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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
ABC Certified Vol 4 Issue No. 5
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Karachi, Tue Dec 22 - Mon Dec 28, 2015
Regd. No, MC-1381
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SHOWING PERFORMANCE
Chairman Nisar Muhammad Khan’s FBR collects Rs 50.75 billion during first 12 days of December, 2015. | SEE PAGE 02 | HITTING SMUGGLING
Collector Tariq Huda’s ASO holds smuggled goods worth Rs 2.03 billion since his appointment. | SEE PAGE 03 | TIGHTENING NOOSE
Director Asif Marghoob’s intelligence seizes contraband items worth Rs 95 million in December so far. | SEE PAGE 09 |
ISLAMABAD
MUHAMMAD FAIZAN www.customstoday.com
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iscouraging favouritism and sticking to merit will not only make the Federal Board of Revenue (FBR) a prestigious department but also prove helpful in achieving the set revenue targets. FBR Administration Member Waqar Ahmad shared his views while giving an exclusive interview to Customs Today, adding that “as a government servant, I follow the rules and regulations at every step and expect the same from subordinates.” “The FBR will work on all aspects that have not been given proper attention in the past,” Ahmad said, adding that the main purpose of all measures was to raise tax collection. “As a chief commissioner at Regional Tax Offices (RTOs), I achieved the as-
signed target by 200 percent many times,” he said, besides suggesting that tough goals could be made achievable by staying on the course with determination. The member said that if all wings of FBR including Administration Wing performed their duties well but the target was not achieved, it means there were some loopholes that must be plugged. FBR was not facing shortage of staff; he said and added that department could not depute a staff of 100 officers in an area where tax collection is comparatively low. He highlighted that FBR will enhance the staff at those areas, which have potential to increase tax collection. He said that actions against corrupt and miscreant officials were taken following the recommendations of department concerned but after verifying the evidence. Expressing love for his homeland, Pakistan, the member said that he wanted to serve the country through his honesty and
SEIZING CONTRABAND
Collector Ahmad Reza’s ASO confiscates mobile phone accessories worth Rs 1 million. | SEE PAGE 04 |
— Exclusive Customs Today photos
If all wings of the FBR performed their duties well but the target was not achieved, it means there were some loopholes that must be plugged hardworking, adding that all officers should work on same pattern, as the country demanded such devoted persons. Member Waqar Ahmad said that Pakistan provided us save heaven and respect in the world; therefore all the natives should strive for its progress.Everyone has talent to perform his duty in well manners but there was required to select right path to convert pledges into actions, he said. The member said that talented persons are key players of the department. Hailing the appointment of Nisar Muhammad Khan as FBR chairman, he said that FBR chairman was an experienced officer and has leadership qualities to bring change at lower level of the department. He said that every wing of the FBR was answerable before the authority concerned, adding that “we should perform our duties with honesty and hardworking in order to achieve desired results.
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NATIONAL
DECEMBER 22 - DECEMBER 28, 2015
Rawalpindi Excise challans 288 vehicles
ISLAMABAD: The Excise and Taxation Department has challand 288 vehicles during general hold up against the token tax defaulters and unregistered vehicles. According to details, the Excise Rawalpindi conducted operations in Rawalpindi, Jhelum, Chakwal and Attock against the token tax defaulters and unregistered vehicles. On the direction of Director Excise and Taxation Rawalpindi Tanveer abbas Gondal, special teams are taking part in the general hold up in all districts and will support the districts excise department in this regard.
FBR generates Rs 43b WHT from pre-paid mobile phone users
FBR collects Rs 50.75b taxes in 12 days under Chairman Nisar
ISLAMABAD
FBR finds 458 persons involved in smuggling and tax evasion
www.customstoday.com he Federal Board of Revenue has collected Rs 43 billion on account of withholding tax during 2014-15. Only 0.9 million out of 120 million total users deposited tax return claims and got back what they paid in advance. The remaining amount of more than Rs 40 billion was automatically confiscated by the government at the end of the financial year, officials of FBR told the Senate Standing Committee on IT. FBR officials informed that on every mobile card re-charge of Rs.100, mobile phone companies deduct 14% withholding tax whereas 19.5% is charged as federal excise duty in capital or as provincial tax in provinces. Answering a question, the FBR officials clarified that the telecom companies and thousands of franchisers were charging the 14% advance tax from consumers on every recharge but neither FBR nor PTA has human or technological expertise to check whether the huge advance tax collected from users was actually deposited in national exchequer or not.
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RoziKhantosupervise promotioncommittee inCentralRegion
ISLAMABAD
SHAHID MINHAS/M FAIZAN www.customstoday.com
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he Federal Board of Revenue (FBR) has collected Rs 50.75 billion taxes from December 1 to December 12, 2015, under supervision of new Chairman Nisar Muhammad Khan. According to details, during the 12 days, the FBR collected Rs 17.24 billion in terms of income tax and Rs 20.53 billion in terms of sales tax while it collected Rs 12.7 billion under head of customs duty. Moreover, the FBR has shown significance increase in the federal excise duty and collected Rs 29 billion during the said period. Meanwhile, the FBR has issued Rs 180.7 million income tax refunds to the taxpayers while Rs 2.9 billion in the term of customs rebate during 12 days of this month however FBR has issued Rs 40 million sales tax refunds during the said time period. On the other hand, the Federal Board of Revenue (FBR) intelligence and investigation detected 458 persons who have gone on 320 foreign tours during 365 days of 2015. Customs intelligence termed this situation alarming as lower staff is also involved in this wrongdoing. After investigation it was revealed that these persons have been used by some big tax defaulters for importing and exporting high value items showing their own possession while on the other hand they were actually transporting their smug-
— Exclusive Customs Today photo
SAJID IMITIAZ
FBR Chairman Nisar Khan
gled items worth millions. Customs official said it is an alarming situation as some of the lower staff is also involved in this. Customs intelligence has started further investigation to curb smuggling and catch the culprits.
Meanwhile, the Federal Board of Revenue (FBR), refuting some media reports, has explained that the dialogue with International Monetary Fund (IMF) in Dubai was completely successful as the desired objectives were achieved during the
— Exclusive Customs Today photo
Appraisement-East seizes 3 sand blocks-filled containers T
KARACHI
AFTAB CHANNA
Chief Collector Rozi Khan Burki BR has constituted Departmental Selection Promotion Committees under the chairmanship of CustomsNorth Chief Collector Razi Khan Burki, to supervise the promotions in the Pakistan Customs by the notified committees. Sources told CustomsToday that the FBR had assigned him the task of supervision in customs from grade BS-1 to BS-15 in the Central region. Chief Collector Rozi Khan Burki would supervise promotions in Model Customs Collectorate Appraisement, Preventive Lahore, Sialkot, Multan, Directorate General of Internal Audit, CustomsValuation, IOCO (North), Training and Research and Post Clearance Audit (PCA) Lahore. —CT Report
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he Model Customs Collectorate Appraisement-East, under the leadership of Collector Majid Yousfani, has seized three containers laden with sand blocks in place of imported pulses, it is learnt. Sources told Customs Today that Research and Development (R&D) official on intelligence information checked three containers at the Qasim International Container Terminal (QICT) and found that these containers contained sand blocks. “The documents reveal that pulse was imported by the importer from Tanzania and the same were shifted to NLC terminal”, sources added. According to the sources, further investigations were underway and intelligence authorities were checking all aspects of the consignment.
— Exclusive Customs Today photo
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Collector Majid Yousfani
While, the importer’s demand of allowing him up to the container and his repeated demands that he would file insurance claims make the whole
process doubtful, the sources added. The sources further added that it was feared that the containers might have been change or the pulses were off-loaded while their transfer from QICT to NLC. Separately, Collector Majid Yousfani had asked the Federal Board of Revenue (FBR) to update withdrawal of sales tax on import of Maize Starch in WeBOC system as the importers are yet taking undue benefits of the concessions, it is learnt. “The Board vide SRO 486(I)/2015 dated 30.6.2015 had withdrawn the exemption of sales tax levy on import of Maize Starch classifiable under HS Code 1108.1200 notified vide SRO 11225 (I)/2011 dated 13.12.2011”, according to a letter forwarded to Abdul Hameed Memon, Chief (Automation Sales Tax), Inland Revenue Wing, Federal Board of Revenue, by Collector MCC Appraisement East Majid Yousfani.
meeting. The FBR, in a press statement here, contradicted news published in a section of the press regarding failure of the dialogue and that the plans to implement the proposed Single Stage Sales Tax had been shelved on the IMF’s advice. It clarified that a delegation of FBR and Tax Reforms Commission held a Tax Policy Dialogue with the tax policy experts from the Fiscal Affairs Department of IMF in Dubai (United Arab Emirates). Various aspects of the matters relating to tax policy under the Customs, Sales Tax and Income Tax laws in Pakistan were discussed in the light of international best practices, it added. The FBR said the purpose of the dialogue was not to obtain approval or concurrence for any specific policy option which was neither required nor was sought. The dialogue was aimed at an exchange of views between the FBR and international tax policy experts in an attempt to gain insight from the varied experiences of the world, it added. The dialogue, the statement said, was completely successful and the desired objectives were achieved. The statement said the government was fully committed to provide ease of doing business for the business community and would not hesitate to accept any proposal that would facilitate the taxpayers without compromising the revenue streams. It again denied the reports that the proposed Single Stage Sales Tax was not approved and that any approval in this connection was solicited from the IMF.
IHC issues notice to CAT in a customs reference ISLAMABAD
NAEEM ULLAH TARIQ www.customstoday.com
he Islamabad High Court (IHC) has issued a notice to Customs Appellate Tribunal for appearing before the court in a customs reference case on January 14, 2016. The court has issued notices after a customs reference in a case filed by Hadiri Beverages (Private) Limited. The notices states:“you (the tribunal) are hereby summoned to appear in this court (IHC) in person or by a pleader duly instructed and able to answer all court’s questions relating to the matter on 14/01/2016.” The notice further cautioned that“in default of your appearance on the day before the court, the case will be heard and determined in your absence.”
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NATIONAL 03
DECEMBER 22 - DECEMBER 28, 2015
State Bank proposes FBR to start tax collection drive
ISLAMABAD: State Bank of Pakistan proposed that Federal Board of Revenue should start a full taxation campaign for revenue generation it is learnt here. Sources added that State Bank asked FBR to take details from NADRA about possible taxpayers and sent them notices if this measure become successful it will improve the revenue collection and it is also proposed that FBR should take long term initiatives along with temporary steps for revenue enhancement.
Chief Collector SarwatTahira to supervise promotions in Customs-North KARACHI
AFTAB CHANNA
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Collector Tariq Huda’s ASO holds all the aces against smuggling KARACHI
ABDUL REHMAN
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Chief Collector Sarwat Tahira
ustoms-North Chief Collector Sarwat Tahira Habib has been assigned to supervise the promotions in the Pakistan Customs by the notified committees of the Federal Board of Revenue (FBR). Sources told Customs Today that the Federal Board of Revenue (FBR) had assigned her the task of supervision in customs from grade BS-1 to BS-15 in the region. Chief Collector Sarwat Tahira Habib would supervise promotions in the Model Customs Collectorate Islamabad, Gilgit Baltistan and Peshawar, Director General Training and Research, Directorate General of Internal Audit and the Post Clearance Audit (PCA) Islamabad.
— Exclusive Customs Today photo
— Exclusive Customs Today photo
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fter assuming charge by Collector Tariq Huda, the Model Customs Collectorate Preventive’s Anti-Smuggling Organisation (ASO) set numbers of achievements, as it confiscated smuggled items worth Rs 2030 million, besides arresting many smugglers during almost two years and four months. Collector Tariq Huda who is committed to his work took charge at Customs Preventive on August 24, 2013 and solved unsettled cases by moving on the track of success. Keeping his performance in view, the Federal Board of Revenue (FBR) has never transferred him after his appointment at Customs Preventive. If his recent performance is reviewed, the department following the effective directions of Collector Tariq Huda seized imported goods worth Rs 1510 million during the calendar year, January 2015 to December 10, 2015. According to the details, the ASO teams seized perfumes of assorted brands worth Rs 165.27 million, mobiles phones and tablets worth Rs 12.08 million, clothes worth Rs 16.89 million, five containers worth Rs 112.9 million, air conditions, auto parts, diesel worth Rs 296.8 million, LED TVs worth Rs 46 million, motor oil and other items worth Rs 8.4 million, besides confiscating soap, cigarette lighters, foundation cream, cell phones’ batteries, chargers, tyres, toiletries, black tea, genera-
Collector Tariq Huda
Customs Preventive ASO seizes smuggled goods worth Rs 2.03 billion in over two years tor and gutka worth Rs 852 million during the said period. The ASO during the last calendar year, 2014 held smuggled goods worth Rs 310 million, while from the date, when Tariq Huda took charge and up to December 2013, it confiscated contraband items worth Rs 210 million. Meanwhile, Customs Enforce-
ment-South Chief Collector Zahid Khokhar and Collector Tariq Huda appreciated the performance of anti-smuggling unit of Customs Preventive. Talking to Customs Today, officials said that department was showing remarkable performance under the supervision of Chief Collector Zahid Khokar and Collector Tariq Huda. On the other hand, both
high ups have urged the people to help the department to foil smuggling bids in the regions by informing it about any suspicious activity in this regard. They added that people should confirm prior to purchase imported goods/branded goods about their customs clearance in order to save the national economy.
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04 NATIONAL
DECEMBER 22 - DECEMBER 28, 2015
Govt to authorise SECP to collect details of taxpayers
ISLAMABAD: The federal government has decided to authorise the Security and Exchange Commission of Pakistan (SECP) to collect details of taxpayers. FBR already has this power. The govt has directed all the government, private and semi-government organisations that they must provide details of bank accounts, real assets and properties of taxpayers. Sources said the govt will include clauses in the securities bill under which the procedure for fine recovery by SECP will be included and the said organisation will be authorised for the recovery of fine imposed and implementation of sentences.
Ahmad Reza’s Sialkot ASO seizes mobile accessories worth Rs 1m
Mobile smuggling case: Customs Court sends suspects to jail on remand LAHORE
IMRAN MEHAR
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Sialkot ASO also seizes non-duty paid vehicle during routine search SIALKOT
GULZAR AHMED
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FBR starts audit of taxes paid by big publishers LAHORE
MUHAMMAD NAWAZ www.customstoday.com
he Federal Board of Revenue (FBR) has started the audit of big publishers after finding some discrepancies in tax returns filed by them. According to the details, the FBR will scrutinise the record of last five years to find the total tax paid by publishers in wake of sales and income tax during the said period. The book sellers those published book in foreign countries but sell them in Pakistan would also be included in the audit process. It is pertinent to mention here that publisher is liable to pay 35 percent tax as manufacturer and five percent as importer. The officials said that if any kind of irregularity was found, the tax evaders will be brought to table in order to recover evaded tax.
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Peshawar Customs seizes illegal cigarettes worth 4.7m BR, Inland Revenue (IR) intelligence and investigation Peshawar has impounded a truck loaded with illegal cigarettes worth 4.7 million. According to details, Customs intelligence after receiving secret information has raided on Swabi interchange and intercepted a truck loaded with cigarettes. After inquiring the legal documentary evidence of said cigarettes the accused failed to produce the same. According to detail these cigarettes were loaded for Maan traders Swabi loaded from Ms/ international cigarettes industries (Pvt) ltd. Customs has arrested driver and started further investigation in this regards. —CT Report
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— Exclusive Customs Today photo
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he Anti-Smuggling Organization (ASO) Sialkot has confiscated smuggled mobile accessories worth Rs 1 million. Sources told Customs Today that the ASO has captured small cartons of different mobile phone accessories worth Rs 1 million during an operation supervised by deputy superintendent Erfan and inspector Mansha. The smuggled items were being brought from Quetta to Sialkot. As per details, an ASO team following the directions of Model Customs Collectorate Sialkot Collector Ahmad Reza Khan intercepted a van and found mobile accessories items. The officials asked the driver to produce the documents showing the legal import of the items but the driver remained failed to do so. Therefore, Customs officials seized the accessories under Import and Export Trade (Control) Act 1950, punishable under Section 156(1), 89 of Customs Act, 1969. Separately, the Anti-Smuggling Organization (ASO) Sialkot has seized a non-duty paid Mitsubihsi Pajero worth Rs 600,000 in the market. Sources told Customs Today that the ASO team intercepted the vehicle near GT Road Sialkot. When the ASO team asked the driver to produce legal proof of the ownership, he failed to provide necessary documents. The ASO team impounded the vehicle and registered a case against the suspect. Meanwhile, the Anti-Smuggling
he Special Federal Court of Customs Taxation and Anti-Smuggling has approved a further 14-day judicial remand of three suspects in a mobile smuggling case. Customs Intelligence recovered 330 costly mobile phones from the possession of three alleged smugglers.The suspects were trying to smuggle mobiles phones from Lahore to Peshawar via truck. Now According to details available to CustomsToday, three alleged smugglers Naseer Khan Afghani, Mukhtar Ahmad and Humayun were presented before the Customs Court Judge Ameer Muhammad Khan who approved a 14-day judicial remand for further prosecution and judicial trial of the accused. According to details, accused Naseer Khan is a resident of Afghanistan and Mukhtar and Humayon are residents of Peshawar while it is also revealed during investigations that Naseer Khan is illegally living in Pakistan and without having valid travel documents.
FIA arrests 11 human traffickers SIALKOT
ZAFAR MALIK
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Collector Ahmed Reza
Organization recovered a large quantity of smuggled, non-duty paid foreign rims and tyres. Sources told Customs Today that the Anti-Smuggling Organization received information about smuggling of foreign origin tyres and rims of assorted sizes and brands and disposing of the same in open market by mixing them with tyres and rims of assorted sizes imported through authorized routes. Moreover, stickers of foreign origin
brands, wrapping material are also used for the packing of these smuggled, non duty paid tyres as the smuggled tyres are usually brought in unwrapped condition. The operational strategy was accordingly chalked out to search the premises after completion of legal formalities. During the search process the raiding team found wrapping material, different stickers etc. besides huge quantity of foreign origin tyres and rims.
IA has arrested as many as 11 human traffickers from Gujranwala Division’s Sialkot, Narowal, Gujrat, Mandi Bahaud Din, Hafizabad and Gujrat districts, during ongoing vigorous crackdown against them. Deputy Director FIA Gujranwala region, Ch. Khalid Anees, said that arrested accused had been running their illegal business of sending innocent people abroad, especially to European and Middle East and Gulf States by getting big amounts from them.
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FaisalabadCustomsIntelligenceseizessmuggledgenerator Faisalabad customs seizes smuggled Hino truck worth Rs 3.5m
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FAISALABAD
NAEEM SHEIKH
www.customstoday.com
he Customs Intelligence and investigation has confiscated foreign origin used generator worth Rs 220,000 involving duty/taxes amounting to Rs 139,700. Following credible information, the intelligence team intercepted a mini truck bearing Registration No. FSD-2639 and recovered a generator. The team asked the driver named Usman Ali to show the documents regarding the legal import of the generator but he remained fail to do so. Therefore the customs seized the generator under Section 16 and
18 of the Custom Act 1969 and Section 3(1) and 3 (3) of Import and Exports Control Act, 1950 punishable under Section 156(1)90 and 157 of the Custom Act, 1969. The intelligence team comprising Senior Intelligence Officer Muhammad Tahir Iqbal, Intelligence Officer Faizi Raza and Mr Mansoor Khan and Sepoys Mukhtar Ahmad, Masood Iqbal and Muhammad Iqbal participated in the raid. For the further investigation, report submitted to the adjudication department, Separately, the Faisalabad Customs intelligence and investigation (I and I) has seized smuggled Hino Truck. According to details, Information was conveyed through Azmat Tahira Additional Director Customs Intelligence and In-
Additional Director Azmat Tahira
vestigation Faisalabad. Customs intelligence team has seized a Hino truck bearing registration no. TKB370 (sibi) worth Rs 3.50 million. Customs intelligence staff intercepted truck near Chowk Bypass Jaranwala road Faisalabad. After asking the legal possession of the said vehicle the driver named Khalid Mehmood son of Allah Bukhsh Tehsil and District Sargodha failed to produce the legal documents of the said vehicle. The detecting comprising staff Muhammad Tahir Iqbal (Senior Intelligence officer), Muhammad Saleem, Main Muhammad Yousaf (intelligence officer) Mukhtar Ahmed, Muhammad Sikander Ghulam Ghous, Muhammad Iqbal (sepoys).
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SPECIALREPORT
DECEMBER 22 - DECEMBER 28, 2015
ISLAMABAD
MUHAMMAD ARSHAD www.customstoday.com
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enator Nuzhat Sadiq, an active member of the Senate Standing Committee on Finance, Revenue, Economic Affairs, Statistics and Privatization, has said that payment of taxes is a must to improve the national economy. In an exclusive interview with Customs Today, she said that there is a need to create awareness about tax culture in the country as the government needs money to spend on public welfare projects. Replying a question about recently announced new taxes of Rs 40 billion, she said that the government had decided to impose regulatory duty on luxury items to bridge shortfall in revenue collection. She said that an incentive package has been announced for potential taxpayers to increase tax net Imports of luxury items have gone up over the past few months and Fi-
Senator Nuzhat says there is a need to create awareness about tax culture in the country, as the government needs money to spend on public welfare projects
nance Minister Ishaq Dar is not happy with the trend as the substantial increase in imports of luxury items was a worrisome factor for the government and while government was working on various proposals to curtail them. She said that it was unfortunate that no one willing to pay taxes in full quantity and wished to find out ways and means to evade taxes. Therefore, this national approach towards the payment of taxes needs to change, which is possible only by dint of mass awareness campaign, she said. Appreciating the economic and financial policies of the government, she said that finance minister Ishaq Dar was leaving no stone unturned to lift national economy up and fruits and yields of his hard work had started emerging. Pakistani economic uplift has not only been recognized by the local monetary institutions, but international monetary organizations and rating agencies have also acknowledged it and it is positive signs for national prestige in the world. She said that the government had
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SPECIALREPORT 07
DECEMBER 22 - DECEMBER 28, 2015
increased tax net up to 33% and there was a dire need of tax reforms in the system to make it more effective. Moreover, steps are being taken to make Federal Board of Revenue (FBR) taxfriendly in order to encourage the masses for paying their taxes. This is why inflation rate has come down due to the prudent policies of the government, besides an increase in foreign reserves. Even, Senator added that all local and foreign economic indicators had been pointing out marvellous economic revival in result of economic policies followed by the government. This is why International Monetary Fund (IMF), World Bank (WB), Asian Development Bank (ADB), USAID, AUAID, JICA, DFID and number of other international institutions have extended their full cooperation to the current government. She also observed that results of byelections, first and second phases of local government elections and even results of local government in the federal capital were expression of public confidence in the economic policies which had brought country out of economic crisis. Country’s foreign exchange reserves have also touched a historical highest volume, which have crossed the figures of $ 20 billion. To a question about, tax reforms and facilitations for the taxpayers, Senator Nuzhat Sadiq said that the Federal Board of Revenue (FBR) should focus on make the tax filing system more and more easy so that common people could easily file their income tax returns. Moreover, she said that tax collectors should avoid creating an environment of fear for new taxpayers because people are afraid of coming into tax-net and tend to remain non-filers. Actually, people want to pay taxes if they have confidence in honest expenditure of their tax money. Our government has initiated mega projects like Metro Bus Service, Orange Train as well as overlaying and repair of Motorway (M-2) which had b e e n pending for a number of years, these development works give confidence to public
Senator Nuzhat says there is a need to create awareness about tax culture in the country, as the government needs money to spend on public welfare projects
about accurate and correct use of their tax-money. Moreover, she said that tax rate must also be rational so that everyone may easily pay without feeling any extra burden. In developed countries, people pay taxes just because of the fact they get incentives and facilities in return of their tax-money. She hoped that government would overcome the energy crisis by 2018. Once the government comes up to commitment of eliminating energy crisis from the country, it will be easy for our party to contest general elections 2018 after fulfilling the main agenda of election manifesto for which PML-N had been granted mandate by the people of Pakistan in general elections 2013. She also hailed the government’s steps for reforming the tax system and proposed grant of wider mandate to Tax Reforms Commission to enable it studying and modernizing the design of the tax system, not merely tweaking more revenue within the current year. Similarly, she proposed that granting constitutional protection to tenures of the chairman and members will be an important start as well as instituting a full-fledged organisational development (OD) programme for FBR and undertaking a major overhaul of FBR’s IT systems and software development processes. If done, these steps will represent a true break from the recent past and leave a reform legacy for the PML-N government. Brief Profile: Senator Nuzhat Sadiq belongs to a political family. She belongs to the PML-N (Pakistan Muslim League) party. Presently, she is an active member of Senate Standing Committees on Climate Change, Defence Production, Senate Finance Committee as well as Chairperson Senate Standing Committee on Foreign Affairs. Being active in Senate Standing Committee on Finance and Revenue, she had been successfully defending government against strong criticism from the opposition members. She has also been member of the National Assembly and was a founder of the Women’s Parliamentary Caucus in 2008, serving as treasurer and later general secretary of the group. Over the past decade, she has championed bills ranging from an act to combat domestic violence to a law against harassment in the workplace and another aimed at preventing acid attacks. She also pushed successfully for a law creating the National Commission on the Status of Women, an oversight body with counterparts at the provincial level.
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08 EDITORIAL
DECEMBER 22 - DECEMBER 28, 2015
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
Prospects of regional trade
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hough business and trade moots in Pakistan, which are arranged by the government agencies to spell out economic prospects of the country, often turn into social gatherings and without achieving any goals in real terms. However, experts do hope positive effects of the business moots in the long run. The China-Pakistan Economic Corridor is the best example for the South Asian countries to enhance regional connectivity and boot SAARC trade. But for the purpose, the leaders will have to work overtime to revive the South Asia Free Trade Agreement and evolve standard operating procedures to increase volume of trade within the states in the region which is currently at five percent. The experts at the 8th South Asia Economic Summit, organised by Sustainable Development Policy Institute, hoped that a thaw in relations between Pakistan and India is necessary to enhance regional trade. The future of South Asia lies in the regional trade and development of infrastructure is the basic requirement to achieve this end. The China Pakistan Economic Corridor is $46 billion project with focus not only on infrastructure, but also on power and energy projects. If the countries in the region want to enhance trade, they will have to offload the burden of the bitter past and take a fresh start. At least one third of the world population lives in this region with only 3 percent of the global trade. Half of the population in South Asia lives below the poverty line. Pakistan on its part is enhancing connectivity not only with China, but also with Afghanistan and beyond. The CASA 1000 project with Central Asian States and the economic corridor project with China will change the lot of this nation. But again, the countries in this region are the hostage of the bitter past as the leaders are refusing to learn from the European countries. According to experts, the international trade has fallen from 10 percent to below 2 percent due to global economic crisis and losses can be covered by enhancing regional trade. Despite all odds, the civil society in South Asian region is very strong it needs to persuade their respective governments to soften their stances. On its part, the civil society in Pakistan is very strong and is effectively doing its job. On the government side, Pakistan has signed mega projects like TurkmenistanAfghanistan-Pakistan-India (TAPI) and Central Asia and South Asia (CASA), which will pave the way for regional trade and investment. This is not the era of conflicts but cooperation.
TAPI gas pipeline challenges LAHORE
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DR AFTAB AFZAL
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he dream of regional integration has been transforming into a reality after leaders of Turkmenistan, Afghanistan, Pakistan and India joined hands in Mary city of Turkmenistan to formally launch the historic TAPI gas pipeline project. The project, which will cost $10 billion, will be completed by 2019 and will ensure supply of 1325mmcfd (million cubic feet per day) natural gas to Pakistan to help mitigate energy crisis in the country. Starting from Galkynys gas field of Turkmenistan, the pipeline will pass through Afghanistan into Pakistan and it will culminate at Fazilka town of India near the Pak-Indian border. The project will benefit around 1.5 billion people in this region and the ‘blue fuel’ known in the Turkmen’s local dialect will continue flowing by 33
billion cusec meters per annum. Highlighting the importance of the project, Prime Minister Nawaz Sharif said the flagship project would usher in a new era of shared prosperity and socio-economic development in the region and transform the lives of millions of people in the region. No doubt the presence of the leaders of all the parties involved in the project indicates the importance they attached to the project and their commitment to complete it as early as possible. As a matter of fact, this is the century of economy and regional integration. The people living in South Asia and Central Asia share not only common history and culture, but also business trade and economy. Instead of trading with far lung areas, it is better to develop regional trade for the benefits of the common man. Despite having vast oil and gas reservoirs in Pakistan, the country has been facing severe energy crisis for the last two decades and supply of gas from Turkmenistan will give new
Instead of trading with far lung areas, it is better to develop regional trade for the benefits of the common man
lease of life to the ailing industry in the country. However, insurgency in Afghanistan and parts of central Asian states is the big threat to the pipeline project. Pakistan on its part can do anything for the safety of the pipeline, but one country cannot do everything all alone. Prime minister has correctly pointed out that Pakistan has no control over the Afghan Taliban but it will use whatever influence it has to bring peace and prosperity to this region. Prime Minister Nawaz Sharif, Afghan President Ashraf Ghani, Turkmen President Gurbanguly Berdimohamedow and Indian Vice President Muhammad Hamid Ansari pushed the button of 1,814-kilometer pipeline project, hoping that the work will be completed in four years. Work on another power project CASA1000 was being carried out expeditiously and it gives a message to India and Bangladesh to change their antiPakistan policies for peace and prosperity of this region.
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NATIONAL 09
DECEMBER 22 - DECEMBER 28, 2015
FBR prepares reply of China’s reservations over increased CD
ISLAMABAD: FBR has finalised draft to response the Chinese govt for its reservations over the increase in customs duty on import of Chinese goods. According to the details, China had showed concerns when rate of customs duty was raised on import of goods from China and declared this step anti-free trade between two countries those have close relation at all levels. Sources said that FBR has taken stance that Pakistan has imposed new rate of taxes on a temporary basis to cover the revenue crises, as it required funds to assist the military operation, Zarb-e-Azb.
Lahore Customs impounds Rs 67m illegally imported cigarettes, gutka
Asif Margoob directorate seizes smuggled goods worth Rs 95m
LAHORE
M HAYAT
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AFTAB CHANNA
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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
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irectorate of Intelligence and Investigation (AntiSmuggling Organisation), Karachi, during an operation against smuggling in December 2015, has recovered a huge quantity of smuggled goods worth millions of rupees. Four persons have also been arrested. Sources told Customs Today that during this anti-smuggling campaign in December 2015, at least 1,421 foreign origin smuggled tyres were seized from Bhadurabad and Azizabad which were illegally brought without payment of duty and taxes. In another raid, a team of Customs Intelligence seized 148 smuggled gas cylinders from a godown located in SITE area Karachi for which no customs documents for payment of duty and taxes were provided during questioning. At least 40,000 litres smuggled Iranian diesel and petrol was recovered from the jurisdiction of Saeedabad Police Station at Yousuf Goth Karachi concealed in underground tanks. In addition smuggled vehicles, gutka and black tea was also taken in to custody. Director Customs Intelligence (Anti-Smuggling Organization) Muhammad Asif Marghoob Siddiqui told Customs Today that the value of smuggled item is more
— Exclusive Customs Today photo
ustoms Investigation and Intelligence (I and I) has seized above Rs 67 million illegally imported cigarettes, gutka and shisha flavors. According to details the Customs I&I on the instructions of Director Saud Imran Deputy director Saad Atta Rabani formed a team consisting Superintendents Nasir Minhas, Rauf Farooqi, Rafique Bhatti and other officails of the directorate and raided Abik Road near Anarkali. The official sources said that the customs I&I during the raid recovered 450 carton of cigarettes, gutka and 63 bags of shisha flavors. The sources told Customs Today that illegally imported contraband cigarettes, gutka and flavor were valued at Rs 67 million. The sources said that the Customs I&I has registered FIR against the accused party and started further investigation. The sources said that customs I&I intelligence has increased surveillance on the smuggling activities in the region and conducted several operations on the strict directives of DG customs I and I Imtiaz Ahmad Khan. It was added that the director Saud Imran has also issued directives to the Customs I&I Lahore and Faisalabad to come hard on the smugglers implicating losses to the tune of billions of rupees to the genuine businessmen. It was further added that investigation to the Rs 67 million case is likely to hint more godowns of illegally imported cigarettes and guktka in future.
Intelligence Director Asif Marghoob
ASO also confiscates 994 smuggled tyres worth Rs 20m during raids
than 9.5 crores (95 million). Four persons involved in smuggling were also arrested and FIRs have been lodged in the Customs court as per procedure and law, he added. Challans will be submitted after
investigation and seizure report will be sent to the concerned adjudicating authority as required under the Customs Act, 1969. Director further informed that during the Financial Year 2015-16, smuggled goods worth Rs 1 billion
and 8 crores (Rs 1088.77million) were also seized including smuggled diesel, electronic items, vehicles, tyres, liquor and narcotics etc. Anti-smuggling operation was conducted in line with the strategy of FBR and under instructions of the Director General, Customs Intelligence Imtiaz Ahmed. Additional Director Nadeem Ahsan supervised these operations were materialized by teams of Customs Intelligence including Assistant Director Kaleemullah, Superintendents Najeebullah Jaffery and Mehmood Abbas and other official including Haji Muhammad Aslam, Akmal Hashmi, Munwar Ali and etc. Asif Marghoob Siddiqui said that anti-smuggling operation against the menace of smuggling shall continue with available resources at the disposal. Meanwhile, the Directorate of Customs Intelligence ASO Department raided at different area of Karachi and recovered 994 tyres worth Rs 20 million. According to detail, the Directorate has recovered 994 Tyres worth Rs 20 million from a warehouse situated in Tariq Road and F.B Area Aziza Bad. Director of Customs Intelligence ASO Asif Marghoob Siddiqui and Director General Imtiaz Ahmed has formed a special anti-smuggling team headed by Superintendent Najeeb Jaffrey while Additional Director Nadeem Ahsan is supervising the operations of this team, and this team recovered smuggled tyres which were smuggling from Afghanistan from a long time.
ICCI urges govt to strengthen SMEs sector To,
Ishaq Dar, Finance Minister, Islamabad. Dear Sir,
I would like to draw your kind attention toward the key issue of small and medium enterprises (SMEs) sector that needs proper support from government in wake of financial facilitation and friendly policies. The economic development history shows that the strong economies achieved prosperity by creating conducive environment for progressive growth of SMEs and Pakistan could be no exception to this approach. SME sector is the backbone of the economy, as it is making sig-
nificant contribution to GDP growth, exports and employment, therefore, sound development of this sector is vital to revive the economy. Fast growth of SMEs would yield multiple benefits for the economy, as it would accelerate business activities, create more jobs to overcome unemployment problems, promote exports and generate more tax revenue for the country. The lack of access to easy financing, insufficient institutional support, inadequate network of micro finance banks, non-provision of technical expertise and many other factors are hampering the growth of SMEs that must be redressed to put this sector on the path of progressive growth. SMEs are facing capital deficit issues for expansion and growth
and they needed better cooperation and support from the government to turn small and medium enterprises into a vibrant and flourishing sector of the economy. The government should develop institutional mechanisms to provide technical expertise and support to SMEs and arrange training programs for their capacity building to bring them at par with regional competitors. On the behalf of business community, I request Finance Minister Ishaq Dar to take urgent measures to address the key issues of SMEs and focus on its better development in order to boost the economic growth of the country. Regards,
Atif Ikram Sheikh, President, ICCI.
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DECEMBER 22 - DECEMBER 28, 2015
Faisalabad RTO collects Rs 2,850m in five months
FAISALABAD: The Regional Tax Office collected Rs 2,850 million in wake of taxes against the set target of Rs 2,492 million during first five months (July-November) of current fiscal year 2015-16 and surpassed the target by 11 percent. As per details, the RTO collected Rs 1,680 million under the head of income tax against the set target of Rs 1,700 million. It also collected Rs 1,170 million in wake of sales tax against the assigned target of Rs 750 million during said period. The RTO has not collected any tax under the head of federal excise duty.
— Exclusive Customs Today photos
Governor Dr Ishratul Ebad opens renovated Eduljee Dinshaw Road
KARACHI
AFTAB CHANNA
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he historic and cultural heritage – Eduljee Dinshaw Road – outside the Customs House has been opened for public as the Governor Sindh, Dr Ishratul Ebad Khan, Sunday formally inaugurated the road. Chief Collector Enforcement South Zahid Khokhar, Collector MCC Preventive Syed Tariq Huda, Chairman KPT Vice Admiral (retd) Shafqat Jawed, Collector MCC Exports Dr Saifuddin Junejo, Director Customs Valuation Dr Manzoor Memon, DG Valuation Samaira Nazir, consulate generals of various consulates, businessmen, civil society members attended the event. While speaking on the occasion, Governor Ebad lauded the efforts of Collector Tariq Huda for his untiring efforts and support for the completion of the said project. “We are hoping that the same kind of projects may be initiated in other parts of the city to beautify the city”, the governor added. The renovation of the Eduljee Dinshaw road was kicked off last year at a cost of Rs 65 million. The project aimed at renovating the
Eduljee Dinshaw road was launched with the efforts of Collector MCC-Preventive Syed Muhammad Tariq Huda and it would be completed by the end of year 2015. The road would be closed for traffic and the people would come at evening to spend their leisure time and rejuvenate their memories for old times, as plants, parklanes and other recreational items have been installed at the corners of the road for
entertainment of the visitors, Collector S Tariq Huda. “The monuments like Karachi Port Trust (KPT) Building and Imperial Custom House Building are the tourists’ attraction”, Collector MCC-Preventive S M Tariq Huda added. “The people will now enjoy the old memories of the city and spend their time playing luddo, their kids running around etc”, Tariq Huda added.
FBR removes checking filters from IRIS system
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ISLAMABAD
SHAHID MINHAS
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he Federal Board of Revenue (FBR) has removed all checking filters used for withholding tax from IRIS system, it is learnt. According to details, the FBR has taken this step on temporary basis as withholding tax agents faced problems in submitting tax
statements and dues. Sources told Customs Today that with the removing of checking filters withholding tax agents will be able to submit their statements easily. Sources also added that the FBR is focusing on the faults of the IRIS system and those will be cleared soon. Sources said that FBR also directed the employees posted in banks for the withholding tax to
ensured their presences for the facilitation of taxpayers. It is important to mention here, that Federal Board of Revenue has received 36 thousand of objections from taxpayers about IRIS system. FBR has introduced IRIS (Integrated Risk Information System) software for the taxpayers but it has a lot of faults. Due to which FBR faced billion of revenue shortfall and remain failed
to get the tax returns target. Earlier, the Federal Board of Revenue received another complaint from Karachi Tax Bar Association (KTBA) about problems in Integrated Risk Management System (IRIS). According to the details, the association has informed FBR through a letter that taxpayers were facing while filing income tax returns via online. However, FBR had already received num-
bers of complaints, in this regard. KTBA said that the IRIS system is summing up the different tax liabilities, instead of comparing it. It further said that appropriate accounting period of companies, which have been permitted to adopt special tax year, is not being shown. KTBA suggested that taxpayers should be given the option to define their accounting periods.
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CARTOONSSPECIAL
DECEMBER 22 - DECEMBER 28, 2015
Peshawar Customs seizes two containers of smuggled goods
ISLAMABAD: The Model Customs Collectorate Peshawar has seized smuggled goods that were being brought into Pakistan in guise of dry fruits, and arrested two suspects in the case. Peshawar Customs received information that importer M/s Central Asia Linker would attempt to smuggle large quantity of foreign origin goods into the country. M/s Central Asia Linker imported a consignment from Afghanistan and declared as Afghan origin dry fruits, etc, in 12 trailers but goods two trailers were laden with undeclared stuff.
Hyderabad ASO destroys 3 petrol pumps selling Iranian diesel HYDERABAD
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ustoms Anti-Smuggling Organization (ASO) has destroyed three petrol pumps which were selling smuggled Iranian diesel. Sources told Customs Today that Wasif Memon of Customs Collectorate Hyderabad received information about selling of smuggled Iranian diesel. He constituted an ASO team which destroyed three petrol pumps in Umer Kot area and seized a huge quantity of smuggled Iranian diesel. The ASO team also arrested two suspects who were identified as Khair Zaman, and Shad Ullah. Sources said that the ASO has geared up its efforts to curb selling of Iranian diesel in the area. ASO teams already destroyed twenty one petrol pumps which were involved in the selling of smuggled Iranian diesel till the filling of this report. The ASO authorities also arrested six persons.
Faisalabad RTO surpasses target by Rs 113 million in November
Gold smuggling case: Customs Court to give verdict on December 22
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MUHAMMAD YOUSAF www.customstoday.com
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FAISALABAD
IQRA SHEHZADI
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he Regional Tax Office (RTO) surpassed its set target by Rs 113 million during November
2015, as it collected Rs 11,035 million against the target of Rs 10,922 million. According to the details, the RTO has collected Rs 7,825 million under the head of income tax office against the set target of Rs 7,970 million during the said period.
Moreover, it has collected Rs 3,150 million as sales tax against the assigned target of Rs 2,812 million. Besides, the RTO has collected Rs 60 million in wake of federal excise duty against the assigned target of Rs 140 in November.
he judgment in the long drawn gold smuggling case has been deferred for the sixth time. The Special Court of Customs Taxation and Anti-Smuggling has set December 22 for the pronouncement of the judgment. Judge Syed Faiz Rasool Rashdi deferred the judgment due to absence of a suspect. According to the details of the case, in February 1996 the Anti-Smuggling Organization of Pakistan Customs had thwarted a bid to smuggle gold into the country. The ASO had caught a boat with 12,000 tolas of gold worth estimated at Rs 600 million. Four suspects Hussain, Dawood, Abbas and Muhammad Umer, who were on the boat, were arrested. Subsequently, the custom authorities had registered a case against the accused persons under the relevant sections of Customs Act 1969. They were later released by the court on bail. According to the official sources, 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. Besides, the court had heard arguments four times and reserved the verdict of judgment two times but the decision could not be announced. Thus, the criminal trial reopened again.
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DECEMBER 22 - DECEMBER 28, 2015
Multan Excise seals 230 properties due to tax evasion
MULTAN: The Excise and Taxation Department has sealed 230 more properties in grand operation in city against property tax defaulters. As per details, Excise and Taxation Department is conducting raids against property tax defaulters for recovery of outstanding taxes from the owners. Crackdown was initiated on instruction of Director Excise and Taxation Jaam Siraaj. Both residential and commercial properties were sealed in different parts of the city. Excise department has also recovered Rs 5.6 million from defaulters in two days during crackdown against property tax defaulters.
Pak-UK economic ties growing stronger gradually: British envoy British Deputy High Commissioner John Anthony Tucknott says 100 UK firms have established operations in Pakistan, and many others appointed distributors to promote their products ISLAMABAD
SAJID IMTIAZ
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— Exclusive Customs Today photo
conomic and trade relations between Pakistan and the United Kingdom are growing stronger gradually. Building economic and trade relations are an agreed objective of the bilateral relationship between both countries. Growing the prosperity of Pakistan grows the prosperity of the United Kingdom, and vice versa, said by British Deputy High Commissioner John Anthony Tucknott in an exclusive interview with Customs Today. John Anthony said that there was no Free Trade Agreement (FTA) between the Pakistan and the UK. However, Pakistan is taking benefits from being granted Generalised System of Preferences Plus (GSP+) status by the European Union from since January 1, 2014. GSP+ reduces import tariffs to zero on 6,336 product lines – including lines currently important to Pakistan such as textiles, and higher-value products that will promote sustainable development in the future. He further said that Pakistani exporters should use the services offered by the Trade and Development Authority of Pakistan (TDAP), the Pakistan High Commission in
British Deputy High Commissioner John Anthony Tucknott
London, and come and speak to the UK Trade and Investment (UKTI) Pakistan. UKTI Pakistan has Trade
and Investment Managers in Islamabad, Karachi and Lahore. They are plugged into a global world-class
trade and investment network. UKTI offices are working across England and equivalent organisa-
tions in Northern Ireland, Scotland and Wales. Talking to the security situation prevail in Pakistan he said “Because of the security situation in Pakistan over the past two years, it has been difficult to organise trade delegation visits. But those have happened, and visits by UK companies individually, have found a land of real business opportunities resulting in new business”. A number of Pakistani Chambers of Commerce and Industry have visited the UK and have resulted in a number of new agreements. John Anthony said that in calendar year 2014, bilateral trade in goods and services was £2.535 billion, which showed an increase by 14% as compared to 2013. Over 100 UK companies have established operations in Pakistan, and many hundreds of others have appointed agents and distributors to promote their products. We have seen a steady flow of new companies entering Pakistani business market over the past two years, including new investors. Talking about the business opportunities for business community he said “We look forward to welcoming many more, including in the energy and infrastructure sectors so crucial to the future development of Pakistan. UK companies bring with them technical expertise, innovation and experience of doing business globally”.
Multan Customs seizes oil worth Rs 8m from‘fake oil factory’ Multan Customs also recovers 13 non-customs paid generators worth Rs 23 million on Additional Director Nisar Ahmad’s directives
D MULTAN
SAJID BASHIR/ IMRAN ALI KHAN www.customstoday.com
irectorate of Customs Intelligence and Investigation has confiscated light diesel oil and grease in an operation here. Following the directions of Additional Director Nisar Ahmad, Customs Intelligence teams raided a private warehouse where light diesel oil was being manufactured by mixing with smuggled grease. Additional Director formed special team comprising of superintendent Fareed ud Din Masood , senior intelligence officer Muhammad Umer, Hafiz Muhammad Younas , sepoy Zulfiqar and others for raiding the godown located near tehsil Jahaniya Vehari road. When Customs team raid the warehouse, the light diesel oil was
being manufactured and the Customs team caught the suspects redhanded. It is pertinent to mention here that light diesel oil falls under class C category fuel having flash point above 66OC and it is a blend of distillate components and a small amount of residual components. More than 10 labourers were present at the time of Customs raid in the godown and busy in the processing of light diesel oil. After customs teams took the 350 drums of smuggled grease and 34,000 litres light diesel oil in their custody. Labourers were working at the warehouse were interrogated by Customs teams and they were released after initial investigation. During initial investigation of the Customs warehouse was owner by Tahir Rauf and other. According to Additional Director Nisar Ahmad
Additional Director Nisar Ahmad
they were manufacturing light diesel oil with help of smuggled grease and sale to the petrol fake invoices of the Mehmood Kot. Customs teams have taken the all records into their custody including ledger, receipts and computer in order to calculate their whole sale record. The total worth of the seized light diesel oil and grease is almost Rs 8 million. The customs teams were still busy in lifting seized goods. Meanwhile, the Directorate of Customs Intelligence and Investigation has seized 13 heavy duty generators worth Rs 23 million. Talking to Customs Today, Additional Director of Customs Intelligence and Investigation said that intelligence teams received information that some non-duty paid heavy generators had been concealed in a godown of Liberty Mar-
ket near Vehari Chowk. After receiving the information, Additional Director Nisar Ahmad formed team for action against them which comprised of superintendent Fareeduddin Masood, senior intelligence officer Pervaiz Amjad, inspector Hafiz Muhammad Younas , inpector Malik Nasir and others. The Customs teams raided two gowdowns located on Vehari Road and recovered 13 heavy duty generators from their warehouses. The power of the recovered heavy duty generators were almost 1350 KVA. Local police were also called during the raid due to prevent resistance from the owners at the time of raid. Talking exclusively to Customs Today, Additional Director Nisar Ahmad said that seizure report has been made and investigations are started in this regard.
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