improved security dynamic after terrorists attack on a school in Peshawar that killed 145 people, including 132 schoolchildren. It says that the international perception about the country has to be changed as the Pakistani government, military and its citizens are on the same page against violent Taliban and terrorists. The country is still facing challenges from fringe groups, but policymakers and investors need to understand that the real situation on the ground has been changed and Taliban are not at Islamabad’s
United States should reassess its calculus about Pakistan
doorstep. It says that a politically stable prime minister is governing the country with a competent cabinet, a majority coalition and is working in tandem with the military to maintain peace and security in the country. Pakistan has recently signed agreements worth $46 billion with the Chinese government to build Pak, China Economic Corridor. The project aims to connect Chinese city of Kashgar with Pakistan’s Gwadar Port on the Arabian Sea. The United States should reassess its calculus about Pakistan. The magazine highlights opportunities of trade and investment in Pakistan, but what all glitters is not gold. The country still needs investment and transfer of technology and this could be only possible when the US companies revise their policies regarding Pakistan. If the Unites States wants to keep Pakistan as a defence partner, it should also accept Pakistan as a trade partner.
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Transport association planning to protest against 16pc services tax All Pakistan Goods Transport Association has decided to launch protest against imposition of 16 percent services tax and it has called a meeting of its members on August 10 to outline the strategy. As per details, the Punjab government has imposed 16 percent sales tax on goods transport. Due to this, tax freight fair is exceeded and costs of goods have also increased. The association argued that goods transporters are already paying many taxes to the federal and provincial governments at purchase of spare parts, tyres, engine oil, and in wake of toll tax. With presence of all these taxes, 16 percent services tax is not acceptable to them at all. A transporter, Nabeel Mehmood said that transport sector was already facing many challenges, adding that government should introduce business friendly policies.
Traders ask govt to bar banks from deducting 0.3pc WHT he local business community has asked the government to direct banks not to deduct 0.3 per cent withholding tax on transactions from the filers. Progressive Group in the Lahore Chamber of Commerce and Industry (LCCI) has urged the Finance Ministry and the Federal Board of Revenue (FBR) to take notice of the Banks deducting withholding tax from even the filers despite clear instructions issued by the government and the FBR many a times. Progressive Group’s President Khalid Usman and Deputy Secretary Muhammad Ejaz Tanveer, in a statement, said that they were receiving complaints from different traders that the banks were even deducting the withholding tax from the filers. Especially those traders and businessmen are becoming subject to this injustice those have NTN number in their name but not against their company but are regular in filing their income tax return mentioning all their income. They said that the banks were advising such persons on protest that they should apply for refunds at the end of the financial year. However, everybody in Pakistan know the fact that its almost next to impossible to get refunds from the FBR.
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FCCI pushes govt to reduce electricity tariff for industrial sector rime Minister should immediately intervene and direct Ministry of Water and Power to reduce electricity tariff, especially for industrial sector to give a kick start to the dampened industrial activities and help private sector create new job opportunities in addition to enhancing national exports, said engineer Rizwan Ashraf, president of the Faisalabad Chamber of Commerce & Industry (FCCI) here. Quoting statistics, he said that during May 2014, generation cost of electricity was Rs 7.2359/kWh which recorded a phenomenal decrease this year and now the cost of energy has been determined at Rs 4.7228/kWh. He said that if transmission and distribution losses are also added, the electricity cost will hardly stand around Rs 6/unit. He said that contrary to the actual price, the industries are paying approximately Rs 14.60 per unit for electricity.
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Tuesday August 11, 2015
Chambers
ICCI organise reception in honour of cricketer Immad Wasim ISLAMABAD
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he Islamabad Chamber of Commerce and Industry has organized a reception in honour of Pakistani cricketer Immad Wasim who hit the historic six against Sri Lanka in the last T20 and won the match for Pakistan. Ashfaq Hussain Chatha, acting president, M. Shakeel Munir, senior vice president, Islamabad Chamber of Commerce and Industry, Sports Committee members of ICCI, representatives of Islamabad Cricket Association and Rawalpindi Islamabad Sports Journalists Association as well as members of the business community were present at the occasion. Speaking at the reception ceremony, cricketer Immad Wasim said that he would always cherish the last over of second T20 against Sri Lanka as he managed to snatch a difficult match for Pakistan. He thanked Allah for this great achievement and also thanked the whole nation who was praying for Pakistan’s victory. He
said it was just his beginning and he would like to play many such memorable matches for Pakistan. He said he will give his 100 percent in every cricket match and will try his best to come upto the expectations of the nation in every format of the game. Ashfaq Hussain Chatha, acting president, Islamabad Chamber of Commerce and Industry said that Rawalpindi/Islamabad region has produced great cricketers like Shoaib Akhtar and Azhar Mahmood and it was an honor and a source of pride for us to have another emerging
cricketer like Immad Wasim from this region. He expressed good wishes for Immad Wasim and hoped that he would prove a great asset for the country in the field of cricket. He also lauded the role of Islamabad Cricket Association and Rawalpindi Islamabad Sports Journalists Association for hunting good talent and promoting sports in the region. He also thanked ICCI Sports Committee members for organizing successful ceremony in honor of cricketer Immad Waseem. Shakeel Munir senior vice presi-
dent ICCI, Nasir Iqbal President Islamabad Cricket Association, Abdul Mohi Shah chairman and Mohsin Ali president Rawalpindi Islamabad Sports Journalists Association, anchorperson Aalia Rasheed, Zahid Farooq Malik, Rana Tanveer, Shakeel Awan, Ibrar Rizvi and members of business community also congratulated Immad Waseem for showing good performance for Pakistan. Naeem Siddiqui Member ICCI announced a cash prize for cricketer Immad Waseem.
Business community lauds govt’s economic policies backed by IMF
Traders, govt urged to resolve tax issue to save economy
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LAHORE
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he local business community has lauded the International Monetary Fund’s (IMF) confidence over the economic policies of the present government, which will help increase foreign investment into the country. Lahore Chamber of Commerce and Industry (LCCI) Senior Vice President Mian Noman Kabeer, former SVP Sheikh Muhammad Arshad, PIAF Chairman Irfan Iqbal Sheikh and Punjab Board of Investment and Trade (PBIT) Chairman Abdul Basit said this while talking to state-owned news agency. They also termed the approval of $520 million tranche by the IMF
Mission as the outcome of the efforts of Federal Finance Minister Ishaq Dar, quoting the IMF mission’s remarks that Pakistan’s economic indicators were improving. The industrialists and businessmen hoped that country’s GDP growth rate would scale up to 4.5 percent during current fiscal year following stability in economy; cut in oil prices; improvement in generation and provision of energy to the industry and investment under the China-Pakistan Economic Corridor (CPEC) project. They mentioned that dearness ratio reduced by 1.8 percent last month, while foreign trade deficit went down by 0.8 percent against the GDP due to reasonable oil prices and improved foreign exchange rates in FY 2014-15. The
foreign reserves of State Bank of Pakistan are also showing an upward trend, they said and asserted that country’s economic health is recovering fast because of wellconceived and viable policies of the government. The industry and business leaders urged the government to ensure implementation on the IMF Review Mission’s report that called for expediting reform process in energy sector; increasing tax collection; improving tax to GDP ratio and privatization of institutions incurring billions of rupees losses. They said that Benazir Income Support Programme (BISP) is also moving in the right direction, as it is extending financial assistance effectively to the poor and neglected segments of society.
he representative of local business community has urged the both sides, ie government and traders, to resolve the issue of withholding tax on banking transactions on non-filers to avoid the further losses. This was stated by Lahore Businessmen Front (LBF) Senior Vice President Tahir Malik, while talking to the state-owned news agency. He said that a vast majority of business community was not interested in strikes and protests as they want to do resultoriented dialogue with the government for resolving their issues. The loss which the business community, the government and the whole economy is facing due to strikes is in billions of rupees, he added. He dispelled the impression that businessmen don’t want to pay taxes and said, “Our people want to pay taxes on rational basis and want to extend all out cooperation with the government for expanding the tax net”.
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Chinese Customs seizes 24 taxus Tuesday August 11, 2015
World UK Customs holds fake designer goods at Western airport he suspected fake goods were seized at the Sunday market, in the car park of Western International Market, which operates separately from WIM’s daily marke. A huge haul of suspected fake designer goods has been seized in a raid on a west London market. Suspected knock-offs of brand names including Ralph Lauren, Luis Vuitton, Mulberry and Gucci were among more than 3,000 items seized at the Western International Sunday Market, in Southall, on July 26, according to the council. Three people were arrested under the Trademarks Act 1994 after police and Trading Standards officers from Hounslow Council swooped. Two properties in Southall were also searched, where more goods and cash were seized. Experts from the genuine brands have been drafted in to investigate the cache of clothing and accessories and, if they prove to be fake, the council says it will push for prosecutions. The Sunday market operates from the car park of Western International Market, in Hayes Road, on the borders of Hounslow and Ealing boroughs, but is separate from the famous daily fruit and veg market. Richard Foote, Hounslow Council’s cabinet member for community protection, said: “Fake goods may look like a bargain, but they are often found to be of substandard and in some cases, for example with electrical goods and cosmetics, they can be dangerous.
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BEIJING: Officers of Dayaowan Customs House (affiliated to Dalian Customs District) said they had seized 24 taxus in a fishing boat that might be involved in the smuggling activities a few days ago. The plants seized were later confirmed as Taxus Cuspidata, an endangered species listed under Class State protection.
Spanish Customs chases drug smugglers onto Gibraltar beach GIBRALTAR
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Spanish customs vessel and helicopter chased suspected drug smugglers onto a beach in Gibraltar early Sunday, in what the British government said was “clear violation of UK sovereignty.” The chase started 18 kilometres (11 miles) into the Strait of Gibraltar but ended at around 3:00 am on the shoreline in Sandy Bay, a beach on Gibraltar’s east side overlooked by residential homes. The smugglers jettisoned bales of drugs before hitting a submerged reef and abandoning their beached vessel with Spain’s customs service in hot pursuit. According to the Royal Gibraltar
Police and eyewitness accounts, the Spanish helicopter hovered low over the beached speedboat while the patrol boat deployed a small dinghy, which entered the sheltered lagoon in Sandy Bay and headed to the shore. Gibraltar police were deployed to the scene and arrested two of the suspected smugglers on land. A third man managed to escape. Authorities in Gibraltar said Spanish customs had failed to alert them about the chase or request assistance. “We consider this has been a serious and unnecessary failure on the part of the Spanish customs service which has had outrageous consequence in respect of the violation of our sovereignty,” said Gibraltar’s Chief Minister, Fabian Picardo, in a statement. He blamed Spanish customs for acting a way “that, in effect, has al-
lowed a criminal who should be behind bars to get away.” Foreign Office Minister Hugo Swire, in a statement, condemned the “incursions” as “unlawful.” “These repeated incursions into British Gibraltar Territorial Waters are a clear violation of UK Sovereignty by another EU country and we will be raising this as a matter of urgency with the Spanish authorities,” he said. This is the most serious in a string of similar incidents in the waters around Gibraltar, which are claimed by both Britain and Spain. Although police and customs in Gibraltar regularly cooperate with their Spanish counterparts, disagreements over jurisdiction mean there is no formal protocol in place. As a result tense exchanges are commonplace, particularly when Spanish vessels attempt to take action in waters that the UK regards as
French Customs makes record seizure of hash C
MARTINIQUE
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ustoms agents on the French territory of Martinique made a record seizure of hash at the island’s Caribbean port, officials said Thursday. Acting on a tip, officers found bricks of hashish packed neatly in 13 boxes in the back of a van that
arrived in Martinique with more than 600 other vehicles, Prosecutor Eric Corbaux said. Officials put the value of the 404 kilograms (891 pounds) of hash at about $2.6 million. It was more than all hash seizures combined from 2012 to 2014 in Martinique and two other French overseas territories, the majority involving small amounts found on couriers at airports. Corbaux said no arrests had been made but
the investigation continued. Authorities believe the hash was produced in Morocco. The seizure comes just weeks after authorities in the French Caribbean seized nearly $875,000 in cash from suspected drug traffickers arriving from Paris. The most recent incident occurred on the nearby island of Guadeloupe, where officials found large bills inside a hollowedout dictionary.
Nigerian Customs clutches 48 items worth N197.38m in July
T ABUJA
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he Nigeria Customs Service (NCS), Federal Operations Unit (FOU) Zone “C” Owerri, said it seized 48 contraband with a Duty Paid Value (DPV) of N197.38 million in July. The Customs Area Comptroller (CAC) of the unit, Mr David Dimka, announced this while addressing newsmen on the performance of
the unit here the other day in Owerri. He said that 30 suspects were arrested in connection with the smuggling on the Benin/Asaba Express Way, Owerri/Port-harcourt Road and Enugu axis. He said that 20 cases were now pending in the court in respect of the seizures. Read Customs suspends three banks from collecting duties Dimka said apart from the 48 seizures, an under-payment of N24.25 million was also recovered.
According to him, a breakdown shows that 69 bales of second hand clothes; 39 vehicles; 139 pieces of used tyres; 244 pairs of used foot wears and 60 bags of 50kg rice were seized. He expressed displeasure at the increased number of exotic vehicles seized by the unit on daily basis. The area comptroller advised members of the public who wished to purchase vehicles to go through the official channels. He
advised them to always verify from the customs before investing their money. Dimka warned that all illegally imported goods would be impounded as ignorance of the law was no excuse. Read Customs release seized copies of ex-President’s book He also warned that the NCS would not succumb to “senseless and irrational pleadings for leniency and pardon by individuals caught in the act of smuggling.”
British but which are also claimed by Spain. Earlier this month a Spanish customs vessel chased a speedboat into a demarcated swimming area off another Gibraltar beach. The action was dubbed as “irresponsible” by Gibraltar and led the British government to lodge a diplomatic protest with officials in Madrid. Smuggling of hashish from Morocco through the strait of Gibraltar reaches a peak in the summer when the weather is fair. Spain is one of Europe’s main entry point of drugs coming from Africa or South America. Spain ceded Gibraltar to Britain in perpetuity in 1713 but has long argued that it should be returned to Spanish sovereignty. London says it will not do so against the wishes of Gibraltarians, who are staunchly pro-British.
NZ Customs seizes meth worth $80m WELLINGTON
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haul of methamphetamine worth around $80 million has been discovered hidden inside car parts, in a shipping container bound for Fiji. New Zealand Customs investigations manager Maurice O’Brien said a joint operation between New Zealand, Fijian and Australian police and the Fiji Revenue and Customs Authority led to the find at the Ports of Auckland in July. About 80kg of meth had been sent from South America and was en route to Fiji from New Zealand when it was found. A Fijian national has since been arrested in relation to the find. O’Brien said it was a “great example” of international law enforcement agencies working together. “It is very satisfying to play a part in this operation and stop this large amount of methamphetamine making it onto the streets,” he said. “Sophisticated criminal syndicates set up drug supply chains across countries and take big risks for big profits. We’re pleased this significant seizure will hit them hard in the pocket.”
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Ports & Shipping Tuesday August 11, 2015
Shipyards market suffers due to few orders: report ome shipyards are living a kind of ‘hand to mouth’ existence as orders become few and far between. However, there are a few contracts emanating from tanker owners. For example, Nantong Tongbao Shipbuilding was said to have won an order from Shanghai Dingheng Shipping and Xiamen Xiangyu Group to build eight stainless steel chemical tankers worth RMB1 bill ($160.95 mill), local media reports said. Tongbao Shipbuilding reportedly said that the yard will need three to five years to build the eight ships, which range between 2,000-15,000 dwt. Li Duozhu, chairman of Dingheng Shipping, a subsidiary of investment firm Dingheng Group, reportedly said that the chemical tanker shipping market had started to recover from a low. He added that in line with China’s growth, demand for chemical tankers will strengthen. Li predicted that over the next 10 years, demand for chemical tankers will increase by fivefold from the current levels, the media reports said. In comparison, Shenzhen-listed Sainty Marine was believed to have lost orders for 14 stainless steel chemical tankers placed by Celsius Shipping. They were to be built at its partnership yard Nantong Mingde Heavy Industry (NMHI).
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SLPA celebrates 36th anniversary ri Lanka Ports Authority (SLPA) celebrated the 36th anniversary recently. A special function was held at the ‘Sri Sambuddajayanthi Chaithya’ premises in commemoration of the event with the initiative of Ports and Shipping Minister Arjuna Ranathunga. Chairman of Sri Lanka Ports Authority (SLPA) Dr. Lakdas Panagoda said that as a Sri Lankan he was pleased to see SLPA making an enormous contribution to the economy and to the development of Sri Lanka. He said that the effort and the commitment of the employees in fulfilling this task was greatly appreciated. “We are very pleased that the SLPA, with the dawn of 2015 has been able to increase the salary of employees by 15 percent with an additional allowance of Rs. 9000,” he said. The Port of Colombo continues to meet the challenges in the maritime sector successfully and two new main shipping lines started using the Port this year.
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Seattle and Tacoma Ports united to attract more marine cargo WASHINGTON
ollowing a finance ministry report that foreign shipping lines are slapping dozens of different surcharges on customers, the government is planning to bring all fees related to sea freight under its oversight. It ordered the transport ministry to publicize a list of collectible fees and surcharges and draft relevant regulations, including on how they should be declared. The Vietnam Shippers' Council will collaborate with relevant agencies to help its members switch to cheaper means of freight while negotiating with shipping lines to scrap unreasonable surcharges. In a report to the government in June, the Ministry of Finance said 20 foreign shipping lines that dominate Vietnam's logistics market are imposing nearly 70 kinds of surcharges, many of which are "unclear" and unreasonably high. The surcharges accounted for more than a third of their VND77.1 trillion (US$3.53 billion) revenues in 2013-14, according to the ministry. Nearly half of the surcharges are terminal handling charges (THC), which are "much higher" than those charged by Vietnamese ports, it said. The shipping companies collect $88-131.5 per container as THC while the ports only charge $46.1-69.1, it said. The companies are also "unclear" about some surcharges like container clearance and maintenance, the report said.
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ommissioners from the ports of Tacoma and Seattle have formally launched the Northwest Seaport Alliance, the first of its kind in North America. The Northwest Seaport Alliance unifies the two ports’ marine cargo terminal investments, operations, planning and marketing to strengthen the Puget Sound gateway and attract more marine cargo to the region. Federal Maritime Commission (FMC), the federal agency that oversees the shipping industry, voted unanimously to approve the agreement last month. FMC Chairman Mario Cordero said, “This alliance would become the third-largest trade gateway in North America, behind the ports of Los Angeles and Long Beach and the Port of New York/New Jersey. The Pacific Northwest is a key region for inbound and outbound United States cargo, moving cargo not only for the regional trade, but also cargo headed to destinations throughout the entire U.S. Midwest, and this Alliance will help the region remain competitive into the future.” While the ports remain separate organizations that retain ownership
Vietnam govt to take action against shipping lines on undue surcharges
of their respective assets, they formed a port development authority (PDA) to manage the container, breakbulk, auto and some bulk terminals in Seattle and Tacoma. The airport; cruise business; marinas, such as Fisherman’s Terminal; grain terminals and industrial real estate, such as the Northwest Innovation Works and Puget Sound Energy facilities and Terminal 91 uplands, will remain outside the alliance. The PDA will be governed jointly by the two ports through their elected commissions. “Creating the Northwest Seaport Alliance, the third largest cargo gateway in North America, is truly
historic and signals a new era of cooperation between our ports,” said Port of Seattle Commission co-President Courtney Gregoire. “Combining our strong cargo terminal operations will make our region more competitive in the global economy and create new jobs in Washington.” “We have moved from fierce competitors to bold collaborators to form a new business model for the greater good of our region,” said Don Johnson, Port of Tacoma commission president. “We recognize how critical the maritime industry is to our state’s economy, and we are proud and excited to strengthen it even more.”
China considers merger of two top shipping companies SHANGHAI
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hina is mulling the merger of two of its largest shipping companies as part of a restructuring plan for state-owned enterprises (SOEs), according to a media report. Beijing may merge China Ocean Shipping Group, known as Cosco, the largest shipping company in the country by fleet size, with China Shipping Group, Bloomberg News reported, citing unnamed people familiar with the matter.
If not a full merger, the government could instead combine some of their businesses, the report added. Several arms of the two giants halted trading in their shares pending an announcement on Monday in both Shanghai and Shenzhen, as well as in Hong Kong, where some are also listed. "China's shipping sector has been the poster boy for over-investment and overcapacity," Bloomberg Intelligence Chief Asia Economist Tom Orlik told Bloomberg News in an email in the Friday report. "Any restructuring which ad-
dresses that problem would be a step in the right direction." China has already merged its top two train makers -- China CNR Corp and CSR Corp -- which are also state-owned, into the single conglomerate CRRC Corp. The move, announced in December, aims to prevent competition between the two as China vies for lucrative rail contracts overseas against industry giants such as Germany's Siemens and Bombardier of Canada. Merger speculation surrounding other major state-owned enterprises (SOEs) has intensified as the world's second-largest
economy tries to reform the goivernment-backed heavyweights that dominate its economy to boost stalling growth. The official Xinhua news agency reported in April that China was considering merging scores of its biggest SOEs to create around 40 national champions from the existing 111. Total revenue from national SOEs dropped 7.1 percent yearon-year to 13.21 trillion yuan ($2.16 trillion) in the first half of 2015, data from the finance ministry showed. The merger speculation helped the Shanghai stock market close up 4.92 percent on Monday.
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Excise arrests 10 drug peddlers, registers 10 cases in July LAHORE: The Excise and Taxation Department’s anti-narcotics cell is very vigilant against drug sellers and peddlers in the province, especially in Lahore. According to excise and taxation officer Lateef Anjum, during the month of 2015 narcotics cell has arrested more than 10 drug peddlers from different areas of Lahore. The raids were conducted under the supervision of M Latif Anjum, ETO Excise, Lahore while Excise team comprising of Akhtar Sandhu, Waqas Aslam, Javed Akhter and Sharoon Augustine, excise inspectors.
Tuesday, August 11, 2015
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Audit team detects Rs 60 million fraud in property tax, receipts of millions of rupees missing ISLAMABAD
SHAHID MINHAS
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n audit team has already completed the audit of Excise and Taxation Department of Rawalpindi for the year 2014-15. According to sources, the audit team has returned to Lahore after completing the audit and will prepare its report and will send it to the Punjab government. Sources further added that a Rs 60 million fraud was deducted in the property tax collection while receipts of millions of rupees tax were missing in the record. On the other hand, the Excise and Taxation office sources told Customs Today that huge irregularities were found in property tax collection. It is important to mention here that Director-General Excise and Taxation Punjab has constituted a four-member audit team under the supervision of Director Audit and Enforcement Lahore Muhammad Asif to investigate into the financial and administrative irregularities in the xcise and Taxation office, Rawalpindi.
NAB arrests former Lakki Marwat EDO over corruption charges T
PESHAWAR
NADIR KHAN
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he National Accountability Bureau (NAB) Khyber Pakhtunkhwa has arrested Noor Hassan, the then Executive District Officer (Education) Lakki Marwat (BPS – 19), for his alleged involvement in corruption and misuse of authority while appointing teachers and technical staff in Education Department district Lakki Marwat in connivance with others. As per detail, Noor Hassan performed his duties as EDO Education Lakki from 2009 to 2011. During his tenure, he made illegal appointments in BPS 1 to 14 in differ-
ent cadres in Education Department District Lakki Marwat. The accused made appointments through handpicked unlawful committee. Some appointment orders were issued prior to the advertisement of those particular posts in newspapers. Further, the most essential requirement is approval of District Selection Committee was also not obtained in majority of appointments. It merits to mention here, that in Primary School Teacher (PST) (female) 19 vacancies were available but the accused issued 79 appointment orders. The accused allegedly issued the appointment orders in piece meal during his tenure to his blue eyed against bribe in gross violation of merit / rules.
The accused person will be produced before the Accountability Court for obtaining his physical remand to proceed further as per law. Meanwhile, Markazi Tanzem-e-Tajiran Rabita Committee Peshawar Cantt held a protest demonstration against the imposition of withholding tax on bank transaction. Dozens of protesting traders, led by the Union President Mujeebur Rahman, were gathered on main Sher Shah Suri road. They chanted slogans against the government. They were holding placards and banners inscribed with anti-government slogans against imposition of withholding tax on bank transactions and in favor of their demands.
Talking to media persons, the protesting traders said that imposing new taxes on the militancy hit traders of Khyber Pakhtunkhwa and rest of the country was quite injustice. They termed the move of the government as anti-traders and ultimately anti-masses step. They said that government instead of imposing new taxes should reduce already imposed multiple taxes. The traders also protested against the closure of car parking in Diljan (FC) plaza in Peshawar Cantt, from the last three months. They said that owing to abolishment of car parking their businesses were destroyed as no customers bother to park their vehicles a kilometer away at the mercy of car lifters and come to FC plaza.
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