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ABC Certified Vol 3 Issue No. 39
Karachi, Tue Sept 15 - Mon Sept 21, 2015
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ADDReSSINg COMpLAINTS
DIRECTOR ASIF’S CUSTOMS ANTI-SMUGGLING
FTO Abdul Rauf Chaudhry has initiated the process to address maximum complaints and provide relief to the complainants. | See pAge 02 |
DETECTS 38 CASES INVOLVING RS 858 MILLION
BUILDINg eCONOMY
Directorate of Investigation and Intelligence, Customs Anti-Smuggling, recovers Rs 8.764 billion since Director Asif Marghoob assumed charge
IR-Policy Member Shahid Asad urged business community to submit their tax returns honestly so that economy could thrive. | See pAge 12 | WORKINg TOgeTHeR
— Exclusive Customs Today photos
KARACHI
AFTAB CHANNA
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RA&R Member Ali Salman says taxpayers and tax administration should have best liaison between them to tackle issues faced by both sides due to lack of confidence. | See pAge 06 | COLLeCTINg ReVeNUe
Chief Collector Zahid Khokhar’s Enforcement-South collects Rs 3.596b customs duty in Aug. | See pAge 04 |
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he Directorate of Investigation and Intelligence, Customs AntiSmuggling, after bifurcation has detected 38 cases of smuggling involving Rs 858 million during first two months (July-August) of running fiscal year 2015-16. In an exclusive interview with the Customs Today, Director Asif Marghoob Siddiqui said that earlier the directorate, before the bifurcation, had to oversee all the issues pertaining to anti-smuggling, consignments’ clearance at ports and revenue realization. However, now the directorate has been bifurcated into two parts and the Directorate of Investigation and Intelligence-Customs Anti Smuggling has a separate domain, while the name of other part is Directorate of Investigation and Intelligence, Customs Enforcement. During March 2014-June 2015, the directorate of Karachi region under the directorship of Director Asif contributed a major chunk of funds to the tune of Rs 7.906 billion to the national kitty. It detected various cases of smuggling involving Rs 2.207 billion during the said period, Asif said, adding that the smug-
gled goods seized include foreign liquor, diesel, narcotics, electronic goods, black tea, cigarettes, plastic and other stuff, Asif Marghoob said. While, the seizure of smuggled goods as compared to the same period last year i.e. March 2013 to June 2014 stood at Rs 1.038 billion, he said. The director said that the Customs Intelligence had detected tax evasion of Rs 5.019 billion in the clearance of consignments at Karachi Port Trust, Port Muhammad Bin Qasim and Hyderabad Dry Port. “The major tax evasion cases were detected by intelligence of telecom sector including Mobilink, Zong, Pakistan Telecommunication Limited, Warid etc,” he states. Moreover, the total tax evasion detection in the same period of past year stood at Rs 2.897 billion, he said, adding that Rs 680 million were contributed to the national kitty under heads of revenue realization in terms of auction of seized goods, on the spot recovery etc. Interestingly, the contribution remained at Rs 280 million in the same period of last year, Marghoob further added. It is important to mention here that Director Asif Margoob assumed charge as director in March 2014 and, his department has recovered Rs 8.764 billion to date.
Asif Marghoob says directorate is also carrying out a survey to pinpoint residential areas where movement of smuggled goods, oil and diesel is reported
Meanwhile, Customs Anti-Smuggling has activated and directed its informers to trace out depots and go-downs of smuggled goods, particularly Iranian petrol and diesel. Director Asif Marghoob Siddiqui said that smuggling trend had changed in the city and the smugglers were now choosing residential areas as hot spots for storing smuggled goods and oil. “We are also undertaking a survey pointing out the residential areas where the movement and flow of smuggled goods, oil and diesel is reported,” he added. In the recent past, the director said that the customs intelligence had recovered 40,000 litres of smuggled diesel stored in the water tank of a house in the city’s residential area. The intelligence staff had also been instructed to point out the dumping places for the smuggled goods so that those involved in the menace could be apprehended, Marghoob added. Moreover, Director Asif Marghoob stated that even the posh areas of the city and residential areas have become suitable places for the smugglers. However, the Customs Intelligence officials are keeping a vigilant eye on them and actions are taken promptly whenever any information about the smuggling bid is received, he said.
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NATIONAL
www.customstoday.com SEPTEMBER 15 - SEPTEMBER 21, 2015
gerry’s Dnata terminal out of grounding space KARACHI: Importers are facing difficulties in clearance of their consignments due to low grounding space at Gerry’s Dnata terminal. According to sources, more than 60 percent of the handling of consignments at the Air Freight Unit (AFU) is being done by the private company’s terminal. But due to low grounding space, it takes six or seven days to clear a consignment instead of a single day. Due to this, the importers have to pay extra for go-down’s rent.
FIA arrests 9 suspects, involved in human trafficking, gas pilferage
FTO gears up efforts to address maximum number of complaints
SIALKOT
FTO settles 82,000 tax refund claims involving Rs 5.389 billion in 2014
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ISLAMABAD/MULTAN
ZAFAR MALIK
he Federal Investigation Agency (FIA) has arrested nine suspects, including three notorious human traffickers-turned-proclaimed offenders during a crackdown against them in Gujranwala division. According to FIA Gujranwala Deputy Director Ch Khalid Anees, the special FIA teams raided various places to ensure the early arrest of the suspects, who had been sending innocent people abroad illegally after extorting big amounts from them. Anees said that several suspects had also been running illegal money exchanges. The deputy director revealed the names of the arrested suspects as Javaid Iqbal alias Jeda, Munawar and Ghulam Rasul. The suspects had disappeared after extorting millions of rupees from people. He said that the suspects had been living at the new places in and around Gujranwala and they had also changed their names to hide their identity. The FIA has arrested the owner of a big bakery shop Muhammad Asghar for pilferage of gas and sealed his bakery. The authority has also arrested three alleged money changers Muhammad Nadeem, Khawar Naseem and Shamshad from Trust Plaza Gujranwala. The FIA has also arrested a big money changer Basharat Mehmood from Jalalpur Jattan, besides seizing Rs 653,350 in cash, 1,300 euros, 1000 Saudi riyals , 125 dirhams and 50 dollars from him. The FIA has sent the suspects behind the bars after registering separate cases against them.
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Faisalabadexcise MotorBrachcollects Rs5.58minAugust FAISALABAD
NAeeM SHeIKH
www.customstoday.com he Excise and Taxation Motor Branch Faisalabad has collected Rs 5.58 million and impounded 27 vehicles in month of August 2015. Motor branch has also started a survey for the recovery of tax in different areas of the district, including Faisalabad Motorway Toll Plaza, Gatt Wala Toll Plaza, Jhang road, Samundari road and Thana Sadar. Director Saeed Ahmed of Excise and Taxation said that the department has made enough efforts to achieve the revenue target, adding that operation has been initiated in the region to ensure recovery of taxes from defaulters. The survey has been started from west part of Faisalabad which will be completed in next twenty days as credible reports revealed that majority tax defaulters were belong to this area.
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NAeeM ULLAH & IMRAN ALI KHAN www.customstoday.com
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he Federal Tax Ombudsman (FTO) has initiated the process to address maximum complaints and provide relief to the complainants. At least 1,624 complaints were filed during the year 2014, almost 14.4 percent higher than the preceding year. The FTO is gearing up efforts to attain the trust of plaintiffs in the office as the number of fresh complaints has declined now. They mentioned that malpractices and maladministration on part of the tax collecting authorities had been the subject of most of the complaints. Documents available with the Customs Today stated the following points to control declining number of fresh complaints: a) enhancing FTO outreach to the small and medium enterprise, b) improving sustainability of decisions by ensuring legality and propriety findings and recommendations, and c) strengthening synergy with Federal Board of Revenue (FBR) and its field offices for prompt redress of taxpayers’ grievances. “Peoples’ trust would grow on FTO with the implementation of newly formed regulations by the authorities”, FTO senior officials underscored. It may be mentioned here that the FTO settled almost 82,000 claims of duty drawback and tax refund involving Rs 5.389 billion after completing the inquires into filed complaints by exporters and manufacturers during the year 2014. Documents available with the Customs Today disclosed that the FTO office had also made sure the refund
Ombudsman’s office to train regional officers to assist the taxpayers of Rs 8.230 billion to concern applicants by resolving 178,309 cases in 2013. While in 2012, FTO directed department concerned to pay Rs 9.787 billion by deciding 231,250 claims. Similarly, it settled 181,880 claims involving Rs 7.889 billion in 2011, and 194,056 claims involving Rs 7.080 billion in 2010. Sources told that out of 82,000 claims of duty drawback and tax refunds for the year of 2014, 81,795 were settled through FTO office’s intervention. Meanwhile, the Federal Tax Ombudsman will empower the guidance counsellors who are posted at Multan Ombudsman Regional Office to probe
the complaints of taxpayers regarding tax departments. According to details, Federal Tax Ombudsman appointed in Multan region will be given special training to prepare them for better investigations into the issues of income tax, customs, sales tax, federal excise duty for the resolution of taxpayer grievances. Taxpayers face several issues regarding their taxes in which they are not satisfied with their tax departments due to their discriminatory behavior. Now Federal Tax Ombudsman decided to train their regional officers after receiving several complaints against the lower staff of regional tax office .
Federal Tax Ombudsman will take special measures in order to train tax ombudsman by organizing their capacity building training for the regional offices including Regional Tax Office Multan, MCC Multan and Excise and Taxation Department Multan soon. Federal Regional Tax Ombudsman office would deal with to resolve the issues of the taxpayers in their respective cities after receiving any complaint from them. This step of Federal Tax Ombudsman would bring the trust of taxpayers on the tax departments and it will also deliver transparency in the taxation system through the training of the Tax Ombudsman officer.
Ali Raza asks officials to issue hearing dates in pending cases
LHC issues arrest warrants for suspect in Rs 2m fraud case
Adjudication Collector Ali Raza issues show cause notice to alleged cell phone smuggler
MUHAMMAD NAWAZ
ISLAMABAD
SHAHIDMINHAS
www.customstoday.com ollector, Collectorate of Customs Adjudication, Islamabad Muhammad Ali Raza has directed the staff to streamline the pending cases in order to settle them early. According to the details, after assuming the charge of collector here in Customs Adjudication, Islamabad, he directed the staff to organize the cases and issue the hearing dates in pending cases. The collector has also held meeting with the additional and deputy collector adjudication and dis-
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cussed the matters relating to adjudication. In the meeting, he was briefed on cases being heard by the department and about pending cases. It is important to mention here that Muhammad Ali Raza is a Pakistan Customs Service officer of BS20 who has assumed the charge of the post of collector on September 1. Earlier, he was serving as the Customs Internal Audit as director. Meanwhile, Collectorate of Customs Adjudication Collector Muhammad Ali Raza has issued a show-cause notice to unidentified suspect involved in smuggling of cell phones and its accessories. The collector has issued a show-
cause notice vide C.No. Cus/coll/adj/36/2015/44 to unidentified suspect in a seizure case No. 36/2015 to appear before the court on September 11, 2015 to prove the legal import of the items. The authority also directed if no one appeared to show the ownership of goods or fails to provide the evidence; the case will be decided on the basis of available evidence. The collector also directed the deputy director headquarters of Customs Intelligence Islamabad, deputy collector of Customs at Benazir Bhutto International Airport and seizure officer concerned to attend the court hearing along with relevant record.
LAHORE
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HC issued arrest warrant of accused involved in embezzlement of Rs 2.1 million in guise of customs duty who is still at large. A two-member bench of LHC under the supervision of Justice Mehmood Maqbool Bajwa heard a case against Abdur Rauf, while the case was lodged by National Accountability Bureau (NAB). The counsel for NAB argued that Rauf was sentenced by Accountability Court for his involvement in the case and later he moved the LHC which voided the decision. After disposing of the punishment, accused went underground to avoid the legal proceedings, the advocated added.
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NATIONAL 03
www.customstoday.com SEPTEMBER 15 - SEPTEMBER 21, 2015
Customs finds irregularities in clearance of imported items KARACHI: Port Qasim Collectorate revealed a large number of irregularities in imported Indian clothes, auto parts, scrape and other items. According to sources that false PCTs are being shown during the process of clearance for Indian clothes and other auto parts, therefore national kitty bears huge losses. Source told Customs Today that the officials of Port Qasim are examining the consignment of Indian clothes shipped from Dubai and the consignments are being cleared by taking speed money.
KARACHI
gulRehman’s DirectorateofpCAdetects Rs153.028mtaxevasioninAugust
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Directorate detected as many as 29 cases of tax/duties evasion within a month
he Model Customs Collectorate (MCC) Quetta foiled an attempt of currency smuggling and arrested two suspects. The Customs authorities have stepped up efforts to curb the menace of smuggling from society during the last three months. It has conducted around 34 raids so far, sources said. Sources told CustomsToday that a successful raid headed by Superintendent Customs Collectorate Imran Farooqi foiled an attempt to smuggle Rs 40 million to Iran.Two accused persons who were identified as Raheel Khan and Naeem were arrested. Besides this Customs authorities also foiled an attempt to smuggle 12,367 bags of Australian fertilizer amounting around Rs 25 million to Afghanistan. Separately, Model Customs Collectorate Preventive Quetta confiscated over 28,000kg smuggled plastic crush. Sources told CustomsToday that the Customs anti-smuggling squad raided an undeclared place and seized plastic crush worth millions of rupees. A suspect was also arrested from the spot as being part of the alleged smuggling. The Customs authorities have confiscated 8 trucks of plastic crush during the last three months. According to sources, Iranian plastic crush’s low price is the main reason of its smuggling. Sources added that due its smuggling the country is facing billions of rupees loss. On the other hand, the Directorate General of Customs Intelligence and Investigation claims to have impounded two smuggled cranes. According to sources, Balochistan Customs Intelligence nabbed two cranes worth Rs 5.5 million and Rs 6.6 million during a raid.The cranes were on their way to Quetta from Chaman.
KARACHI
WAQAR AHMeD ANSARI
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AFTAB CHANNA
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hile upholding its commitment to detect and highlight the tax evaders in the country, the Customs Directorate of Post Clearance Audit-Karachi has detected evasion of taxes/duties to the tune of Rs 153.028 million just in the month of August 2015. In an interview with Customs Today, Directorate of PCA Karachi Director Gul Rehman said that his directorate had detected some 29 cases of tax/duties evasion in just a month. However, the same directorate in August 2014 had detected cases worth Rs 2.5 million. In these cases, the audit observations of some 6 cases while contravention reports of 23 cases have been issued and the importers who brought loss to the national exchequer are directed to pay the short paid amount in ten days period, he said. “There are some 6 cases of inadmissible benefit of Sr No 20 and 21 of SRO 575(I)/2006 dated 05.06.2006 in which the importers evaded Rs 34.752 million. The countries of origin of the imports are Korea, Germany, UK, Italy, Sweden, Japan, Netherlands, USA, Canada, Finland, UAE, Belgium, Australia, Indonesia, Oman, China, France and Singapore”, Gul Rehman added. Moreover, the evasion of short payment of custom duty and withholding income tax by claiming inadmissible benefits of SRO 567(I)/2006 dated 05.06.2006 have
— Exclusive Customs Today photo
Customs foils bid to smuggle Rs 40 million to Iran
pCA Director gul Rehman also been detected in which five importers evaded a total of Rs 5.997 million. In these cases, the countries of origin from where the consignments were imported include India, China and Kuwait, he went on to say. Furthermore, Gul Rehman says at least 10 cases were detected for evasion of leviable custom duty, sales tax and withholding income tax by clearance of their goods at lesser weight/quantity than the declared weight/quantity Rs 2.248 million. The importers in these cases had imported consignments from China. The importers also availed illegal benefits of Sr No 54 of
SRO565(I)/2006 dated 05.06.2006 causing loss of at least Rs 35.283 million, he said, adding that evasion of custom duty, sales tax and income tax due to mis-declaration of classification on import of Calcium Sulphate to the tune of Rs 24.714 million. Elaborating further, PCA director added that Rs 1.156 million evasion was detected under short payment of sales tax and corresponding income tax in violation of SRO1125(I)/2011 dated 31.12.2011; Rs 3.301 million for short payment of income tax under section 148 of the Income Tax Ordinance 2001; Rs 17.428 million for
inadmissible benefit extended under SRO450(I)/2001 dated 18.6.2001; and Rs 5.011 million for non-payment/short payment custom duty, sales tax, additional sales tax, special FED, and income tax without claim of any valid exemption/concessionary notification. It is mentioned here, that Federal Board of Revenue had posted Gul Rehman as Director PCAKarachi in January 2015 and the officer broke all the records as cases of tax evasion was detected to the tune of Rs 1 billion in six months despite the fact that the directorate is facing serious issues like shortage of staff etc.
04 NATIONAL
www.customstoday.com SEPTEMBER 15 - SEPTEMBER 21, 2015
FIA arrests two human smugglers, seizes 21 passports LAHORE: Federal Investigation Agency (FIA) started crackdown against human smugglers in Punjab province. Sources told Customs Today that the FIA team raided in Harbancepura and arrested two human smugglers who were identified as Mustaqeenud Din and Ghulam Husain who were involves in many smuggling activities. The FIA team also seizes 21 passports from the accused persons. These passports were being used for sending the innocent people to abroad illegally.
Zahid Khokhar’s enforcement-South collects Rs 3.596b duty Chief Collector Zahid Khokhar says smuggling of diesel has almost stopped KARACHI
AFTAB CHANNA
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Notificationofnew customsjudgesoon LAHORE
IMRAN MeHAR
www.customstoday.com fter the transfer of Special Judge of CustomsTaxation and Anti Smuggling Nazeer Ahmad Gajana hundred of cases in Court are lying pending which is effecting the prosecution process of Customs and other relevant departments. According to CustomsToday, sources it is expected that a notification will be issued during current week to appoint a new Judge in Special Court of Customs. Out-going judge of the Court Nazeer Ahmad Gajana was appointed here in March, 2015 and he served there for six months and decided hundreds of important cases during his tenure including famous cases of 14 kg gold smuggling, money laundering and GMSA tax evasion scandal of Faisalabad Inland Revenue. It is pertinent to mention here that Gajana was appointed after a period of 3 months after the transfer ofTanveer Akbar to Rawalpindi in December 2014. Now there are hundreds of cases which are pending in Customs Court and Court staff is busy in rescheduling all cases for new dates. Hundreds of pre arrest bails and post arrest bails are getting late which is effecting the provision of justice to the common citizens. There is only one Customs Court in whole Lahore Division, Gujranwala, Faisalabad and Multan and applicants are facing severe problems.
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he Model Customs Collectorates Preventive, Hyderabad, Quetta, Gwadar of Enforcement-South Region and Export (Port Muhammad Bin Qasim) have collected at least Rs 3.596 billion under the head of customs duty in August of the fiscal year 2015-16. According to the details available with Customs Today, the MCC-Preventive collected Rs 2.562 billion in terms of customs duty in one month, while Rs 308.63 million was collected on August 31. The MCC-Hyderabad collected an amount of Rs 90.38 million as customs duty and Rs 12.80 million in just a single day i.e. August 31, 2015. The MCC Exports (Port Muhammad Bin Qasim) collected Rs 27.60 million during August and Rs 6.02 million on August 31, 2015. Moreover, the MCC-Quetta collected Rs 279.31 million in the whole month, while Rs 30.16 million on August 31. The MCC-Gwadar collected an amount of Rs 222.89 million and Rs 52.33 million on August 31, 2015. Besides, the MCC Exports has collected Rs 414.19 million as customs duty in August 2015. The insiders told Customs Today that the revenue collection had been remarkably enhanced with the strong emphases and untiring efforts of Chief Collector-Enforcement-South, Zahid Khokhar who was encouraging the officials at every stage. In the months of July and August 2015, sources said, MCC Preventive collected at least Rs 4351.63 million customs duty, MCC Hyderabad col-
he Excise and Taxation Department Rawalpindi Motor Branch will issue new number plates for cars and jeeps. The auction will be held on September 15, sources said. As per details, the Rawalpindi Motor Branch will auction and issue new and attractive number plates for cars and jeep series RIB 15 on September 15. The RIB -15 series will consist of numbers from 1 to 100 and also double and triple digits numbers, sources said. —CT Report
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HYDERABAD
ASLAM ANJUM QUReSHI www.customstoday.com
he Customs Investigation and Intelligence Hyderabad has seized smuggled Iranian juice, cake and shampoos worth Rs 1 million during an operation in Hyderabad. Official source told CustomsToday that illegally imported goods were seized following a tip-off received through Deputy Director MohammadTayyab.The team intercepted a truck near Ayub Hotel by pass, Hyderabad and recovered 1,700 cartons of smuggled Iranian Juice, 100 cartons of smuggled cakes and 110 cartons of foreign origin shampoo. Under the supervision of Deputy Superintendent Sikander Hayat Khanzada and Irfan Khan, the customs intelligence team comprising InspectorYawar Abas, Sepoys Musrat Ali Shah, Noshad Khan, Azam Ali and others participated in the operation.The official said that after making the seizer report the confiscated contraband items would be deposited to the state warehouse in Hyderabad.
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FaisalabadCustoms seizesIndiancumin — Exclusive Customs Today photo
Chief Collector Zahid Khokhar lected Rs 121.17 million, MCC Exports (PMBQ) collected Rs 779.83 million, MCC-Quetta collected Rs 350.40 million and MCC-Gwadar Rs 403.93 million. Meanwhile, Chief Collector Enforcement-South Region Zahid Khokhar has said that smuggling of diesel is almost stopped, however, efforts are underway to ensure zero smuggling of diesel and others stuffs. During an exclusive interview with Customs Today, the chief collector said that with continued action against smugglers, a strong message has been sent to them that the Pakistan Customs will never allow
them to carry out their nefarious activities in the country. “There is conducive atmosphere in the country and Pakistan Customs is getting full cooperation of the law enforcing agencies, including Maritime Security Agency, Frontier Corps, Pakistan Rangers and Pakistan Coast Guards against the antisocial elements particularly the smugglers,” Khokhar said. “However, the Customs seeks more cooperation in Sindh province and the department is in constant touch with Pakistan Rangers to bust the hideouts of facilitators and supporters of smugglers,” he said.
ustoms intelligence and investigation seized smuggled Indian cumin and the vehicle which was being used to smuggle the item..The total weight of the seized cumin is 2,760 kilograms while its market value is Rs 1,000,000/-. Sources told Customs Today that Additional Director Customs Intelligence and Investigations Faisalabad received information regarding the smuggling of a huge quantity of Indian cumin . After receiving the information, he constituted a raiding team comprising Riaz Hussain (Deputy Director , Zahid Saleem Mirza, Muhammad Tahir Iqbal (SIO ), Mansoor Nasir, Farzand Ali(IO) Masood Iqbal, Ghulam Ghous, M. Aslam, Musadiq Ahmad, Tajamal Haq (sepoy’s ). —CT Report
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Peshawar Customs collects Rs 3.941b in two months PESHAWAR
excisetoauction newnumberplates
HyderabadCustoms Intelligenceseizes smuggledIranian goodsworthRs1m
NADIR KHAN
www.customstoday.com aintaining its record of collection under the heads of federal excise duty and custom duty, the Custom House Peshawar has collected Rs 1.810 billion in August while in the first two months of the new financial year, the department collected Rs 3.941 billion. According to statistical branch of Peshawar Custom House, the custom duty include warehouse surcharge Rs 0.73 million, regulatory duty on import and export Rs 16.17 million, custom duty Rs
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568.56 million, sales tax on import Rs 373.27 million sales tax on value addition commercial importers Rs 58.49 million and under the head of sales tax levied as FED VAT Mode Palm oil Rs 242.05 million. Similarly, under the head of federal excise duty on import, it collected Rs 0.06 million, federal excise duty on import per kilogram remained Rs 19.74 million, federal excise duty remained Rs 2.06 million and in gross the federal excise duty remained Rs 21.86 million. Other collection includes advance income tax Rs 333.65 million. Furthermore, the total collection of the first two months of the new financial year was Rs 1037.49 mil-
lion which includes import duty Rs 974.91 million warehouse surcharge Rs 0.83 million, miscellaneous collection Rs 28.21 million and regulatory duty Rs 33.54 million. Under the head of custom duty of the first two months of the new financial year, collection of Rs 823.52 million was made which includes sales tax on import Rs 698.94 million, sales tax on value addition Rs 103.56 million, and total sales tax on levied as FED was recorded at Rs 406.93 million. The federal excise duty of the two months was recorded at Rs 0.06 million. Under the head of total federal
excise duty on import, Rs 5.13 million was collected while in gross at least Rs 38.43 million federal excise duty was collected. In term of sales tax on import, the total collection of the last months was recorded at Rs 698.94 million while in lieu of sales tax on value addition, Rs 103.56 million were collected in the first two months of the new financial year. In term of Sale tax levied as the federal excise duty on palm oil, the figures of the first two months were recorded at Rs 406.93 million. Under the head of advanced income tax and gross federal excise duty in gross, the Peshawar Custom House collected Rs 570.40 million.
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SPECIALREPORT
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ISLAMABAD
FAIZA ISRAR
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ederal Board of Revenue (FBR) Member Research, Analysis and Reforms (RA&R) Ali Salman Abbasi has said that market research and new improved policies will increase the tax to GDP ratio, adding that department was working over to bring automation in the system to facilitate the taxpayers. In an exclusive interview with Customs Today, Abbasi said that research and reforms wing was eminent part of the FBR due its futuristic approach and research. He said that the major role and responsibility of it was to research and analysis of macroeconomic indicators of the whole gambit of the taxation, policies of FBR and its performance efficiency. He also indicated the major role of the wing signifying the coordination between FBR and the rest of donor groups including World Bank, International Monetary Fund (IMF) etc. FBR was working on different projects related
FBR working on different projects related to administration and structure of human resource reforms
to administration and structure of human resource reforms, he informed. Abbasi identified a WB funded project TAGA and hoped its results will accelerate the tax collection process in the country in coming two or three years. While sharing his views on the lowest tax to GDP ratio in Pakistan, he said that “tax to GDP involves several functions from business environment, mixed economy, internal affairs and national environment to international trends.” Taxation was central to the country and it needed more efforts to bring betterment in tax policies, member said, adding that incumbent government was working in the
best interest of the taxpayers. The FBR was making efforts to make the tax forms simpler to facilitate the taxpayers; Abbasi revealed and also added “tax return forms are simpler than the forms issued 15 years back to taxpayers.” He said as per the demand of the business community, the tax forms were being prepared in Urdu language, adding that this project required a huge investment to be realised. He further said that the interest of the taxpayers was foremost, adding that taxpayers and tax administration should have best liaison between them in order to tackle the issues faced by both sides due the lack of confidence. He said that FBR did not spon-
sor any organization or offer any fellowship to rest of the world in the field of research and revenue collection but indeed, lots of national and international funds were available in this regard and FBR facilitated its own officer to get training nationally and internationally. He said referring to the problems encountered by a member, flow of work was usual and there were not any huge problems faced by member as issues were sorted out on daily basis. Responding to a query, he said that RA&R wing has been divided in two groups namely Tax Policy Analysis Unit and Market Monitoring and Intervention Unit, following their nature of work. Under the cover of Tax Policy Analysis Unit, “we deal research, analysis of macroeconomic indicators their trends, implications, analysis of collection of direct and indirect taxes, tax expenditure, compliance cost on the mechanism of taxes and also conduct research for new taxation measures”, he said. However, the other unit covers the analysis of economic trends, audit of units and sectors on the directions of Board-in-Council, impact assessment of new tax measures and generation of evaluation reports on revenue responsiveness of each such measure. The research and development in the specific field can enhanced and facilitate taxpayers resulting in more efficient and effective collection in turn and simultaneously provide a comfort level, eliminate the unfair competition and curb the illegal activities.
SEPTEMBER 15 - SEPTEMBER 21, 2015
SPECIALREPORT 07
— Exclusive Customs Today photos
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08 EDITORIAL
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Founder & Chairman Zulfiqar Ali Editor Rahil Yasin editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
eDITORIAL
positive look of economy
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n article appearing in Washington Post gives a positive look of the political and economic situation of the country as terrorist attacks have declined by 70 percent and social and economic activities have started coming back to normal. The political leadership is in relaxed and optimistic mood and is trying to implement a road map for a peaceful and stable country. The political government is also trying to revitalize the sagging economy and raise the standard of living of less privileged stratum of society. The civil and military operations launched in various troubled areas of the country, including Karachi and tribal areas, have started giving results. The crime rate has declined in Karachi and peace is returning to the tribal areas. However, the country is facing acute and chronic energy crisis, unsettled relations with India and Afghanistan, and ‘bare-knuckled’ political system are hindering the economic development of the country. The government is facing economic as well as political challenges, but the fears of a civil war or economic collapse has been averted and world credit agencies and investment companies are advising investors to exploit business opportunities in Pakistan. The International Monetary Fund has extended a $6.2 billion loan and it expects a 4.1 percent growth in gross domestic product this year and up to 4.5 percent for the next year. However, economic challenges are a major area of concern for some analysts who are skeptical of the government ability to overcome corruption and ‘investor-rattling’ political crisis. They believe that the economic situation has improved due to fall in oil prices in the international market, but the element of real optimism is missing in the whole situation. As a matter of fact, the country could not rid itself of the evil legacies of the colonial era which are deep-rooted in every sector of life from financial discipline to overall economy. The performance of the government is not bad, but unless it brings basic changes in the official machinery, the country will continue to face challenges one after another. It is a good omen that Pakistan is expecting a huge Chinese investment in infrastructural projects which will give it an economic edge on the countries in the region, including India. No doubt economy is ruling the world in this age and the time has come the SAARC countries should forget the bitter past and look toward a common future. India should quit hegemonic style of foreign policy and come to terms with Pakistan and become partner of the Pak, China economic corridor.
Case of provincial economy LAHORE
DR AFTAB AFZAL
www.customstoday.com fter provincial autonomy has been entrusted on the federating units, it is the main responsibility of the provinces to devise trade and investment policies in their respective jurisdictions. However, treading on the beaten path, the political leadership as well as the official machinery has failed to launch progressive plans in any of the province, including Khyber Pakhtunkhwa where the Pakistan Tehreek-e-Insaf is in power with a slogan of a “change”. According to newspaper reports, the KP has emerged as the most unfriendly province from business point of view while Balochistan is regarded comparatively a better place for business and investment. The provincial government in KP is collecting 24 kinds of taxes. The number of taxes in Punjab is 17, in Sindh 14 and in Balochistan 13 which the provinces are
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collecting through various agencies. A host taxes are collected through a host of agencies, but the provinces still look toward the federal government for assistance and it provides them required funds by taking loans from international donor agencies. In Sindh province, the Sindh Revenue Board and the Excise and Taxation Department are the collecting agencies while in Punjab; four departments are involved in tax collection, including Punjab Excise and Taxation Department and Punjab Revenue Authority. Five departments each collect taxes in Balochistan and Khyber Pakhtunkhwa, but the element to provide essential human services is missing in all four provinces what to speak of Gilgit-Baltistan, FATA and Azad Kashmir. Political parties make tall claims during elections that they will change the lot of the people after coming to power, but forget everything after assuming the office. The answer is simple. Most of the political leadership is incapable of progressive vision and is the regular trav-
Things will not move in right direction unless the provinces take full responsibility of profit and loss in their respective domains
eller of the beaten tracks. Unfortunately, Pakistan is the only country in the world where the investors have to pay 47 kinds of taxes to start a business. In United States, a businessman gets all his legal and utility work done just in one day, but a businessman in Pakistan has to deal with several provincial departments and ‘pen of approval’ only moves when it is injected with money. Otherwise, the investor is harassed to the extent to pack and leave for another destination. However, the federal government is held responsible for every woe, which has its own merits and demerits. Things will not move in right direction unless the provinces take full responsibility of the profit and loss in their respective domains. The provincial governments should wake up and enact such laws which provide protection not only to local businessmen, but also to foreign investors. No one will stop them from embarking on the journey of development and prosperity if they have a will to do something for this nation.
NATIONAL 09
www.customstoday.com SEPTEMBER 15 - SEPTEMBER 21, 2015
Sialkot ASO seizes smuggled contraband items worth Rs 8m in August SIALKOT: The Customs Anti-Smuggling Organization (ASO) Sialkot has confiscated smuggled goods and vehicles worth Rs 8 million during August of current fiscal year 2015-16. According to the details, ASO Sialkot conducted various operations against the smuggled goods following the instruction of Model Customs Collectorate Collector Dr. Zulfiqar Ali Chaudhary and almost 12 different seizure cases were formed against smuggled miscellaneous goods and non-customs paid vehicles.
FBR transfers 3 collectors, 47 BS-19 oďŹƒcers of pCS CollectorsTauseef Ahmad transferred to IOCO Lahore, Collector Dr Zulfiqar Ali to Faisalabad Customs and Collector Ahmad Reza Khan to Sialkot Customs ISLAMABAD
CUSTOMS TODAY RepORT www.customstoday.com
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BR has notified transfers of three BS-20 officers and 47 BS-19 officers of Pakistan Customs Service (PCS). As per details, Collector Model Customs Collectorate (MCC) Faisalabad Tausif Ahmad Qureshi has been transferred to director, Directorate of Input Output Coefficient Organisation-North (IOCO), Lahore, besides Collector MCC Sialkot Dr. Zulfiqar Ali Ch, was transferred to collector, MCC Faisalabad. Similarly, Collector Collectorate of Customs Adjudication Lahore, Ahmad Reza Khan, was made collector, MCC Sialkot. Muhammad Akram Ch, Chief, (OPS) Legal Wing-FBR, Islamabad was transferred and posted as director, (OPS) Directorate of Internal Audit-Customs, Lahore. The officers transferred include Iftikhar Ahmad moved from additional collector Appraisement-West Karachi to Chief (Ops) Customs Wing FBR, while Sadiqullah Khan has been transferred to the office of additional director, Directorate of Training and Research-Customs, Islamabad from the office of additional collector, MCC Gilgit-Baltistan. Shafique Ahmad Latki was moved to additional collector, Collectorate of Customs Adjudication-II, Karachi from additional collector, MCC Port Muhammad Bin Qasim, Karachi, besides Engr. Riyaz Ahmed Memon was shifted to the office of additional collector, Collectorate of Customs Adjudication, Quetta from additional col-
WRITe TO US YOUR gRIeVANCeS: Through CUSTOMS TODAY platform HeLp DeSK, now you have chance to DIReCTLY write your problems to top govt. functionaries. If you have any grievances, queries, questions or suggestions, you can write in this section as it provides easiest access to you to approach Customs and Revenue authorities. WHO can write in this section? Importers & Exporters, Customs Agents, Chambers of Commerce, Trade Associations and Customs Officers TO WHOM you can write? Honourable PM, Minister/Secretary for Finance & Revenue, Minister/Secretary for Ports and Shipping, FBR Chairman, Member Customs and Chairperson Senate/National Assembly Standing Committee on Finance & Revenue. Send your letters at: newsdesk@customstoday.com.pk
lector office of MCC Hyderabad. FBR also transferred Dr. Muhammad Nadeem Memon to the post of additional director at Directorate General of Customs Valuation, Karachi from the office of commercial counsellor, Embassy of Pakistan, Brazil and Faiz Ali to the post of additional collector, MCC Sialkot from additional director, Directorate General of Internal Audit-Customs), Islamabad. Asif Abbas has been posted as additional director in Directorate of Internal Audit-Customs Lahore, from additional collector office of MCC Faisalabad, while Ambreen Ahmad Tarar has been assigned task at Directorate of Intelligence and Investigation Lahore as additional director, from additional director, Directorate of IOCO-North, Lahore. Shafqat Ali Khan Niazi will take charge as secretary in Customs Wing of FBR (HQ), Islamabad after relinquishing the charge of additional collector from MCC Port Muhammad Bin Qasim, Karachi, besides Azmat Tahira has been shifted to Directorate of Intelligence Faisalabad as additional director from additional director, Directorate of Customs Valuation, Lahore. Similarly, FBR has transferred Saima Aftab as additional director in Directorate of Post Clearance Audit (PCA), Islamabad from additional collector, Collectorate of Customs Adjudication, Lahore and Sadia Munib to the office of secretary Customs Wing FBR HQ Islamabad from additional collector MCC Preventive Lahore. Masood Ahmed was transferred as additional director at PCA, Islamabad from additional collector, Model Customs Collectorate, Islamabad, while Syed Naeem Akhtar will take
charge as secretary, Customs Wing, Islamabad after leaving the office of additional collector from MCC Appraisement-West, Karachi. Similarly, Muhammad Tahir was transferred to additional collector, MCC Port Muhammad Bin Qasim, Karachi from additional collector, MCC Appraisement-East), Karachi; Munib Sarwar to secretary, Customs Wing, Islamabad from additional director, Directorate of Post Clearance Audit, Lahore. Muhammad Ismail to additional collector, MCC Appraisement, Lahore from additional director, Directorate of Intelligence and Investigation, Faisalabad and Tayyeba Kayani Moeed to additional collector, MCC Appraisement-East, Karachi from additional collector, MCC Appraisement, Lahore. Muhammad Ashfaq to secretary, Customs Wing, Islamabad from additional director, Directorate of Training and Research-Customs, Islamabad and Zeb Gul Shabbir to additional director, Directorate of Customs Valuation, Lahore from Additional Director, Directorate of Internal Audit-Customs, Lahore. Moin-Ud-Din Ahmad Wani was transferred to additional collector, MCC, Peshawar from deputy secretary, President’s Secretariat, Islamabad and Sameera Sheikh to additional collector, Customs Central region, Lahore from additional director, PCA, Lahore. However, Beelam Ramzan was shifted as additional collector in Collectorate of Customs Adjudication, Faisalabad from additional collector, MCC Preventive, Lahore and Zahra Haider as additional collector, in Customs Adjudication, Lahore from additional collector, MCC Appraisement,
Lahore. Jameel Ahmed Baloch will assume post of secretary at Customs Wing, Islamabad from additional collector, MCC Appraisement-East, Karachi and Dr. Shahab Imam to assume post of additional collector, MCC Exports, Karachi from additional collector, MCC Appraisement-East, Karachi. Additional Collector MCC Appraisement-West, Karachi Muhammad Nayyar Shafiq will assume charge in same capacity at MCC Port Muhammad Bin Qasim, Karachi and Additional Collector Customs Adjudication Faisalabad Amjad-urRahman will take charge as additional director, Directorate of Transit Trade, Peshawar. Ayesha Niaz was transferred to the office of additional director, Directorate General of Intelligence and Investigation, Islamabad from the office of additional director, PCA Islamabad and Kh. Khurram Naeem to the office of additional collector MCC Islamabad from the post of additional collector MCC Sialkot. Syed Fazal Samad was transferred as additional collector in MCC Peshawar from secretary, Customs Wing Islamabad and Muhammad Haris Ansari to additional director, Directorate of Intelligence and Investigation, Karachi from secretary, Customs Wing, Islamabad. Secretary Customs Wing, Islamabad M. Ali Zaman Gardezi has been transferred to Collectorate of Customs Adjudication-I, Karachi as additional collector and Sajjad Hyder Jhin Jhin to Additional Director, Directorate of IPR Karachi from additional collector, MCC Quetta. The FBR transferred Muneeza Majeed to additional director, Directorate of IPR, Lahore from additional
director, Directorate of Training and Research-Customs, Lahore and Muhammad Arshad Khan to secretary, Customs Wing, Islamabad from additional collector, MCC Appraisement-East, Karachi. Asdaq Afzal Sensera was sent to MCC Gilgit-Baltistan as additional collector from the post of additional collector, MCC Sialkot and Farid Ahmed Khan Salarzay to MCC Quetta as additional collector from additional collector, MCC Peshawar. Similarly, Additional Collector, Collectorate of Customs Adjudication Faisalabad, Muhammad Saeed Asad has been transferred to MCC Faisalabad in same capacity, while Muteen Alam to additional collector, MCC Appraisement-East, Karachi from deputy collector, MCC Multan. Adnan Iqbal Sawati has been shifted to additional director, IOCOSouth, Karachi from deputy collector, MCC Appraisement-West, Karachi and Mona Mehfooz to additional director, Directorate of Transit Trade, Karachi from the post of deputy collector, MCC Exports, Karachi. Deputy Collector MCC Appraisement-West Karachi, Abdul Haye Sheikh was transferred to Directorate of Reforms and Automation-Customs, Karachi as deputy director and Amer Rashid as additional collector to MCC Preventive, Lahore from deputy director, Directorate General of Training and Research-Customs, Karachi. Shalra Khan to Additional Collector, Model Customs Collectorate, Islamabad from Deputy Collector, Model Customs Collectorate, Islamabad and Yasin Murtaza is moved to the office of Additional Collector, Model Customs Collectorate of Appraisement, Lahore from the post of Secretary FBR HQ Islamabad.
Issuance of SRO No 877 (I)/2015 without compliance of statutory requirements To Tariq Bajwa Chairman Federal Board of Revenue, Islamabad Dear Sir, I would like to draw your kind attention towards a serious issue regarding issuance of SRO No. 877 (I)/2015 without compliance of statutory requirements. It is hereby mentioned, referring to SRO No. 850(l)/2015 dated 27.08.2015 which is draft for amendment in Part-ll F of the Second Schedule of the Income Tax Ordinance, 2001 until fifteen days of its publication in official Gazette and by virtue of this SRO, we request you for early address of grievances faced by taxpayers. Being representatives of our bar, I circulate the
notification to our worthy members for any objection or suggestion but in contrary FBR shows hasty manners and issued SRO No. 877(ll)/2015 dated 01.09.2015 within four days of the earlier SRO without fulfil the compliance of statutory requirements of law. Our worthy members has handed over various suggestions/objections to send the same to FBR but in contrary we feel that all such exercise of our members for the promotion of effective tax culture in country went in vain. We hope that your good office will take above consideration seriously to overcome the issue and will issue necessary directions to withdraw the SRO 877(t)/2015 dated 01.09.2015 forthwith to eliminate the hardship. Yours faithfully, M. Imran Ghazi, General Secretary, Multan Tax Bar Association
10 NATIONAL
www.customstoday.com SEPTEMBER 15 - SEPTEMBER 21, 2015
Customs seizes vehicle loaded with smuggled generator ISLAMABAD: Customs Intelligence Rawalpindi seized a vehicle loaded with non duty paid generator on a random checking at a check point and arrested one accused. As per details, Customs Intelligence intercepted vehicle bearing registration number C- 4071 at Rawat area check post. During checking process of the vehicle Customs team recovered a non duty paid generator. Meanwhile customs investigated the driver who was identified as Muhammad Shehzad. He told that owner of generator directed him to take generator from Gujrat to Rawat.
pIAF-Founders Alliance all set to make clean sweep in LCCI polls 2015-16 LAHORE
M HAYAT
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— Exclusive Customs Today photos
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IAF- Founders Alliance will make a clean sweep as it has always done its utmost to resolve issues and grievances of business community of Lahore while the opposition stands nowhere as mere chanting of slogans does not work. The Alliance on the other hand has taken up on priority basis issues whether it is concerning with taxes, energy crisis, law and order or their security. These comments were made by PIAF-Founder Alliances central leadership while talking to Customs Today following the inauguration ceremony of PIAF Founder Alliance election campaign and declaration of its candidates for Lahore Chamber of Commerce and Industry (LCCI) Election 2015-16 here. On the occasion, an overwhelming majority of traders was present here at a local hotel. PIAF Founders Alliance Chairman Irfan Iqbal Sheikh said that the Alliance has been making a clean sweep for the last 12 years and this year it will follow the suit with a vast majority. The opponent group is standing nowhere as it is as weightless as a paper, he lamented, adding that it will be proved during the elections that PIAF-Founder Alliance is real voice of the Lahore business community. LCCI presidential candidate Sheikh Arshad said he had never expected such a large and superb majority of traders and industrialist in the LCCI election inaugural campaign. He believed that PIAFFounder Alliance will secure a thumping victory. He said I beg from the Almighty Allah to grant us the strength to serve the business community and be able to do justice with our positions. Irfan Qasir Sheikh sated that the
Alliance has been winning elections for the last 12 years with tremendous majority of traders and industrialist. It is the testimony of the alliances has worked for the business community and its leaders are popular amongst the traders and industrialist. He said that Alliance will make its mark on September 21 and 22 by winning the LCCI Election 2015-16. Mian Anjum Nisar told this scribe that PIAF- Founder Alliance has provided a visionary leadership to the business com-
munity of Lahore and I am hopeful that this time also the Alliance will make a difference. He added that this time also a very tried and tested majority of candidates have been nominated by the Alliance. He believed that the Alliance has been serving the community with full zeal and zest and the Alliance candidates will make a clean sweep. On the other hand, Muslim League traders wing President Nasir Saeed has extended his full
support for the PIAF Founder Alliance. “Not only the business community of Lahore but also traders, industrialists hailing from across Punjab will vote and support the Alliance,” Saeed said. He said that Alliance will make a clean sweep in LCCI election 201516 like it has been doing for the past 12 years in both corporate and associate classes as the Alliance has enormous achievement for the business community of Lahore to its credit. Sheikh Asif said that the PIAF-Founder Alliance victory is
above board and this is because the Alliance leadership is committed to serve the business community of Lahore. “We stand committed and duty bound to resolve the issues of business community. We have no connection with politics. We are concerned with Federal Board of Revenue, Commerce Ministry and Finance Ministry and we never hesitated to take up the community’s grievance with these departments of the state, he concluded.
SHC conditionally allows importer to dump 20,000 MT coal KARACHI
MUHAMMAD YOUSAF www.customstoday.com
he Sindh High Court (SHC) on Tuesday conditionally allowed an importer to dump 20,000 metric tons the coal at the Karachi Port Trust’s coal terminal. Justice Sajjad Ali Shah, who headed the division bench, directed the importer to ensure that the coal is removed from the terminal within 15 days. Applicant Awan Trading Com-
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pany (Private) Limited moved the court, submitting that a vessel carrying over 50,000 metric tons of the coal has arrived at the Karachi Port. A vessel carrying over 40, 000 metric ton coal cannot berth at Port Qasim, therefore, if it is once allowed to lighten its weight approximately 20,000 metric tons, it can sail into the berth at Port Qasim. Therefore, the counsel for the applicant requested the court to allow the applicant to dump 20,
000 metric tons of the coal at KPT’s coal handling facility. Earlier, the bench while hearing a petition against KPTs coal terminal for posing serious threats to the health of the area’s residents and causing marine pollution had directed KPT authorities to adopt various preventive measures to ensure minimum eruption of dust from the terminal. It further ordered them to ensure that the premises where the coal was kept, as well as the vehicles transporting the coal, should
be completely covered. Observing that the terminal is located in close proximity to the densely populated area, the Court directed the KPT to allow importers to offload only 15,000 metric tons of the coal for only 15 days at the terminal in order to lighten the weight of vessels for their sailing into berth at Port Qasim where the rest of the coal would be offloaded. The judges observed that meager storage charges are inducing people to store coal for longer pe-
riod of time which is causing pollution and effecting public at large. Therefore, they said, they feel that some stringent measures be put in place to compel importers to remove stored coal within shortest possible time. The Court had ordered imposition of penalty of Rs 20 per metric ton per day upon failure of the importers to remove the coal within 20 days of storage. The penalty should be recovered and deposited with the Nazir of the Court.
CARTOONSSPECIAL 11
www.customstoday.com SEPTEMBER 15 - SEPTEMBER 21, 2015
Faisalabad ASO seizes non-duty paid Toyota Land Cruiser FAISALABAD: The Anti-Smuggling Organization (ASO) Faisalabad seized a non-duty paid Toyota Land Cruiser. Sources told Customs Today that officials received credible information that a non-duty paid vehicle is plying on the roads of Faisalabad. After receiving information, a raiding team was constituted, comprising Zahid Bukhari (superintendent), Safder Ali Mehmood Ahmad (inspectors), and Muhammad Naeem, Muhammad Salam, Atta Muhammad, Haffiz Naseer,and Liaqat Ali (sepoys).
Customs official submits challan against suspect for selling smuggled Iranian HSD KARACHI
MUHAMMAD YOUSAF www.customstoday.com
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yed Mirajuddin, investigation officer of the Pakistan Customs, has submitted a challan in Special Court of Customs Taxation and AntiSmuggling in a case pertaining to the sale of smuggled Iranian HSD. Mirajuddin submitted the challan before Judge Syed Faiz Rasool Rashdi, declaring one suspect Rustam Zaman as arrested and another suspect Imtiaz Khan as absconder. At the outset, the counsel for Rustam Zaman filed an application, seeking his release on bail. The judge issued notice to the customs prosecutor to submit response to the application by September 28. According to the prosecution, the Directorate of Intelligence and Investigation seized 40,000 liters of Iranian HSD from North Karachi Industrial Area on August 26. The Customs officials received information that Imtiaz Khan was involved in sale of smuggled Iranian origin HSD in Karachi. Subsequently, the antismuggling squad of the Customs Intelligence raided a place in
North Karachi Industrial Area and seized 40,000 liters of smuggled Iranian HSD. The team
sealed the illegal dumping place and impounded a vehicle bearing registration No: TKE-788 fitted
Multan RTO surpasses revenue collection target in August
MULTAN
IMRAN ALI KHAN
www.customstoday.com he Federal Board of Revenue (FBR) Regional Tax Office Multan has surpassed the collection target during the second month of fiscal year 2015-16. The FBR had allotted the collection target of Rs 5.32 billion for the month of August during the on-going
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economic year 2015-16. The revenue collection target for the month of August includes Income tax, sales tax and federal excise duty. The target for the collection of income taxes was set at Rs 1.78 billion. The Regional Tax Office Multan has collected income tax of Rs 1.82 billion against the set target of Rs 1.78 billion during the month of August. Almost 102 percent target has been attained by the Regional Tax Office Multan in August.
The assigned target of sales tax collection for the Regional Tax Office Multan from the FBR for August was Rs 3.31 billion during the current fiscal 2015-16. Just about Rs 3.61 billion amount of sales tax has been collected by the Regional Tax Office Multan from the potential tax payers. Almost 109 percent sales tax has been achieved in August in the current fiscal year 2015-16. The FBR has allotted the collection target of almost Rs 230 million federal excise duties to Regional Tax Office Multan for the month of August in the existing economic year 201516. The Regional Tax Office Multan has collected almost Rs 45 million during the month of August 2015 in the current fiscal year 2015-16. The Regional Tax Office Multan remained unsuccessful to reach the federal excise duties during August. Overall the Regional Tax Office Multan has collected target of Rs 5.47 billion against the set target of Rs 32 billion including income taxes, sales taxes and federal excise duty in the month of August during the present fiscal year 2015-16.
with clandestine fuel tanks filled with 6,900 liters of smuggled oil. Accused Rustam Zaman,
driver of the vehicle, was arrested and an FIR was registered against him and Imtiaz Khan.
Sialkot RTO collets Rs 700 million in August SIALKOT
gULZAR AHMeD
www.customstoday.com
he Federal Board of Revenue (FBR) RegionalTax Office (RTO) Sialkot has achieved its Rs 700 million tax recovery target set for the August 2015. According to details, RTO Sialkot has collected the tax under the head of income tax ,sales tax and federal excise duty (FED) during the said period.The regional office was trying hard to achieve its revenue target for the running fiscal year 2015-16, official said, adding that latest techniques and strategies were being adopted to expand the tax base in the region.They added that RTO has formulated special recovery teams, which make it possible for the department to meet the target.
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SEPTEMBER 15 - SEPTEMBER 21, 2015
Hyderabad Customs Intelligence seizes smuggled chocolates HYDERABAD: The Customs I&I Field Investigation Unit Hyderabad has confiscated smuggled chocolate, t-shirts, sauces and art cloth worth Rs 2 million during various raids in Hyderabad. The FIU Hyderabad team, acting upon credible information received through Deputy Director Mohammad Tayyab, conducted various raids to foil smuggling attempt in the region. Deputy Superintendent Sikander Hayat khanzada, Deputy Superintendent Irfan Khan, Inspector Noor Mohammad Shah, Sepoy Noshad, Azam Ali and others participated in the operation.
Sound economy backbone of national defence: Shahid Asad IR-policy Member Shahid Asad urges business community to submit their tax returns honestly so that economy could thrive ISLAMABAD
MUHAMMAD FAIZAN www.customstoday.com
— Exclusive Customs Today photo
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ederal Board of Revenue (FBR) Inland Revenue-Policy Member and Spokesman Shahid Hussain Asad has said that there is no difference between the people who are opposing the levy of withholding tax and those who were asking the people not pay utility bills and income tax last year during sit-in by Pakistan Tehreek-e-Insaf. During an exclusive interview with Customs Today, he said that withholding tax is only for non-filers and on banking transactions. “All those people who are regularly submitting their tax returns need not to worry about withholding tax,” he said. He also said that those persons who will file withholding tax will not be included in defaulters list. He also revealed that withholding tax is adjustable. A tax filer can claim return of withholding tax. If the amount of withholding tax exceeds than the taxable amount, then the remaining amount will be refunded to the taxpayer. He further said that India is ready to impose a war on Pakistan and it is the national duty to strengthen the national economy, because sound economy is the backbone for defence of any country. He said that in the population of 180 million, only 0.9 million file tax returns, showing that only 0.5 percent people are in the tax net. He said that in India the percentage of tax to GDP ratio is 17.7 percent, while in Pakistan, the percentage is 9.4 percent. He appealed to the business community to submit their tax returns honestly so that the economy could gain momentum. Shahid Hussain
Asad said: “If we lose a cricket match against India, the whole national becomes sad but we are far behind in strengthening of our economy as compare to India. We should take sound measures to defeat India in
FBR Spokesperson Shahid Hussain Asad the field of economy also.” time obtained from wealthy people Shahid Hussain Asad said that and used it on the betterment of the Hazrat Abu Bakr Siddique (RA), he people. He remembered that in 1965, announced “Jihad” against those who the then President Field Marshal denied o pay zakat because it was the Ayub Khan raised the slogan of “one only tax which the government of the penny two tanks”. It means that Rs 1
million could be generated through a donation of one penny by a citizen at that time. “The same situation is arising nowadays and it is our national duty to strengthen the national economy,” he concluded.
SHC seeks comments from customs on confiscated wheat KARACHI
MUHAMMAD YOUSAF www.customstoday.com
he Sindh High Court (SHC) has sought comments from the Customs authorities on a petition by M/s Thara International, seeking release of its confiscated wheat for re-export to Ukraine. In its petition, M/s Thara International submitted that it imported a consignment of wheat from Ukraine in September 2014, which was illegally confiscated by the customs staff on the ground that wheat is contaminated and
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not fit for human consumption. The counsel for the petitioner said that the Customs Adjudication issued Order-in-Original, ordering confiscation of 57 containers stuffed with the wheat. Aggrieved by the ONO, he said, the importer filed an appeal against it before Collector of Customs (Appeals) which decided in importer’s favor and allowed it to send the contaminated wheat back to the supplier subject to permission of the Ministry of Commerce. Subsequently, the counsel said, the petitioner approached the ministry concerned to seek its permission and
Court was requested to order authorities to release empty containers
through letter dated March 2015, it granted the petitioner’s plea for re-export of the wheat. Nevertheless, the customs authorities are not releasing the wheat for its export, he complained. He lamented that the customs officials are not even releasing the empty containers due to which charges are incurring with each day. He said that the importer had also filed two appeals before the Customs Appellate Tribunal against the Pakistan Customs which are pending for disposal. The counsel told the judges that the customs officials taken random samples of wheat for examination in ab-
sence of officials of the Plant Protection Department and representatives of the importer and sent them to the laboratory for testing and, resultantly, it found that the wheat is contaminated and unfit for human consumption. He requested the Court to order the customs authorities either to seek assistance from the Plants Protection Department for fumigation and re-testing of the wheat or release the seized wheat so that it could be exported to the supplier. The Court was further requested to order the authorities to release the empty containers.
Published by M. F. Riaz, Off. 91, 3rd Flr, Gul Plaza, M.A. Rd., Karachi, for Customs Today and Printed at Dhoom Printing Press Masheer Mahal Building, Off: I. I. Chundrigar Road, Karachi