Tuesday, 10 April 2018

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ISLAMABAD

TARIQ DERYA

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he Model Customs Collectorate (MCC) Islamabad demonstrated 54% revenue achievement against an allocated revenue collection target under all the heads during Qirst three quarters of FY17-18. It showed 65% growth against an identical corresponding period of FY16-17. The ASO Islamabad launched a crackdown on tax evaders and notorious elements within its juris-

diction. This was stated

by Muhammad Ishfaque Khan, Additional Collector, MCC Islamabad, while talking exclusively to Customs Today.

He said that, with the collective efforts of ofQicers and staff of the MCC Islamabad, the Customs Collectorate Islamabad displayed an outstanding performance by earning surplus revenue of Rs16420million under all the heads during Qirst nine months of FY17-18 against an assigned target of Rs10656million. So the net proQit received is Rs5764million. He added that the Anti-Smuggling Organization (ASO) is also

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working efQiciently and showed magniQicent performance by impounding smuggled goods, offending vehicles (Vehicles used for carrying smuggled goods) and NonDuty-Paid (NDP) vehicles worth Rs506million which is not a usual performance. Telling about the revenue details under all the heads, he narrated that the collectorate posted 25% increase during Qirst nine months of FY17-18 against an earmarked revenue target under the head of CD while it showed 41% hike against the same previous FY16-17 under the identical head.

Islamabad AFU generates Rs191m surplus CD during nine months

Evaded arrears recovered in response to notice served on M/s Sehrish Gul

Punjab’s tax collection increased 30% in past four years: Dr Ayesha

DG Valuation revises customs values of menthol crystals vide VR No 1277/2018

Customs pays off Rs117.898m rebate refunds to exporters in nine months

AFU Islamabad earned an extra Rs191million of CD during July to March | SEE pAgE 02 |

Adjudication-II received Rs5.89m in response to a final notice served | SEE pAgE 03 |

Dr Ayesha Ghaus Pasha has said that Punjab’s tax collection has increased 30 pc | SEE pAgE 04 |

DGValuationhasrevisedthecustomsvalues of menthol crystals throughVR No: 1277 | SEE pAgE 09 |

MCC Quetta rewarded Rs117.898million rebate refunds | SEE pAgE 16 |

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Customs Tribunal adjourns hearing of cases filed against DG I&I Tuesday, April 10, 2018

Islamabad

ISLAMABAD: Customs Appellate Tribunal’s Member Technical Ziaddin Wazir dated in office the hearing of customs cases filed by Raja Nabeel, Waqas Enterprises, Arshad Khan and Musawir Shah.

Raja Nabeel had filed the case against Directorate of Intelligence and Investigation, Islamabad. Other three appellants had filed their cases against Collectorate of Customs, Islamabad.

Islamabad Afu generates Rs191m surplus cD during nine months

ISLAMABAD

ISLAMABAD

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TARIQ DERYA

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he Islamabad Dry Port (IDP) collected Rs830million of extra Customs Duty (CD) during July to 21st of March FY17-18 against an earmarked revenue collection target for the entire three quarters (July to 31st March) FY17-18.

Deputy Collector Wajid Zaman explained details while giving an exclusive interview to Customs Today.

He said that the IDP earned Rs3296million revenue of CD during July to 21st of March FY17-18 (Eight months and 21 days) against an assigned revenue collection target of Rs2476million as CD for the entire July to 31st of March FY1718. He told CT that the IDP is providing better facilities to the importers and exporters because they are the main source to add tax collection to the national exchequers. He added that the IDP has already received surplus revenue during first three quarters against an allocated revenue target of all duty and taxes. He further added that the administration of the IDP tries to provide utmost fearless atmosphere to the business community so that they can run their businesses with full confidence.

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he Air Freight Unit (AFU) Islamabad earned an extra Rs191million of Customs Duty (CD) during July to March FY17-18 against an assigned revenue target. According to details given by Nisar Ahmad Phulerwal, Additional Collector, Air Freight Unit (AFU) Islamabad that the AFU showed outclass revenue collection performance during first nine months of FY17-18 against an allocated revenue target as CD. The AFU earned Rs2242.48million against an earmarked revenue target of Rs2051.14million under the head of CD during first nine months of FY17-18.

The Additional Collector AFU said that the AFU generated Rs304.08million revenue during the month of March FY17-18 against an assigned target of Rs275million. He told CT that the AFU got Rs29million additional revenue of CD during March FY17-18 against an earmarked target. Telling the monthwise revenue details of CD, the AFU earned Rs295million as CD during the month of February FY17-18 against an allocated target of Rs222.24million. During the month of January FY17-18, the AFU generated Rs216.91million under the same head against an assigned target of Rs275.50million.

‘All customs security staff ordered not to lapse into negligence’

Nisar said that the AFU received Rs366.93million of CD against an earmarked revenue collection target of Rs250.36million during the month of December FY17-18. The Additional Collector added that the AFU collected Rs284.77million as CD against an assigned target of Rs228.61million during the month of November FY17-18.

The Additional Collector told the correspondent that the AFU fetched Rs264.16million under the head of CD against an assigned target of Rs215.88million during the month of October FY17-18 whereas the AFU Islamabad earned Rs154.77million of CD against an allocated target of Rs224.04million during the month of

September FY17-18 as well as the AFU received Rs196.97million as CD against an earmarked revenue collection target of Rs224.15million during August FY17-18. The AFU got Rs156.57million under the head of CD against an assigned target of Rs135.34million during the month of July FY17-18.

Ihc relists number of cases involving Appellate Tribunal

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ISLAMABAD

nAEEm uLLAh TARIQ www.customsbulletin.com

he Islamabad High Court (IHC) relisted a number of customs cases involving Customs Appellate Tribunal and Collectorate of Customs, Islamabad.

A division bench of the IHC comprising Justice Athar Minallah and Justice Miangul Hassan Aurangzeb dated in ofQice the hearing of M/s Nayatel (Private) Limited case Qiled

against Customs Appellate Tribunal.

Other customs cases were relisted which were Qiled by Syed Waqas Ali Shah against Collector Adjudication. Another case from Asmatullah was also relisted. The appellant had Qiled the matter against Collector Customs. Meanwhile, the division bench dated in ofQice hearing of cases including the one Qiled

by M/s Awan CNG Re-Filling Corporation (Private) Limited. The company had Qiled cases against Collectorate of Customs. The bench had

also dated in ofQice hearing of matters Qiled by Directorate General Cus-

toms Intelligence and Investigation against Malik Muhammad Ajmal

Khan. M/s Comfort Sales Corporation had Qiled case against ATIR and customs department. M/s Comfort Sales Corporation had challenged the act of recovery of said amount by commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad.

ATIR was also made respondent in the case as the tribunal had sustained departmental decision regarding issuance of show cause notice and demand of recovery of outstanding tax amount under the head of federal excise duty (FED).

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Regulatory duty on mozzarella fresh cheese challenged in SHC KARACHI: The Ever Fresh Farms (Private) Limited has filed a constitutional petition in the Sindh High Court (SHC), challenging imposition of regularity duty on mozzarella fresh cheese and other items under SRO 1035 (1)/2017 dated 16/10/2017.

Counsel for the petitioner stated that the petitioner imported a consignment, containing 350 cartons of mozzarella fresh cheese block (6X2kg), 600 cartons of shredded mozzarella processed cheese (6x2kg), 600 cartons of mozzarella fresh cheese block veg fat (6×2) and 1,000 cartons of shredded mozzarella cheese veg fat (6×2) and filed Goods Declaration (GD) as per law.

court approves arrest bail of suspect in sales tax evasion case

Tuesday April 10, 2018

Karachi

Evaded arrears recovered in response to notice served on m/s Sehrish gul

KARACHI

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ustoms Court Judge Syed Faiz Rasool Rashdi has granted after arrest bail to Muhammad Altaf Hussain, owner of M/s Tuba International, in a sales tax evasion case of Rs 15 million. During the hearing, the suspect appeared before the court along with his counsel who moved an application for bail and argued that his counsel is innocent and has falsely been implicated in this case. The counsel for the Customs Department opposed the bail application. After hearing the arguments, the court granted the suspect bail against surety bonds of Rs 500,000 and directed him to appear in the court on the next date of hearing.

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Tribunal postpones hearing of cases filed against fBR KARACHI

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he Customs Appellate Tribunal dated in office the hearing of a couple of customs matters involving field offices of the Federal Board of Revenue (FBR) after parties submitted their replies and record of cases. A division bench of the Customs Appellate Tribunal comprising Members Tribunal, Syed Muhammad Anwar and Muhammad Nasir Khan, heard the matters. M/s United Diplomatic Bonded Warehouse and M/s Danial Engineering had filed the references. Counsels from M/s United Diplomatic Bonded Warehouse and M/s Danial Engineering appeared before the bench and demanded timed for preparations of the case.

The bench then directed the counsels to finalized the arguments and relating stuff and then appear before the bench next week.

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KARACHI

wAQAR AhmED AnSARI www.customsbulletin.com

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he Customs Adjudication-II received Rs5.89million in response to a Qinal notice served on a defaulter company named M/s Sehrish Gul Enterprises.

The adjudication has also issued a show cause notice to M/s Digicom Mobile on the charge of mis-declaration/description.

M/s Sehrish Gul Enterprises was allegedly involved in a tax evasion.

The company imported refrigerator parts and A/C compressors in the month of December 2017 which was examined by Taimoor Durrani who used the wrong PCT heading.

After a careful investigation, the Customs Adjudication-II issued a Qinal notice to the company on 5th of March. The company cleared the amount of Rs5.89million. Source said that another company named M/s Digicom Wear got cleared a consignment of mobile parts 2018 and evaded a tax. The consignments were assessed but later the customs served a show cause on the ground that these parts ultimately would be assembled as mobile phones and thus do not fall into the category of “parts”. A contravention report was prepared and show cause was issued to the appellant company.

The company through Franklin Law Associates challenged the show cause notice prosecuted by the Collector Adjudication II who, after

hearing the custom ofQicer concerned and appellant side, ordered the vacation of show cause while asking the importer to pay custom duty and taxes at applicable rates.

Meanwhile, The Customs Adjudication-II issued seven Qinal notices and recovered Rs32.45million in 27 days of March. Sources said that three more cases are in pipeline which will be settled in the end of this March.

The Customs Adjudication-II

The company cleared the amount of Rs5.89million. Source said that another company named m/s Digicom got cleared a consignment of mobile parts 2018 and evaded a tax

nAB identifies irregularities in pmLS

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KARACHI

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he National Accountability Bureau (NAB) has identiQied major irregularities in the Prime Minister Laptop Scheme (PMLS) run under the supervision of Higher Education Commission (HEC).

Reports suggested that a Pakistani computing company violated its contract with the HEC by procuring locally manufactured laptops

against the speciQications agreed in the tender. As per the agreement, the company was required to provide imported laptops for the second phase of the scheme.

The HEC purchased 200,000 laptops at a stated cost of $90 million, however, the private company opted to evade import duties by providing locally manufactured laptops.

Taking note of its Qindings, the anti-graft watchdog is set to launch an inquiry into the case by initiating a reference against those involved.

According to the HEC, the laptops dispensed under phase 2 followed all rules and were in compliance with the tender. HEC Chairman Mukhtar Ahmed said that the scandal is pure propaganda to create a controversy around him to oust him from his post. The enquiry is titled as a ‘non-duty paid 200,000 laptops’ by NAB, with a full-fledged investigation to be launched against the education commission after approval from authorities.

served a final notice on a defaulter company named M/s Hijazi Papers, and retrieved Rs5million from M/s Qadeer Motors. M/s Hijazi Papers was involved in tax evasion. The company imported different types of papers including roller machine paper, computer printer and photocopier paper A4 and A3. The consignment was cleared on December 9, 2017 by using the wrong PCT heading.

Rupee remains firm against greenback he Pakistani rupee on firm against the dollar both in open market and in interbank. As per the local money market, the greenback remained unchanged in open market and interbank for selling at 117.20 and 115.45 respectively the dollar added 50 paisas in open market for buying at Rs116.40 and for selling at Rs117.20.

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FIA arrests four human smugglers Tuesday April 10, 2018

Lahore

LAHORE: FIA Anti Human Trafficking Cell Lahore arrested four human smugglers. According to FIA spokesman, human smuggler Ibrar Hussain of Toba Tek Singh received Rs300,000 for Dubai visa while Khurram Shahzad of Sialkot received Rs600,000 for England visa.

The third accused, Usman Khalid of Nankana Sahib, received Rs400,000 from a man for sending Turkey while Muhammad Akram of Nankana Sahib received Rs140,000 for visa of Saudi Arabia.

fTo hears appeal of m/s Swift paper & chemical Industries against cRTo LAHORE

SAJID nAwAZ

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he Federal Tax Ombudsman (FTO) has heard an appeal Qiled by M/s Swift Paper and Chemical Industries (Private) Limited against Corporate Regional Tax OfQice (CRTO), Lahore until the next date. According to the details, FTO Mian Munawar Ghafoor heard the case in which the counsel for the appellant argued that the Corporate Regional Tax OfQice (CRTO) had failed to resolve the tax refund of the last two years claimed by the company.

He said that the RTO collected excessive tax from M/s Swift Paper and Chemical Industries (Private) Limited during the last two years. He approached the commissioner concerned many times

Bid to smuggle heroin foiled by ASf

he Airport Security Force (ASF) foiled a bid to smuggle heroin to Dubai and arrested one smuggler from Benazir Bhutto International Airport. During routine checking, ASF arrested Usman Maqbool, resident of District Lahore at BBI Airport and recovered heroin tactfully concealed in his chain (Artificial Jewellery) The ASF handed over the accused to Anti-Narcotics Force for further investigations.

While in another attempt ASF arrested a man Nadeem Shah, resident of Haripur, who was proceeding to Manchester by a PIA flight-PK-701 and recovered 3 bullets from his custody. –CB Report

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for issuance of refunds but the CRTO officials did not pay the refunds after the passage of reasonable time.

At the end, the company decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the CRTO to clear the refund claims. The counsel further said that CRTO should refund the excess collection in wake of taxes by the end of financial year but the situation is quite otherwise. After hearing the arguments from both sides, FTO Advisor adjourned the case until next date for further hearing and directed the parties to appear on said date to present arguments in the case.

Meanwhile, Federal Tax Ombudsman (FTO) Advisor Mian Munawar Ghafoor has heard Rs 0.5 million income tax refund appeal and sought the details from the department.

punjab’s tax collection increased 30% in past four years: Dr Ayesha LAHORE

m hAYAT

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rovincial Minister for Finance Dr Ayesha Ghaus Pasha has said that Punjab’s tax collection has increased 30 per cent in the past four years with the broadening of tax base and without enhancing the tax rate.

“Revenue growth in Punjab from our own resources is 10% higher than the revenue growth at the federal level and in other three provinces,” she said while talking to media. “This increase in revenue was achieved despite reducing the tax on 22 services,” she added The minister said the Punjab Revenue Authority inherited only 12 services that were in the tax net, adding the number had now increased to 62 by taking assistance from technology in an effort to bring

numerous tax-evading sectors into the tax net. Dr Ayesha further said that the Punjab government has decided not to impose new tax on agriculture in the upcoming budget.

“Annual agricultural growth in recent years has been poor at only 2% in the province, contributing one-Qifth to the national economy,” said the Qinance minister. She said focus from now onwards would be more on

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boosting agriculture and small and medium enterprises. “Our neighbouring country is giving subsidies to its farmers of a much bigger magnitude than Pakistan while we are talking about taxing the agriculture sector,” she said. “The provincial government has managed to reduce the cost of input for farmers by asking the federal government to slash duties on pesticides and fertilisers.”

Tribunal remands back appeal in chinese gold import up 27.81 pc in 7 months manufactured textile fabrics case he import of gold during Qirst latest data of Pakistan Bureau of Sta-

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he Customs Appellate Tribunal has remanded back an appeal in the imported Chinese manufactured textile fabrics. The same appeal was filed by M/s Mustafa Enterprises against the Collector of Customs (Appraisement) and others. Muhammad Shabbir Gujjar, Member Judicial, heard the appeal and examined the record produced by the parties.

The tribunal has passed the Judgment with remarks that the same appeal is remanded back to the ad-

judication for fresh order after hearing the parties.

The appellant imported a consignment of textile fabrics of China origin from UAE. During the searching of consignment at Pram Nagar Dry Port Lahore, it was observed that the shipment has imported under the wrong GD and violated bylaws. After a complete examination of goods, the adjudication proceedings were culminated and the Order-in-Original was passed against the importer. –CB Report

seven months (July-February) of current Qiscal year increased by 27.81 per cent as compared to same period of previous year.

During the period under review, 326 kilogram of the yellow metal valuing US $13.18 million was imported against import of 278 kg gold worth $10.31 million last year.

However, on yearly and monthly basis, the import of yellow metal in February 2018 plunged by 67.2 per cent and 72.2 per cent when compared to import during February 2017 and January 2018 respectively,

tistics reported. The import during February 2018 declined to $335,000 from $1.021 million in February 2017 and $1.2 million in January 2018. Similarly, the overall metal group import also increased by 27.43 per cent in July-February (2017-18) to $3.45 billion from $2.7 billion in same period of previous year. Iron and steel scrap import also surged by 59.25 per cent as it rose to $1.03 billion in Qirst seven months of current Qiscal year from $650.13 million in July-February (2016-17). –CB Report

chairman nAB orders to investigate illegal commercial plaza in g-6

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LAHORE

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he National Accountability Bureau (NAB) has thrown another salvo at the Capital Development Authority (CDA) as NAB Chairman Javed Iqbal has ordered an inquiry into the matter of conversion of a community plot

into a commercial plaza against the rules, regulations and building by-laws of the civic body. The key accused, Senator Saifullah Bangish passed away in February 2018. Still the press release issued

by NAB names the late senator along with allegedly ‘silent’ CDA officers who played their part in construction of illegal commercial plaza in Sector G-6. In October

2017, Senator Bangish was accused of violating the CDA’s building bylaws for constructing a commercial plaza on a plot meant for a marriage hall in the G-6, adjacent to the Lal Masjid. Senator Bangash was constructing a multistorey plaza on a service road behind the Aabpara Sunday Bazaar.

On closer inspection, the documents of the plot at CDA show that

the mall’s operators had opened a shopping mall in the basement that was originally meant to be a car park. Along with this, authorities at the civic agency say that the building owner was constructing the site without acquiring a no-objection certificate (NoC) on fire prevention and life safety measures as required by the CDA rules and regulations.

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LAHORE

m hAYAT

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he government should have devised rational economic policies at the very beginning of its tenure. Economic policies of the incumbent government have failed miserably and the prime minister has announced the amnesty scheme as the last resort to get through the upcoming elections.

These views were expressed by Lahore Tax Bar Association (LTBA) President Monim Sultan while reacting on the amnesty scheme in an interaction with Customs Today here.

Monim Sultan said that the amnesty scheme at this crucial juncture, when the incumbent government is going to Qinish

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Tuesday, April 10, 2018

it Qive years in the rule, testiQies that the government has failed to strengthen the economy during its tenure and now the stopover and short-term measures are being taken with a view to consolidate its position in the upcoming elections.

He said had the economic policies been made in the larger national interests at the beginning there would be no chaos like situation in the country and the economy would have been made solid during the Qive years. He added that there is no rational in announcing the scheme at this very moment when there is hardly one m o n t h

ahead to announce the federal budget. “The amendment in the rate of tax should have been undertaken by the Qinance bill not by the ordinance and we see no successful execution of the amnesty scheme like the other Qive announced earlier.

There is a dire need to take long term elaborate and systematic strategies to make the economy strong; he said adding that the amnesty scheme is tantamount to oblige a few chosen.

He added that every government should take steps in the larger national interests instead of obliging a few for vested interests. The LTBA president was of the view that nations grow when tax is paid and the tax is used for the benefits of the societies and not for the elites class’s extravagance which is a tradition in Pakistan.

t the id tha a s n a S ult t this monim eme a h c s e y st hen th amne w , e r u l junc t nt is crucia ernme v o g t s in ben e year v inc um fi t i sh to fini le going the ru

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Founder & Chairman Zulfiqar Ali Editor Rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore

EDIToRIAL

financial sector challenges

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he State Bank of Pakistan has unexpectedly left its benchmark interest rate unchanged after it moved the rates up 25 basis points in January this year. It was the first increase in more than four years. The national currency has been devaluated twice during the period and the hypothetical approach of the policymakers is drifting the economy toward precipice. It is yet to be seen how often they will ignore the ground realities and bag feathers of failures after failures in their caps.

The political chaos, religious intolerance, foreign interference and many other malaises are knocking the door of national security.

According to the experts, improvements in exports and expected increase in the flow of remittances into the country would push medium-term economic growth and recent flexible adjustments in exchange rate would not pose any risk to financial stability. Despite the fact most of the regional economies are doing well, the economy of Pakistan suers current account deficit which has risen by 50 percent in eight months and inflation has been subdued at 3.8 percent since October.

But as a result of devaluation, the worth of bank deposits of millions of accountholders has declined and the people, who had invested in the investment schemes, have lost a good chunk of their money in the process. It has made the whole exercise of saving schemes invalid. Some experts do not see any risk of unbridled inflation, but ground realities speak in the clear terms. The low currency value will automatically push the rates of various commodities up. The hypothesis that the low currency value will increase exports and curtail trade deficit will backfire as it will increase import bill. The government is expected to announce federal budget next month in the last leg of its fiveyear term and the general elections are expected in August. However, growing burden of debt, shrinking foreign exchange reserves and deteriorating financial situation could push the government to look toward international financial institutions. It is dilemma of this nation that anti-national elements, criminals and wiz-kids go on the rampage during the days of transition of power from one government to another. The national institutions, including the State Bank of Pakistan, should have to be strengthened to foil their attempts.

perils of corruption and mismanagement T

LAHORE

DR AfTAB AfZAL

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he outgoing government would deQinitely leave behind a legacy of corruption and mismanagement if present state of Qinancial and economic affairs continues to persist. The appointments on vital institutions are made on political grounds, which also leave a fair share of troubles for the next government. Unfortunately, politicians only concentrate on vested interests and have apparently nothing to do with the issues of national importance. The mandate of the current government is going to end in a few months, but Qinancial, economic and po-

litical situation has started worsening day by day. The current government inherited meager foreign exchange reserves when it took over in 2013 and the situation is the same four and half years later. In Minister of State for Finance views, the government would leave the foreign currency reserves, currently not more than $11.8 billion, at a comfortable level for its successor.

The minister has failed to mention the multiplication of the loans from $45 billion to $90 billion in four and half years. His statement could be regarded as a smug glow of self-congratulation and self-complacency but the idea will plunge the nation into Qinancial crisis in the coming year.

The widening current account deQicits are posing severe challenges to the economy and the government would have no option, but to buy dollars from the world Qinancial institutions. The speed with which the government plans to take commercial loans from international Qinancial institutions and friendly countries, no one would be able to stop debt servicing from becoming a snowball. The State Bank reserves could be propped up with borrowed money, but it would pose serious risks to the economy in the days to come. Reports suggest the government has already obtained $1.7 billion from friendly countries as part of the plan to keep the reserves at

comfortable level. The government is seeking more commercial loans with high markup rate, drifting the country toward further chaos. The panacea to economic and Qinancial woes lies in the development of industrial and agriculture sectors. The two sectors have the potentials to push the country into the Qirst world economies. It is easy to take loans but difQicult to pay back along with interests. Due to difference in export and import, the current account deQicit has already reached $10.8 billion, and concentrating on acquiring more loans will add insult to injury.

This government should not leave behind the legacy of corruption and mismanagement.

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NAB arrests accused for fraud MULTAN: The National Accountability Bureau (NAB) arrested MHB Market (Pvt) Director Muhammad Ahsan Taqweem for receiving about Rs100 million from people fraudulently.

According to NAB sources, the accused made a brokerage firm and lured the public at large to invest their money on high profit. After collecting money, the accused fled.

A total of 50 affectees had submitted claims with the NAB Multan worth Rs100 million till date. The accused will be presented before an accountability court.

Sindh’s ST collection jumps 44pc in march KARACHI

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indh’s Sales tax collection has recorded a growth of over 44 per cent at Rs9.29 billion in March compared to Rs6.69bn during the corresponding month of last year. The figure for the first nine months of 2017-18 stood at Rs63.93bn as against Rs53.34bn recorded during same period of 2016-17, reflecting an increase of 19.85pc. The Sindh Revenue Board (SRB) charges the sales tax at a rate of 13pc and is currently collecting sales tax on 89 services with major revenue coming from telecommunication sector, banks, insurance, ports and terminals operators. Besides, a big chunk of revenue comes from withholding agents, construction sector, contractors and consultants. The SRB’s revenue target for FY18 is Rs100bn or 28pc higher than Rs87bn target of last fiscal year. The board has already recorded a growth of 20pc in collection of sales tax on services

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Tuesday April 10, 2018

National

Dg Valuation revises customs values of menthol crystals vide VR no 1277/2018 T

KARACHI

wAQAR AhmED AnSARI www.customsbulletin.com

he Directorate General of Customs Valuation has revised the customs values of menthol crystals through Valuation Ruling No: 1277/2018 under Section 25A of the Customs Act-1969.

Earlier the customs values of the subject menthol crystals were determined vide Valuation Ruling No.650/2014 on March 26, 2014 which was later re-determined vide Order-in-Revision No.234/2016 on August 18, 2016.

There were several representations from importers, wherein they contended that customs values determined in the existing valuation ruling are not reQlective of prices in international markets and need to be re-determined accordingly.

All the stakeholders requested that the values determined vide said Valuation Ruling and Order-inRevision may be reviewed in the light of prevailing international market prices. M/s. A.0. Enterprises stated that they were importing synthetic menthol crystal smoke grade from Singapore and are being assessed_

under the category of, all other origins” goods and customs value determined for all origin is much higher than the value for India and China origin goods. They further stated that smoke grade call DL Menthol Crystal is different from other grades of Men-

thol Crystals, however, they could not disclose the parameters to verify through physical or chemical analysis to distinguish between DL Menthol Crystal smoke grade and other grades of Menthol Crystals. In the meeting the Pakistan Chemicals and

Dyes Merchants Association also showed their inability to provide such parameter to differentiate between afore said grades. M/s Asad Corporation and M/s Multi Link also requested for the downward revision of the said Valuation Ruling.

Steps to resolve exemption certificate issue suggested and hopes to achieve the its revenue target of Rs100bn by adopting a robust recovery drive and providing facilitation and assistance to taxpayers and the business community at large, an official of SRB said. Contrary to this, the Punjab Revenue Authority has a target of Rs120bn for sales tax on services for FY18 and during the month of March, the body managed to collect Rs10bn while the collection for the first nine months of 2017-18 stood at Rs74bn. But when looked at the size of the two revenue collecting bodies of Sindh and Punjab, the PRA has much larger consumption base than SRB and also has much more urbanised centres where much of the services are offered.

KARACHI

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nstitute of Chartered Accountants of Pakistan (ICAP) has proposed solution to resolve problems in obtaining exemption certiQicates at import stage for raw material and capital goods.

The ICAP in its proposals for budget 2018/2019 said that procedures and rules for obtaining exemption certiQicates for import of plant & machinery and raw material by taxpayers has serious restrictions which causes hardship and increases cost of doing business. The issues are listed below: Current income tax rules do not support issuance of exemption certiQicate for import of raw material by manufacturers starting new business, gone into expansion in the cur-

rent product or launched a new product etc. These restrictions are hindering industrial growth in the country. For qualifying for exemption, maximum import of raw material is restricted to the extent of 125 percent of the material previously imported and consumed.

In order to qualify for exemption, the law requires minimum tax (equal to higher of last two years tax liability) to be paid before qualifying for exemption. This means that in the case of lower taxable proQits due to expansion or operational reasons, the taxpayer will inevitably have a tax refundable in the current year. In case of newly established undertakings, tax credit under section 65D is not being allowed by the department while working out tax liability of the las two years.

Coupled with a high rate of withholding at 5.5 percent these restric-

tions badly affect working capital of the manufacturers. Currently, certiQicate of exemption from withholding tax on imports u/s 148 is not allowed to persons who are importing raw material, plant, machinery, equipment and parts for its own use unless they qualify as industrial undertaking. The tax paid at import stage on such imports by persons other than the industrial undertaking is treated as a Qinal tax.

To address the issues faced in respect of claim of exemption under section 148 of the Income Tax Ordinance, 2001 the ICAP recommended following amendments: Restrictions in respect of issuance of exemption certiQicate for new projects / capacity expansions / formula and process changes may be removed which will allow industrial growth in the country.

Maximum volume restriction be at

least enhanced to 150 percent of last year’s raw material imported. Requirement to meet the tax payment equal to previous two tax years be abolished and may be linked with payment of advance tax liability for the respective period (as in the case of exemption under section 153).

Amendments may be made to allow tax credit under section 65D while working out previous year’s tax liability for newly established undertakings already under immense cash-Qlow burden. This would help eliminate piling up of unnecessary refunds for newly established undertakings. The rate of tax on import of raw material and plant & machinery may be gradually reduced to 1 percent. Clause (a) of sub-section (7) of Section 148 should be amended as under: (a) raw material, plant, machinery, equipment, parts or any other goods by any person for its own use.

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Tax refund appeal accepts for hearing Tuesday April 10, 2018

National ‘matters concerning fBR do not fall within bounds of military courts’

LAHORE: The Federal Tax Ombudsman (FTO) has accepted appeal of tax refund for hearing filed by Dr Abdul Hameed against the Regional Tax Office (RTO) Sargodha.

FTO Advisor Mian Munawar Ghafoor heard the case in which the counsel for the appellant argued that RTO had failed to release the refund of the last three years.

He said that the RTO collected excessive tax from the owner of during the last three years. He approached the officer concerned many times for issuance of the refunds but the RTO Sargodha officials did not pay the refunds after the passage of reasonable time.

Bhoja’s Trading moves Shc against enhancement of valuation of cooking port

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hief Justice Saqib Nisar has remarked that non-disclosure of assets does not lead to a court-martial and matters concerning the FBR [Federal Board of Revenue] do not fall within the bounds of military courts.”While hearing a petition filed by the government against Colonel (retd) Munir, the SC bench comprising of Chief Justice Saqib Nisar and Justice Ejazul Ahsan dismissed petition against the respondent. In his remarks, the CJP said that non-disclosure of assets by any military personnel does not lead to a courtmartial. In 1999, Munir was suspended from duty via a court-martial after he did not disclose his entire assets and property before the Federal Board of Revenue (FBR), while the high court later suspended the verdict. The defence ministry then filed a petition against the high court’s verdict in the SC, which was heard earlier today and the apex court dismissed the petition.

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fIA arrests man for harassing girl he FIA Cyber Crimes Wing has arrested three accused persons, one for blackmailing a young girl and two for their alleged involvement in ATM fraud. According to FIA officer Khalid Anees, a raiding team arrested one accused namely Muhammad Imran of Rawalpindi for harassing a young girl through social media. Similarly, he said, during another raid, an FIA team arrested two accused, Junaid and Sohail, for their alleged involvement in ATM fraud. Cases have been registered. deportees: FIA arrested and handed over two deportees to Anti-Human Trafficking Cell (AHTC), Lahore. –CB Report

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he Sindh High Court (SHC) has issued notices to the Customs Department and deputy attorney general on a constitutional petition Qiled by M/s Bhoja’s Trading, challenging enhancement of valuation of cooking port, fry pan, etc from $3.4kg to $5.5kg.

While the hearing of petition, a two- member bench headed by Justice Munib Akhtar also directed them to Qile their respective para wise comments on the next date of hearing. Earlier, counsel for the petitioner stated that it is engaged in the lawful business of import of general merchandise from various sources around the world, including Thailand, Dubai and is aggrieved

by the illegal and mala Qide action of respondents, whereby, they have ar-

bitrary re-assessed the Goods Declaration and are demanding Rs

2.22 million for the consignment already released on February 26, 2018. The counsel argued that petitioner imported a consignment of cooking ware items including cooking port, fray pan etc from Thailand transaction value of US$ 3.40 kilogram which was re-assessed and enhanced at the rate of $ 5.50 kg illegally and unlawfully.

Citing Chairman Federal Board of Revenue, Collector of Customs Collectorate Appraisement West, Deputy Collector of Customs Collectorate Appraisement West as respondents, importer pleaded the court to declare the act of the respondents as illegal, mala fide and arbitrary, he also pleaded the court to restrain them from taking any coercive action against the petitioner till final order in this petition.

peshawar customs posts 37.96percent comparative growth in march T

PESHAWAR

nADIR khAn

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he Model Custom Collectorate Peshawar generated Rs1535million from various taxes against the previous year’s March’s Rs1109million surpassing the previous target with a difference of 37.96 percent.

Under the head of custom duty, the Custom House Peshawar collected Rs635.22million against Rs441.98million of March 2017 with a difference in rupees recorded Rs193.24million while the difference in percentage was noticed 43.11 percent. Under the head of Sale Tax on Import, the Custom House received Rs399.22million in March 2018 against Rs241.86million in March 2017 with a difference of Rs157.96million while the difference in percentage was 65.38 percent. Under the head of Sales Tax on

Federal Excise Duty on palm oil, the collectorate earned Rs139.08million against Rs18.90million of March 2017. The difference in rupees was

recorded minus 41. 81 while the difference in percentage was minus Rs23.13million. Under the head of Sales Tax Value Addition on

commercial importers, the collectorate got Rs62.62million in March 2018 against Rs32.28million in March 2017.

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Customs Court approves arrest bail of suspect in sales tax evasion case KARACHI: Customs Court Judge Syed Faiz Rasool Rashdi has granted after arrest bail to Muhammad Altaf Hussain, owner of M/s Tuba International, in a sales tax evasion case of Rs 15 million. During the hearing, the suspect appeared before the court along with his counsel who moved an application for bail and argued that his counsel is innocent and has falsely been implicated in this case. The counsel for the Customs Department opposed the bail application. After hearing the arguments, the court granted the suspect bail against surety bonds of Rs 500,000 and directed him to appear in the court on the next date of hearing.

fBR to retain services of IREn to check illegal business of cigarettes ISLAMABAD

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ue to a successful operation against illicit and fake cigarettes by the Inland Revenue Enforcement Network (IREN), the FBR decided to continue its working during upcoming budget of 2018-19. The Federal Board of Revenue (FBR) took strict notice of the tax evasion in the tobacco sector therefore the policymakers of the FBR constituted a special enforcement network titled Inland Revenue Enforcement Network (IREN). The said department was especially formed to address the foreign non-dutypaid/counterfeit brands of the local manufactured non-duty-paid cigarettes dumped by the AJK cigarette manufacturers. The sources told CT that

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the main objectives of the IREN is to identify core stakeholders in cigarette/tobacco sector with reference to the tax contribution, evasion of duty and taxes within the tax jurisdiction and revenue generation, developing and implementing strategies to combat the illegal cigarette trade in Pakistan. It was added that the IREN has strengthened the IR as well as Customs Field Squads and regional enforcement hubs and providing them with legal advice so that they can work more effectively. To describe the acknowledgement of IREN, the sources said that the FBR should be appreciated for unprecedented crackdown on the illicit trade in cigarettes. On a successful completion of first year in operation of the IREN in FY2017-18, the IREN seized approximately 1.63billion nonduty-paid cigarette packs and raw material of illicit sector.

National

Shc directs customs to issue delay detention certificate to m/s mandia Exports

‘govt to decrease income tax rates in budget’ ISLAMABAD

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rime Minister’s Adviser on Finance Miftah Ismail has said that the government has decided to decrease income tax rates in upcoming budget for financial year 2018-19. “In this budget, we won’t be introducing mega projects. We will leave the mega and big projects to the next government. We will only finance ongoing projects in the coming budget,” he said during an interview with a media outlet. The government does not want to make it an election year budget. They did it in the last budget by introducing the highest ever development programme, including motorways, highways, power plants, etc. Asked about the current state of the country’s economy, Miftah said fundamental things is the GDP growth. “In this financial year, our GDP will grow at a rate of close to 6 percent, and it will be a 10 years’ record. Fundamentally, economy is growing, private sector is expanding, business is growing, people are having more income. “This year we will add$20 billion to our economy.”“Second major thing is inflation because it is sort of a tax on the poor.

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KARACHI

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he Sindh High Court (SHC) has directed the Customs Department to issue delay detention certiQication to M/s Mandia Exports (Private) Limited.

The petitioner had challenged the imposition of regularity duty on a number of items, including the PVC Flooring imported from China, falling under HS Code 3918.1000.

While hearing a constitutional petition, a two-member bench headed by Justice Munib Akhtar also issued notices to the Customs Department and deputy attorney general, directing them to Qile their respective para wise comments on the next date of hearing. Earlier, counsel for the petitioner stated that he imported PVC Flooring from China and Qiled a Goods Declaration as per law.

The counsel argued that it is being aggrieved and dissatisQied with the unlawful imposition of regularity duty on the goods imported by the petitioner from China.

He further argued that customs department has no power to impose such regularity duty on said items, therefore imposition of regularity

Tuesday April 10, 2018

duty is illegal, mala Qide and arbitrary.

He argued that PVC Flooring falling under HS Code 3918.1000 of the Pakistan Customs Tariff being the Qirst schedule of the act, 1969 and imported by the petitioner. Citing Chairman Federal Board of Revenue, Secretary Revenue Division, Collector of Customs Collectorate of Customs Ap-

praisement West, Collector of Customs Collectorate of Customs Appraisement East as respondents, counsel pleaded the court to declare that act of the respondents is illegal, mala Qide and arbitrary. He further pleaded the court may restrain them from imposition of regularity duty on said items.

customs values of phenolic resin, alkyd resin revised

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ISLAMABAD

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he Directorate General of Customs Valuation has revised the customs values of phenolic resin, polyurethane resin, melamine resin, alkyd resin and epoxide resin vide Valuation Ruling No: 1278/2018 under Section 25A of the Customs Act 1969.

Earlier the Customs values of phenolic resin, polyurethane resin, melamine resin, alkyd resin and epoxide resin were determined vide Valuation Ruling No.1146/2017 on May 3, 2017.

Several representations were re-

ceived from importers wherein they requested to determine the customs value of phenolic resin and epoxide resin on the basis of prevalent trends in the international market. Keeping in view the prevailing prices, the Directorate General initiated an exercise for determination of the Customs values in terms of Section 25-A of the Customs Act, 1969.

Meetings with the stakeholders including importers and representatives from clearance Collectorate were held on 13-02-2018 and 27-02-2018 to discuss current international prices of the subject items. The importers of

phenolic resin requested to include origins like South Africa, Turkey etc. They also contended that values depend on the quality

and end-use cf the resin, however, could not elaborate specifications which could be incorporated in the Ruling.

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World Customs

South Africa increases VAT rate to 15 percent

CAPE TOWN: South Africa increased its value-added tax rate to 15 percent from 14 percent. The South Africa Revenue Service earlier released guidance on the impact of the hike, in a “Pocket Guide on the VAT rate increase on April 2018.”

The guide sets out how to determine the taxable event for transactions. Generally, most transactions occurring on or after April 1, 2018, will be subject to VAT at the new rate unless a special time of supply rule or a rate specific rule applies.

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customs busted suspects who used drones to smuggle iphones

fishermen seeks justice as Thailand comes under scrutiny

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group of 26 suspects were arrested in China for smuggling almost USD $80 million worth of smartphones into Southern China from Hong Kong.

Suspects were able to transport upwards of 15,000 devices in a single night, which were mostly refurbished iPhones, (according to the Chinese Customs’ report) across the border that divides Hong Kong from mainland China.

Drones were used to run 200-meter (660-foot) lines across the border and small bags, which held up to 10 smartphones each, were quickly carried through these lines. The criminals ran their operations after midnight to avoid being caught.

Meanwhile, Customs ofQicers in southern China’s technology hub Shenzhen busted a group of crimi-

Thailand becomes latest country to tax currencies ne of the more interesting examples in this regard is Thailand. The Asian nation has a military regime which has been quite vocal about cryptocurrencies in the past. At one point, it almost seemed as if the use of Bitcoin would become illegal in the country, although things never got to that point. Instead, it appears the regime is suddenly looking at cryptocurrency in a completely different manner. According to Nikkei, Thailand will begin taxing cryptocurrencies in the country. This is a pretty interesting development, even though not everyone will agree with it. Taxing cryptocurrencies is a double-edged sword, as it automatically lends more legitimacy to this nascent form of money.

There is no turning back once such a decision is made. –CB Report

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nals using drones to smuggle 500 million yuan ($79.8 million) worth of smartphones from Hong Kong to Shenzhen, the ofQicial Legal. Authorities arrested 26 suspects who used drones to Qly two 200-meter (660feet) cables between Hong Kong and the mainland to transport refurbished iPhones with a total value of 500 million yuan, the paper said in a report on the crackdown by Shen-

zhen and Hong Kong customs. “It’s the Qirst case found in China that drones were being used in cross-border smuggling crimes,” the Legal Daily reported, citing a news conference held by Shenzhen customs.

Smugglers usually operated after midnight and only needed seconds to transport small bags holding more than 10 iPhones using the drones, the report quoted customs as saying.

Russia’s exfinance minister considers tax hike unnecessary

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hief of the Center for Strategic Research (CSR) and ex-Qinance minister Aleksei Kudrin considers it unnecessary to raise taxes in Russia. “I propose not to raise taxes. Today’s oil price is high enough – around $70 per barrel whereas only $40 per barrel is spent, meaning we continue stockpiling,” he told the “60 Minutes” program on the Rossiya-1 TV channel “Besides, it is possible to redis-

tribute (expenditures – TASS) inside the budget, and invest more in education, healthcare and road (construction),” Kudrin said, adding that it is also possible to expand borrowings. Last week Vedomosti business daily wrote with reference to sources, that the possibility of raising the rate of personal income tax from 13% to 15% was discussed at a meeting with Prime Minister Dmitry Medvedev. –CB Report

hailand for 6,000 baht ($192) two years ago, Win from Myanmar worked as a Qisherman until he lost his forearm in an accident on the vessel this year.

Toiling for 19 hours a day, Win said the crew of 30 sometimes would not get any rest during peak season, with a United Nations team in Thailand this week to investigate such reports of abusive working conditions. “Life is difficult as a fisherman in Myanmar so I thought it would make my life better if I come and work in Thailand,” the father of four, 39, told the Thomson Reuters Foundation.

“The ‘agent’ did not tell me what work I was going to do or how much I would be paid. I just ended up working on the boat.” The world’s third largest seafood exporter, Thailand’s Qishing industry employs more than 300,000 people, many of them migrant workers from neigh-

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boring countries, and the sector has long been dogged by allegations of abuses. The industry is under further international scrutiny this week as a team of United Nations experts undertake their Qirst visit to examine human rights in a wide range of businesses in Thailand, including the Qishing and seafood sectors. Thailand’s multi billion-dollar seafood sector has come under scrutiny in recent years after investigations by the media and human rights groups showed slavery, trafQicking and violence on Qishing boats and at onshore processing facilities.

The military, which took power in a 2014 coup, has rolled out reforms since the European Union threatened in 2015 to ban fish imports from the Southeast Asian nation unless it cleaned up the industry. More than a third of migrant fishermen in Thailand were victims of trafficking, according to a study of 260 fishermen by anti-trafficking group the International Justice Mission last year.

Zim imports soil from South Africa iving his presentation recently at the Bulawayo Investment Conference, CZI Matabeleland chapter chairperson, Joseph Gunda said it was appalling that the country was importing soil, which was readily available locally.

“One area I was looking at is brick-making. When I was walking in and when you look at the front of this building (Mpala Events Conference Centre) there is a yellow brick, but the yellow brick is imported, it is coming from South Africa,” Gunda said. “We are importing soil in instance. Why should we import soil because we

have got plenty of soil here in Bulawayo? We have got McDonald Bricks, we have got another Chinese company out there manufacturing bricks.” Gunda said there were plenty of opportunities for companies in the brick-making industry to venture into this business. There is an opportunity for us because this is market-driven business and there is appetite by our community to like the yellow brick.

So definitely there is an opportunity in manufacturing of this yellow brick,” he said. He said there were also opportunities for import substitution. –CB Report

Vegetable seed production logistic hub launched in penang

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AMSTERDAM

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he Netherland-based Enza Zaden Asia Holding Sdn Bhd has ofQicially opened a headquarters and logistics hub at the Penang Science Park in Batu Kawan here with total investment value of RM50 million.

The investment was accomplished through discussions sealed between the company and the Northern Corridor Implementation Authority (NCIA) back in 2015.

Its chief operating officer Jaap Mazereeuw said that the company, which has been producing high quality vegetable seeds for 80 years, had planned to expand their business due to encouraging de-

mands from the people who need nutritious food products. The growing number of population has challenged the farmers to provide nutritious food products. However, they are faced with soil problems which caused the plants to be susceptible to disease, resulting in huge losses. “Hence, as experts in producing the vegetable seeds, we want to solve the problems faced

by the farmers by conducting research and produce seeds using the latest technology, which is aligned to the modernisation of farming,” he said after the launching ceremony here today. The launching ceremony was graced by special adviser to the Prime Minister, Datuk Seri Zainal Abidin Osman.

Also present was NCIA chief executive officer Datuk Redza Rafiq.

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Saudi Arabia introduces new tax on hotels WASHINGTON: The US trade deficit swelled in January to its largest level in nearly a decade as the world’s biggest economy exported less fuel and sold fewer aircraft, government data showed. The news comes amid White House furor over trade policy, with President Donald Trump’s top economic advisor Gary Cohn announcing his resignation late Tuesday after losing a bruising internal battle over whether to impose punishing tariffs on steel and aluminum. In the first month of the year, the US trade gap rose five percent over an upward-revised December to $56.6 billion, its highest level since October of 2008, overshooting analyst expectations, which anticipated an increase of only two percent.

Semiconductor exports hit record high in 2017 xports of semiconductors produced by Korean firms reached a record high last year on soaring prices and firm demand, customs data showed. The outbound shipment of chips reached $99.71 billion last year, sharply up 60.2 percent from the $62.23 billion tallied a year earlier, according to the data compiled by the Korea Customs Service. The 2017 tally marks the highest-ever for any single item, the data showed. Last year’s sharp growth in exports was led by high-end and high-capacity memory chips. Exports of chips to China jumped 62.4 percent on-year to reach $39.35 billion last year, making the country the No.1 buyer of Korean chips. Vietnam also bought $9.26 billion worth of chips produced by Korean firms, more than doubling the amount from a

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Ports & Shipping

nk smuggling dozens of ships and companies blacklisted by un SEOUL

china steel industry adds voice to steel import concerns hina’s steel industry urged Beijing to ensure any increase in steel products seeking a market in the wake of U.S. tariffs did not affect its domestic industry, following the announcement of a European Union import probe. The comments by the China Iron & Steel Association (CISA) came after the EU initiated a probe into imported steel in response to the U.S. tariffs, worried that steel manufacturers subject to the tariffs may divert their products to Europe. The US tariffs, of 25 percent on steel and 10 percent on aluminum, came into force CISA said the EU investigation would complicate the response to the U.S. tariffs and add uncertainty to the global steel market. “We appealed to the Chinese government to take relevant measures if necessary and strictly prevent the surge of imports from affecting the Chinese market,” it added.

China, the world’s biggest steelmaker, exported 75.43 million tonnes of steel products in 2017. –CB Report

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he UN security council has blacklisted dozens of ships and shipping companies involved in smuggling oil and coal in and out of North Korea.

The security council’s North Korea sanctions committee on Friday acted on a request by the US, took action against 21 shipping companies – including Qive based in China 15 North Korean ships, 12 nonNorth Korean ships and a Taiwanese man. The US ambassador to the UN, Nikki Haley, said the sanctions designations the largest agreed by the council’s committee were aimed at shutting down North Korea’s illegal smuggling activities to obtain oil and sell coal. “The approval of this historic sanctions package is a clear sign that the international community is united in our efforts to keep up maximum pressure on the North Korean regime,” she said in a statement. The list was part of a request

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by Washington late last month for 33 ships, 27 shipping companies and the Taiwanese man to be sanctioned. China delayed that bid on 2 March, but did not give a reason.

The 15-member committee works by consensus.

Meanwhile, Exports of semiconductors produced by Korean firms reached a record high last year on soaring prices and firm demand, customs data showed.

The outbound shipment of chips reached $99.71 billion last year, sharply up 60.2 percent from the $62.23 billion tallied a year earlier, according to the data compiled by the Korea Customs Service. The 2017 tally marks the highest-ever for any single item, the data showed. Last year’s sharp growth in exports was led by high-end and high-capacity memory chips.

kSA oil shipments to america have plunged to 1988 levels RIYADH

year earlier, the data showed. The customs office expects exports of chips to continue rising on the back of firm demand this year.

Meanwhile, South Korea’s ethanol imports rose 14% month on month to 26,255 mt in February, according to Korea Customs Service data released. The imports in February were up by 87.58% year on year from 13,997 mt in February 2017.

The import volume of undenatured ethanol fell 35.52% from January to 7,054 mt in February. Pakistan was the biggest supplier of undenatured ethanol in February, accounting for 2,873 mt, while imports from Cambodia was at 1,623 mt in February. –CB Report

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audi Arabia’s oil shipments to the United States have declined sharply despite closer ties between the two nations under President Trump.

American imports of Saudi crude dropped 14% last year to 943,000 barrels per day, according to US government statistics. That’s the lowest since 1988, President Reagan’s final year in office.

The United States has less appetite for foreign oil in general.

Thanks to the shale boom in places such as Texas and North Dakota, monthly US oil production spiked to a record high late last year. Forecasters believe the United States could eventually overtake Saudi Arabia and Russia as the world’s biggest oil producer.

The United States imported 7.9 million barrels of crude oil a day last year, according to the EIA. That’s down from more than 10 million barrels a day a decade ago, though it’s up a bit from recent years. Interestingly, Iraq has stepped up its oil shipments to the

United States. Iraqi oil imports to the US surpassed Saudi imports in October for the first time since 1985, according to ClipperData.

That trend was even true at the giant Port Arthur refinery in Texas, which is owned by Saudi Arabia’s state oil company. In September,

the Port Arthur facility shipped more oil from Iraq than Saudi Arabia for the first time ever, according to ClipperData.

Meanwhile, China’s crude oil imports from Saudi Arabia in February rose 19.5% month on month to 1.21 million b/d, or 4.64 million mt, making it the second-largest supplier, data released by the General Administration of Customs on Tuesday showed. Its imports of Saudi crude were the lowest in Qive months in January. The steep month-on-month rise in barrels per day is because of February being a shorter month with 28 days. Russia remained China’s top crude supplier in the month with 1.32 million b/d, despite a 1.3% fall in imports from the country month on month.

China’s overall crude oil imports declined 12.1% month on month, but rose 1.5% from a year ago to 8.45 million b/d in February.

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Punjab govt providing 60% subsidy on drip irrigation system Tuesday April 10, 2018

Business

MULTAN: Traders, industrialists and exporters have sharply reacted to the government’s proposal to increase withholding tax rates for non-filers of income tax returns, describing it to be an unwise act.

They said that the present regime should waive this tax immediately to win over the business community. Local traders said that the present regime has no right to approve the next budget for 2018-19, when its term is ending in May 2018.

‘15 % of total budget in punjab on health’ LAHORE

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rovincial Minister for Health Kh. Salman RaQique has said that 15 percent of total budget in Punjab is being spent on health sector and it has been doubled during current Qiscal year.

Patients are moving towards Punjab public hospitals due to the devastated condition of public hospitals in Khyber Pakhtunkhwa (KP), he said and added that Pakistan Terik-iInsaf’s government has failed to establish single hospital having modern healthcare facilities. He said that 30 to 40 percent patients getting admission in Children Hospital Lahore

IRSA releases 72,900 cusecs water KARACHI

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were from KP included patients of cancer, heart and other diseases. Similarly, he said, a large number of patients from KP were getting medical treatment in the public hospitals of Punjab including Victoria and Civil Hospitals of Bahawalpur, Nishtar

152 govt officials concealed dual nationality, fIA tells Sc

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he Indus River System Authority (IRSA) released 72,900 cusecs water from various rim stations with inflow of 84,700 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1,386:65 feet, which was 6:65 feet higher than its dead level of 1,380 feet. Water inflow in the dam was recorded as 21,100 cusecs and outflow as 22,500 cusecs. The water level in the Jhelum River at Mangla Dam was 1,056 feet.

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Hospital, Cardiology Institute and Burn Center in Multan, government hospital of Darya Khan and Cardiology Institutes of Lahore, Faisalabad and Rawalpindi. The Minister further maintained that “Tabdeeli Sarkar” is planning to cut down Rs. 3 billion

from the Health Budget in upcoming Qiscal year. During current Qiscal year, KP government had allocated Rs 12 billion for health sector but this time the government intended to allocate just Rs 9.2 billion, he said and added that it seems that health is not the priority of KP government as no new projects are in government’s consideration except the construction of burn centers and cardiology laboratories in DHQs and THQs in upcoming budget. Contrary to this, imparting the best health facilities is the Qirst and foremost priority of government of Punjab, he said and added that during current Qiscal year Rs 263.22 billion had been allocated for health sectors that is 15.4 percent of total budget rather government of KP had allocated 66.50 billion that is only 11.03 percent of total budget.

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ISLAMABAD

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he Federal Investigation Agency (FIA) on Thursday informed the Supreme Court (SC) that 152 government ofQicials had concealed their dual nationality.

The apex court’s three-judge bench, headed by Chief Justice of Pakistan (CJP) Mian Saqib Nisar, was also informed that 655 ofQicials have disclosed their dual nationality.

The director general of FIA elaborated that the agency had collected

the data of 182,090 ofQicers till March 18. The law-enforcement agency also submitted a supplementary report to the apex court.

The additional attorney general further informed the bench that data for another 1,000 officials has also been obtained and notices were also published in newspapers advising others to reveal their dual nationality. According to DG FIA, they received data of more than 36,000 officers. While 655 government officials confessed to holding dual nationality, 152 kept it hidden.

Furthermore, 665 officers are married to women who possess dual nationality and five to women who are foreign nationals.

Five officials themselves, the top court was informed, are foreign nationals. In March, a reported presented in SC by the FIA stated that as many as 758 government officials held dual nationality. There is presently no restriction in the Civil Servants Act 1973, regarding possession of dual nationality, but there have been efforts by parliamentarians in 2011, 2012 and 2013 to amend the said act.

nAB multan arrests man for Rs320m corruption LAHORE

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ational Accountability Bureau (NAB) Multan arrested one Asif Kamal for Rs320 million corruptions in MEPCO after dismissal of his bail before arrest from high court. According to NAB sources, the Lahore High Court Multan bench dismissed the bail request of the owner and chairman of the Board of Directors (BoD) Trust Investment Bank Limited, who was one of the accused in the NAB reference No 03/18 about Rs320 million. The accused would be presented in the accountability court to get his physical remand. Accused Asif Kamal had deposited Rs200 million in 2011-12, and he had looted the money with the help of former CEO MEPCO Chaudhry Guftar Ahmed, former Director Finance MEPCO Syed Mushtaq Hussain Bukhari and other officers. MEPCO did neither receive any profit nor the real investment back. The investment has now become Rs320 million as per kibor rate. Former CEO MEPCO Chaudhry Guftar Anjum and Syed Mushtaq Hussain Bukhari had already been arrested

by NAB on October 03, 2017 and their bails had been dismissed by the apex court.

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pBA proposes tax reduction for banks to 30% KARACHI

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akistan Banks’ Association (PBA) has forwarded set of proposals for annual budget 2018-2019 concerning banking sector to Federal Board of Revenue.

PBA has proposed that Section III (4) of Income Tax Ordinance 2001 should be deleted and PERA (1992) be amended, by excluding

all persons resident in Pakistan and by disallowing deposit of cash dollars into foreign currency accounts of individuals with banks in Pakistan. This will help curb rampant practice of whitening of money under umbrella of PERA. The body also has recommended that tax rates for all sectors, including banks, be rationalised with uniformity. Accordingly, tax rates for banks should be reduced to 30 percent for tax year 2019, in line with

corporate sector and advance tax payment should also be changed from monthly to quarterly for the banks. PBA recommended that super tax be not extended for tax year 2019 and onwards in 2018-19 annual budget. Currently, advance tax at rate of 0.6 percent (reduced to 0.4 percent through SROs) has been imposed on all non-Qilers, including those in vulnerable groups (like widows, pensioners, students, etc) who are not liable to pay tax where their

income falls below taxable threshold. The tax is also adversely affecting National Financial Inclusion Strategy. The PBA has recommended that tax should be removed or at least exemption should be provided to students, widows, pensioners, retirees etc. Banks are required to pay advance tax installments on monthly basis. The banks incur heavy cost for these advance payments. For utilising a heavy amount as advance tax from banks every month, govern-

ment should also pay KIBOR based compensation. On the income so paid by FBR, banks pay tax 35 percent presently, which will increase government revenue. Through the amendment in Sales Tax Rules 2006, additional sales tax at 5 percent was imposed over and above sales tax of 17 percent on electricity and gas bills on unregistered persons. This additional sales tax should not be charged to a bank’s branch and exemption should be provided.

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Qatar’s economic roadshow begins in Miami TEHRAN: Iran export of crude oil and gas condensate amounted to nearly 1 billion barrels in 2017 in a year that OPEC and other producers stepped up efforts to keep a lid on supplies and drain bloated inventories.

The country shipped around 777 million barrels of crude oil and 180 million barrels of condensate last year, averaging 2.62 million barrels a day, Oil Ministry’s news portal Shana reported on Monday.

That breaks down to 2.1 million bpd of crude and 490,000 bpd of condensate. Condensate is an ultra light grade of oil extracted from South Pars, the world’s largest gas field shared between Iran and Qatar in the Persian Gulf. Iran ships out nearly its entire condensate output. The bulk of shipments (62%) were sent to customers in Asia while Europe accounted for 38% of exports. The largest intake came from China, the world’s top oil buyer and energy consumer, followed by India, South Korea and Japan.

IccI for introducing fixed tax rate for small traders in next budget

Tuesday April 10, 2018

Chambers

govt should adopt trade & industry friendly policies: LccI

ISLAMABAD

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heikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry along with a delegation visited G-10 Markaz and congratulated the newly elected President Kamran Kakakhel and other office bearers of Traders Welfare Association of the area.

Muhammad Naveed Senior Vice President, Nisar Mirza Vice President ICCI, Khalid Chaudhry, Dildar Abbasi, Ashfaq Chatha, Syed Adil Anis, Khalid Mian, Muhammad Faheem Khan and others were in the delegation. Speaking at the occasion, Sheikh Amir Waheed said that next budget was expected on April 27 and called upon the government to focus on introducing fixed tax

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for small traders as well as provide them special incentives in the coming budget. He said that introduction of fixed tax for small traders would help in expanding tax net and enhancing tax revenue of the country. He said that government should simplify the complicated tax system and develop all tax forms in Urdu that would facilitate, especially the small traders. He assured that ICCI would fully cooperate with TWA, G-10 Markaz for resolving key issues of the traders.

Kamran Kakakhel, newly elected President, Traders Welfare Association, Sector G-10 Markaz, Islamabad said that absence of new rent control act was the most serious issue of the local traders due to which businesses were feeling insecure. He stressed that ICCI should play its role and take up this issue with the government for early passage of bill of new rent law for Islamabad.

LAHORE

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resident of the Lahore Chamber of Commerce & Industry Malik Tahir Javaid has said that Lahore Chamber will continue its untiring efforts until and unless major hurdles like withholding tax on bank transactions, difQicult taxation system, misuse of discretionary powers and trafQic are resolved. He said that business community must have representation in parliament and national assembly that would be equally beneQicial for both traders and economy.

He was talking to the delegation of traders, led by Baber Mahmood, here at the Lahore Chamber of Commerce & Industry. The LCCI Senior Vice President Khawaja Khawar Rashid also spoke on the occasion.

Malik Tahir Javaid said that representation of business community in Parliament and National Assembly will ensure formulation of trade & industry friendly policies and help economy Qlourish with quicker pace.

The LCCI president termed the withholding tax on banking transaction a

threat for trade and economic activities and once again demanded its withdrawal in the larger interest of the businessmen. He said that withholding tax on banking transactions is doing more harm than good and continuously affecting the business atmosphere in the country. “Issue of withholding tax is top of the list in the other miseries like disparity in taxation system, dual taxation, high input cost and delay in refunds that must be resolved according to the

demand of the business community.

He said that business community has rejected withholding tax on banking transactions from the first day but concerned authorities are not ready to realize the ground realities. Malik Tahir Javaid said that though expansion of tax net is need of the hour but government would have to find out new ways to bring the untaxed sectors into the tax net. He said that measures like imposition of

pIAf flays zero duty on imports from china LAHORE

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he Pakistan Industrial and Traders Associations Front (PIAF) has opposed the government plan to offer zero duty on almost 6,000 tariff lines in the second phase of Pak-China Free Trade Agreement (FTA), saying it will hit all major industrial sectors in Pakistan.

In a meeting of PIAF Executive Committee, PIAF Chairman Irfan Iqbal Sheikh rejected the revised FTA with China, arguing that Pakistan does not possess exportable surplus so exports cannot get a boost in a big way even if it gets reciprocal incentives from China.

He suggested that Pakistan should made a special request to Beijing to take remedial measures in the wake of eroded exports by

granting concession on products so revised FTA could give a boost to exports, as trade deQicit had increased from $3 billion to $12.65 billion over the last decade. China’s exports to Pakistan have increased from $4 billion in 2006-07 to $14.5 billion in 2016-17. Pakistan’s exports increased from $0.5 billion to $1.47 billion during the same period.

He said it was unfortunate that Pakistan and China had agreed for granting tariff reduction on 75 percent tariff line under the proposed revision in the FTA. Irfan Iqbal said that Pakistan was going to increase the number of items with zero duty from 2,600 tariff lines to 6,000 tariff lines, which would have a much larger negative impact on the country’s industries. “We appreciate the Federal Board of Revenue (FBR) for sternly opposing the revised FTA, as it would negatively affect the country’s industries.”

PIAF patron-in-chief Mian Anjum Nisar was of the view that the government should devise a strategy in the light of impact on domestic industry and China should have been asked to reduce tariff on 75% tariff lines, reduce sensitive list to 10% while retaining and deepening preferences.

withholding tax on bank transactions are not doing any service to the economy as it has been observed that tax collection machinery has no authentic data to specify difference between filers and non-filers. The LCCI president said that tax on all bank transactions has been imposed forcefully, that is not only hampering the trade and economic activities but is also tarnishing the soft image of the government.

kccI to organize my karachi-oasis of harmony from 20th he Karachi Chamber of Commerce & Industry is pleased to present 15th “My Karachi-Oasis of Harmony Exhibition 2018” after the resounding success of previous fourteen exhibitions held each year continuously since 2004. The Karachi Chamber is organizing its fifteenth sequel of “My Karachi – Oasis of Harmony Exhibition” on 20th, 21st & 22nd April 2018 at Karachi Expo Center where this grand event will be staged with a prime objective to promote the positive image of Karachi and provide an interactive platform for business-to-business and business-to-consumer relationship. This year, we plan to make the event ‘bigger and better’, in terms of its participation, and presentation. –CB Report

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Multan RTO suffer shortfall of Rs.700 million in March MULTAN: The Federal Board of Revenue (FBR) Regional Tax Office (RTO) suffers revenue shortfall of Rs.780 million during the month of March.

According to details, Federal Board of Revenue assigned Rs.8.57 billion revenue collection target to Regional Tax Office Multan for the month of March 2017-18.The Regional Tax Office was given Rs.4.50 billion income tax collection task for the month of March. The Federal Board of Revenue has allotted sales tax revenue target of Rs.4 billion and federal excise duty of Rs.700 million to Regional Tax Office Multan.

Tuesday, April 10, 2018

CUSTOMS BULLETIN

Quetta customs pays off Rs117.898m rebate refunds to exporters during nine months QUETTA TARIQ DERYA

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he MCC Quetta rewarded Rs117.898million rebate refunds during Qirst three quarters (July to March) FY17-18 to exporters under the head of Customs Duty (CD).

According to details given by Ashraf Ali, Collector, Model Customs Collectorate (MCC) Quetta, that the collectorate always tried to compensates the exporters by paying them rebate refunds under the same head. He told CT that the MCC Quetta paid off Rs5.365million rebates as CD during the month of March FY17-18. He told the correspondent that MCC Quetta reimbursed Rs7.949million rebates of CD during February FY17-18 whereas the collectorate paid off Rs5.171million under the head of CD during the month of January FY17-18. He said that the MCC Quetta paid rebate refunds of Rs8.474million of CD during December FY17-18 while the MCC Quetta paid Rs6.247million of rebate refunds under the head of CD during the month of November FY17-18. Ashraf Ali told CT that the MCC paid rebate refunds of

Rs29.902million as CD during October while it gave Rs11.894million

rebate refunds during the month of September FY17-18 as well as the

MCC paid Rs0.00 (Zero) million during August and gave Rs42.896million

of rebate refunds during the month of July FY17-18 under the head of CD.

over Rs295m released for Revenue Division projects ISLAMABAD

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he government has so far released Rs 295.239 million for various ongoing and new projects of Revenue Division under the Public Sector Development Programme (PSDP) for the current Qiscal year (2017-18). The government in its Federal PSDP had earmarked Rs790.100 million for the Revenue

Division projects, with foreign exchange component of Rs105 million, ofQicials sources said.

The government released an amount of Rs96.2 million for the establishment of Inland Revenue ofQices in the country, for which an amount of Rs148 million has been earmarked in the federal PSDP for the current Qiscal year.

An amount of Rs100.994 million has been released for development of Integrated Transit Trade Management (ITTMS) under ADB Regional Improving Border Service Project. The total cost of this project has been estimated

at Rs31,626 million which is being developed to modernize facilities at border crossings at Torkham, Chaman and Wagah.

The government has earmarked an amount of Rs255.375 million for the project this year with foreign exchange component of Rs100 million. The government also released Rs30 million for construction of Regional Tax OfQice (RTO) Islamabad out of its total allocations of Rs94 million during the current PSDP. An amount of Rs32.5 million have been released for project for Security Improvement in Karachi Port and Port Qasim for In-

stallation of three Qixed and one Mobile Scanner with JICA assistance. The government has earmarked an amount of Rs55 million for the project with foreign exchange component of Rs5 million in the PSDP2017-18, the data revealed. Meanwhile, the government also released Rs5 million for feasibilities of MCC Gwadar, RTO Islamabad and Sargodha and Directorate of Intelligence and Investigations (IIR Karachi) for which an amount of Rs10 million have been earmarked in the PSDP of the current year. An amount or Rs7.020 million has been released

Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by (Ibne Hassan Offset Printing Press, Shop No. 33 to 36 , Hockey Stadium, Karachi).

for the construction of Regional Tax OfQice at Dera Ismail Khan for which Rs10 million have been earmarked for the Qiscal year 2017-18, according to the data. An amount of Rs18.525 million have been released for purchase of land for establishing Directorate of Transit Trade at Gilgit for CPEC Trade Facilitation. It is pertinent to mention here that in total the government has released over Rs607.44 billion under its Public Sector Development Programme (PSDP) 2017-18 for various ongoing and new schemes against the total allocations of Rs1,001 billion.