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espite step motherly attitude allegedly of the Finance Division towards the Federal Board of Revenue (FBR), the tax collecting organ has tripled its revenue collection over the past decade. The Finance Division has been drastically reducing the funds for the Public Sector Development Programme (PSDP) of the FBR in last decade
and this tendency should have marooned the its performance but the FBR demonstrated the other way round. Sources told Customs Today that during the Riscal year 2007-8 the total allocations for the PSDP of the FBR was Rs 2,526.774 million for 69 development projects while the total revenue collection was Rs 1.008 trillion. In the next Riscal year 2008-09, the revenue collection was taken up to Rs 1.161 trillion while the PSDP allocations were lowered to Rs 2,370.716 million along with reduced number of
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development projects to 30 only. During Riscal year 2009-10, the Finance Division slightly increased the allocations of PSDP to Rs 2,448.308 million for 68 development projects and the FBR increased the Rigure of revenue collection to Rs 1.327 trillion. The sources said that FBR added some two trillion in the last year’s tune of revenue collection taking the Rigure of Rs 1.558 trillion in Riscal year 2010-11 despite the almost 100% cut in the PSDP allocations; Rs 1234 million for 51 development projects.
Islamabad Customs Car Cell takes NDP Honda Vitz into possession on secret info
Customs Export recovers Rs11.22m from defaulter companies
FTO seeks relevant record from RTO-II in tax refund appeal
DG Valuation issues new customs v alues of cooking range, hood/chimney
Multan Customs impounds vehicles & items worth Rs49.31min different actions
MCC Islamabad impounded NDP vehicle worth Rs1.5million | See pAge 02 |
Customs Export has recovered evaded amount of taxes and duties of Rs 11.22 m | See pAge 03 |
FTO sought relevant record from parties in appeal filed by Khan Filling Station | See pAge 04 |
DG Valuation has revised the customs value of cooking range hood/chimney | See pAge 09 |
ASO has took into possession smuggled goods and vehicles valued at Rs49.31m | See pAge 16 |
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Tribunal adjourns hearing of three references filed against DG I&I Tuesday, April 17, 2018
ISLAMABAD: Customs Appellate Tribunal dated in office hearing of three customs references filed against Collectorate of Customs and Directorate General of Intelligence and Investigations, Islamabad. Customs Appellate Tribunal’s single bench comprising Member, Syed Muhammad Anwar heard the cases. The bench adjourned hearing of the cases after hearing brief arguments on the cases by the appellants.
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islamabad customs car cell takes nDp Honda Vitz into possession on secret info
ISLAMABAD
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rime Minister’s Adviser on Finance Miftah Ismail has assigned National Database & Registration Authority (Nadra) task to identify 0.8 million potential nonfilers, while the Federal Board of Revenue would bring wealthy individuals into tax net. “We are going to share details of 0.8 million people with the FBR with solid information and the tax machinery will be tasked to bring them into tax net,” he added. He said that Nadra had done same exercise in the past but it possessed certain lacunas which would now be overcome and the FBR would be given data in such a shape that could help in bringing non-filers into tax net. About jacking up taxable ceiling from Rs0.4 million to Rs1.2 million which was going to exclude around 5,21,000 taxpayers from paying any taxes and also reducing the income tax rates significantly, the adviser to PM replied that the government provided relief of Rs90 to Rs100 billion and this money would go into the pocket of people which would be circulated again and become part of the economic activities thus the government would get its due share in shape of taxes.
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he Car Cell of the Model Customs Collectorate (MCC) Islamabad impounded a NonDuty-Paid (NDP) vehicle worth Rs1.5million from Koh-e-Noor (Rawalpindi) territory on a tip-off received through Collector MCC Islamabad. According to details given by sources of Car Cell that ZulRikar Ali Chaudhry, Collector, Model Customs Collectorate, Islamabad, got secret information that a Honda Vitz car with registration No: LF-221 is coming towards Rawalpindi. The Car Cell set up a picket near Koh-eNoor Rawalpindi and intercepted the above said car, Model 2004. The Car Cell asked the possessor of the vehicle to show the relevant documents which can prove the legal status of the car, but he failed to do so. The Car Cell took into possession the vehicle and shifted it to the State Ware House (SWH) for further investigation. After getting enough information about the impounded vehicle, an FIR was lodged against the possessor of the vehicle and a case was forwarded to Investigation and Prosecution (I&P) Department for further investigation. The customs impounding staff comprised Superintendent Farukh Azeem Sati, Inspector Hafeez, Sepoy Bilal and other supporting staff of the Car Cell of the MCC Islamabad. It
Miftah directs nadra to identify 0.8 million potential non-filers
was told that the Car Cell took into possession 31 Non-Duty-Paid (NDP) vehicles valued at Rs126.84million during July to March FY2017-18. Meanwhile, The MCC Islamabad collected surplus revenue under all the heads except FED during the month of March FY17-18 against an earmarked revenue collection target under all the heads. According to de-
tails explained by Collector MCC Islamabad that Model Customs Collectorate (MCC) Islamabad posted 3% increase against an assigned revenue collection target under all the heads for the month of March FY17-18 as the collectorate showed 11% growth in March FY17-18 against a revenue collection during the same duration of corresponding FY16-17
under all the heads. During the month of March FY17-18, the MCC Islamabad earned Rs1771.779million under all the heads against an earmarked target of Rs1714.66million. He further told CT that the MCC received Rs57.119million extra revenue under all the heads against an assigned revenue target for the month of March FY17-18.
iHc adjourns hearing of customs reference filed by M/s Al catel Lusent
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he Islamabad High Court (IHC) dated in ofRice the hearing of customs reference Riled by M/s Al Catel Lusent Pakistan Limited with directives to ATIR to rehear the matter. A division bench of the IHC comprising of Justice Shaukat Aziz and Justice Mohsin Akhtar heard the case. M/s Al Catel Lusent Pakistan Limited had Riled the case, challeng-
ing an announcement made by the Appellate Tribunal Inland Revenue (ATIR) through which it had sustained a decision announced by the department’s adjudication pertaining to the show cause notice to M/s Al Catel Lusent Pakistan Limited for outstanding tax recovery. Through both the references, M/s Al Catel Lusent Pakistan Limited had named chief commissioner Inland Revenue, LTU, assistant commissioner Inland Revenue Withholding, LTU, commissioner Inland
Revenue (Appeals), LTU, and Federation of Pakistan through the chair-
man of Federal Board of Revenue (FBR) as respondents in the case.
Show-cause notices had been issued for the tax year 2013 in head of income tax under sections of income tax ordinance, 2001. M/s Al Catel Lusent Pakistan Limited had prayed the court to direct LTU not to recover the said amount and abstain from any coercive action in this regard. The petitioner had prayed the court operation of the impugned notices issued by the tax authority may kindly be suspended till the decisions of appeal pending before the LTU.
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SHC directs inspection of imported betel nuts to ascertain their quality KARACHI: The Sindh High Court (SHC) has directed the customs authorities and department concerned to conduct an inspection of the imported betel nuts whether these are of poor quality, infested and unfit for human consumption or not. A two-member bench, headed by Justice Muhammad Iqbal Kalhoro, ordered this on a constitutional petition filed by different importers against seizing of their betel nuts. During the hearing, counsel for the importers submitted that the customs officials declared the seized betel nuts for being unfit for human consumption.
court seeks charge sheet against suspects in alcohol smuggling case
Tuesday April 17, 2018
Karachi
customs export recovers Rs11.22m from defaulter companies
KARACHI
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ustoms Court Judge Syed Faiz Rasool Rashdi took first information report on the court record and directed the investigation officer to complete investigation and submit charge sheet against absconders, who were booked for attempting to smuggle non-duty paid 696 gunny bags containing 9,392 bottles of alcohol and 4,518 cans of beer through wooden launch. During the hearing, the investigation officer of Customs Collectorate of Preventive Anti-Smuggling Organization Headquarters N.M.B Wharf, Karachi, submitted FIR before the court.
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Revenue officers asked to complete recovery target KARACHI
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dditional Deputy Commissioner Tariq Khan Niazi has directed the revenue officers to meet hundred percent recovery targets of agriculture tax and other government dues. Addressing a meeting here on Saturday, he directed the Assistant Commissioners (ACs) of all tehsils and officials of the Land Record Computerization to achieve the target as early as possible. The meeting was told that 85 percent recoveries in different heads had also been completed in the different tehsils of the district. The ADC also directed the officials concerned to expedite the pace of land record computerization and complete remaining areas where land record could not be computerized so far. The meeting also reviewed the wheat purchase process and issued directions to complete home work in this regard.
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he Customs Export has recovered evaded amount of taxes and duties of Rs 11.22 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that, during scrutiny of the import data, it was revealed that M/s Exclusive Curtain and Export availed undue beneRits and concessions by importing printing and sewing machines by misusing the SRO 556 through Examiner Naseer Sharif on October 5, 2017. Sources said that the company was allegedly involved in tax evasion of Rs 3.22 million. After detecting the tax evasion and investigation, the Customs Export issued it with a Rinal notice to deposit the evaded amount. After receiving the Rinal notice, the management of M/s Exclusive Curtain and Export deposited the evaded amount in the ofRicial account of the Customs Export. Another defaulter company, management of the M/s Uroosa Textile also cleared Rs 8 million of taxes and duties. Sources told that M/s Uroosa Textile also availed undue beneRits and concessions and avoided paying taxes according to the customs bylaws. The Customs Export authorities served on it a final notice on March 24, 2018. After receiving the no-
tice, the management of the M/s Uroosa Textile deposited the evaded amount of taxes. Meanwhile, The Customs Export has recovered Rs57.86million during the past 15 days as the method of sending notices to defaulter companies continues. The Customs Export has recovered an evaded amount of taxes and duties of Rs17.81million from defaulter companies which were earlier issued with notices to pay the arrears.
Sources told that the M/s uroosa textile was allegedly involved in tax evasion of Rs 3.22 million. After detecting the tax evasion and investigation, the customs export issued it with a final notice to deposit the evaded amount
tax evasion by Shah gul fabric uncovered
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KARACHI
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irectorate of Customs Post Clearance Audit Director Nadeem Memon has detected the tax and duty evasion of Rs12million by M/s Shah Gul Fabric, it is learnt here. Sources told Customs Today that M/s Shah Gul Fabric located in West Wharf Karachi imported a consignment of various kinds of silk cloth and color matching digital ma-
chines and got them cleared from the PICT Karachi vide GDs on August 11, 2017 by paying customs duty lower at 10 percent after claiming the beneRits of the SRO 566/2007. However the subject items were correctly classiRiable under the PCT 4893.2407 attracting customs duty at 14 percent and income tax at 12 percent thus, by way of mis-declaration of classiRication, the company evaded/short-paid Rs12 million. The goods were cleared through Appraiser Waris A Khan. Sources told CT that the importer vi-
olated the provisions of Section 22 (9-A) of the Customs Act-1969, Section 38 read with Section 45 of the Sales Tax Act-1990 and Section 23 of Income Tax Ordinance 2001 punishable under clauses (214) of Section 69(8) of the Customs Act-1969, Section 16 of the Sales Tax Act-1990 and Section 46 of Income Tax Ordinance2001 and Section 9-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax.
Sources told Customs Today that, during a scrutiny of the import data, it was revealed that M/s Akram Cutters and Marble Accessories availed undue benefits and concessions after importing different consignments of automatic marble machine Ginza by misusing the SRO 561 clearing through Abdul Shakoor on November 6, 2017. Sources further said that the company was allegedly involved in the tax evasion of Rs5.48 million.
Rupee makes recovery in open market he Pakistani rupee on made recovery against the dollar in open market; however, it remained firm in interbank. As per the local money market, the dollar lost 5 paisas in open market for buying at Rs116.65 and for selling at Rs117.45. The dollar remained firm in interbank for buying at Rs115.40 and for selling at Rs115.60.
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NAB files reference against former MD WASA Tuesday April 17, 2018
Lahore
LAHORE: Customs authorities have arrested a Wapda SDO for attempting to smuggle currency at Lahore airport. Akhtar Mehmood was caught with currency beyond legal limits, officials said. As per rules, a passenger can carry only $10,000 during international travel. The detainee told the customs authorities that he was carrying currency within limits. But during search, $1,5000, 2,687 Chinese Yuan, and RS9,530 were recovered from him, it is reported. Customs authorities booked him and shifted him to customs house for further action.
customs Appellate fto seeks relevant record from tribunal reserves verdict Rto-ii in tax refund appeal of four appeals LAHORE
LAHORE
SAJiD nAwAZ
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he Customs Appellate Tribunal’s Division Bench-I heard Rifteen cases on Thursday and adjourned all of them for different dates without those cases whose verdicts were reserved. Customs Tribunal reserve verdicts in four appeals. The Division Bench-II, comprising Muhammad Shabbir Gujjar, Member Judicial and Saud Imran, Member Technical heard all cases including Naveed Cargo versus Customs Lahore, Out Sight Customs Lahore, Malik sons versus Customs Lahore, Rehmat Ullah versus Directorate of Intelligence and Investigation Lahore, J S brothers versus Customs Faisalabad. The same bench heard cases of
Another accused arrested in motorcycles scam case ational Accountability Bureau (NAB) has arrested another accused in M/S MNM Motorcycles scam. According to a press release, the accused identified as Irfan Bashir was involved in cheating and defrauding people by luring them in the wake of providing motorbikes within 45 days after making an investment of Rs 25,000 only. According to NAB, accused Irfan Bashir was working as stockist in Pakpattan area for MNM Motorcycle. The company had opened hundreds of offices in different cities like Multan, Faisalabad, Sheikhupura, Sargodha, Layyah, Sahiwal, Jhang, Thatha, Pakpattan and Chichawatni, etc. and allegedly committed fraud worth billions of rupees. The case was transferred to NAB from Federal Investigation Agency (FIA). NAB will produce the accused in the court of law to obtain his remand. –CB Report
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Syed Irfan Ali versus Customs Lahore, Rana Shoukat Ali versus Directorate of Intelligence and Investigation Lahore, Shaheen Builders versus Directorate of Intelligence and Investigation Multan, Crescent Bahuman versus Customs Sialkot, Muhammad Arshed Butt versus Customs Lahore, Oyster Fabrics Glass versus Customs Lahore, Sharfat Ali versus Directorate of Intelligence and Investigation Gujrat and Imran Khan versus Directorate of Intelligence and Investigation Multan. The tribunal bench also preceded the cases reserved for the same day. In all the cases, counsels for appellants and respondents appeared before the tribunal members and argued in favor of their respective parties. After hearings, all the eleven cases were postponed by next dates of hearing. The tribunal will hear the same cases on the next Rixed dates and verdicts are reserved in four appeal on those the orders will be announced later on.
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ederal Tax Ombudsman (FTO) sought relevant record from parties in appeal Riled by M/s Khan Filling Station against the Regional Tax OfRice (RTO-II) Lahore. During the proceedings of case, the counsel for the appellant argued that the RTO-II had failed to release the sales tax refund to the appellant since last two years. He said the RTO-II collecting excessive taxes from the company during the last two years. The petitioner approached the officials concerned several times for the release of refunds, but the RTO officials failed to clear refunds after the passage of a reasonable time. Finally, the appellant decided to approach the FTO seeking intervention in this case. The counsel
pti to challenge tax amnesty scheme in Supreme court
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he opposition party in the national assembly of Pakistan has decided to challenge the tax amnesty scheme in the Supreme Court of Pakistan. The Tax Amnesty Scheme was recently announced by Prime Minster of Pakistan Shahid Khaqan Abbasi during his press conference in Islamabad. Customs Today learnt from its source that the third largest political party, Pakistan Tehrik-eInsaf (PTI), has decided to undo the Tax Amnesty Scheme announced by
the government of Pakistan for the overseas and local Pakistanis. “PTI rejects the five-point tax amnesty scheme of the PML-N Government”. Source told CT that, to challenge the scheme, the PTI will raise this issue in the National Assembly of Pakistan. Spokesman for Tehrik-e-Insaf Fawad Chaudhary said that the scheme will be used as a cover for doing money laundering and giving a free hand to the ruling party-men who looted the exchequer. –CB Report
appealed the FTO advisor to direct the RTO-II to clear the refund claims. The counsel further said that delay in release of refunds put burden on taxpayers, adding that the RTO-II should make audit of the case and release the extra amount collected by it from the taxpayer. On the other hand, counsel for RTO-II argued that the appellant has not submitted all record to
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the office for claiming refunds. If appellant provides the accurate record, the RTO-II will release refunds after a proper assessment, he added. After hearing the arguments from both sides, advisor for FTO Mian Munawar Ghafoor has orders to the relevant zone of Regional Tax Office-II to produce relevant document in the next date of hearing to conclude the case.
Services sector exports go down 3.79pc he exports of services from the country witnessed decrease of 3.79 percent during the Rirst eight months of the current Riscal year against the same period of last year. According to the data of Pakistan Bureau of Statistics (PBS), the exports of services sector were recorded at $3.439 billion during July-February (2017-18) against the exports of $3.574 billion during July-February (2016-17), showing decline of 3.79 percent. The imports into the country during the period under review increased by 10.03 percent, by going up from $6.334 billion last year to $4.970
billion during the current Riscal year. Based on the Rigures, the services trade deRicit during the Rirst eight months of the current Riscal year increased by 27.94 percent by going up from deRicit of $2.759 billion last year to $3.530 billion during the current year, the data revealed. Meanwhile, the exports of services on year-onyear basis witnessed decline of 43.07 percent during February 2017 compared to the same month of the last year. The exports of services during February 2018 were recorded at $0.407 billion against the exports of $0.715 billion last year. –CB Report
Domestic tractors assembling grew by 44.69% in eight months
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LAHORE
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ractor manufacturing in the country during eight months of current Rinancial year grew by 44.69 percent as compared to the production of corresponding period of last year. During the period from July-February, 2017-18, about
45,576 tractors were assembled in the country as compared the 31,502 tractors of the same period of last year, according the Provisional Quantum Index Numbers of Large Scale Manufacturing Industries released by Pakistan Bureau of Statistics. During the period under review, the over-all output of LSMI increased by 6.24 percent as compared the corresponding period of
last year, it added. Meanwhile, on month on month basis, the tractor production also grew by 16.55 percent as about 6,543 tractors were manufactured in month of February, 2018 as compared the 5,519 tractors of same month of last year, it added. In last eight months local production of trucks was recorded at 6,081as compared the 4,888 trucks of same period last year,
which was up by 24.41 percent. Trucks production increased by 39.82 percent in month of February and it was recorded at 703 trucks as compared the production of trucks 502 trucks of same month of last year. In last eight months 154,732 jeeps and cars were locally assembled as compared the assembling of 125,502 jeeps and cars in the same period of last year.
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he Model Customs Collectorate (MCC) Islamabad achieved 110% revenue growth under all the heads of duties and taxes during July to 14th of April FY17-18 which is ahead of allocated annual (July to June) FY17-18 revenue collection target. ZulRikar Ali Chaudhry, Collector MCC Islamabad, told Customs Today that Islamabad Customs showed exceptional performance during the initial nine and a half months under all the heads against an assigned revenue collection target of the same heads. Talking about the annual revenue performance, he explained that the MCC achieved 84% as CD, 150% of Sales Tax (ST), 96% as Income Tax (IT) and 109% of Federal Excise Duty (FED) up to 14th of April FY17-18 against an earmarked annual revenue collection target under the said heads. The Collector MCC Islamabad told the correspondent that the collectorate received Rs17045.44million of revenue under all the heads from July to 14th of April FY17-18 against an assigned proportional target of Rs11938.58million while it has been allocated Rs15559.23million annual revenue target under all the heads. He said that the MCC has been assigned
Tuesday, April 17, 2018
Rs6845.85million under the head of CD for FY17-18 whereas a proportional assigned target under the same head by 14th of April FY17-18 was Rs5086.75million while the collectorate generated Rs5757.81million against an earmarked proportional revenue target upto 14th of April. He added that the collectorate obtained 113.19% growth under the head of CD against an assigned proportional revenue collection target. ZulRikar
Ali further explained that the MCC Islamabad has been allocated Rs5276.84million annual revenue collection target under the head of ST whereas it was earmarked a proportional target under the same head by 14th of April amounting to Rs4094.61million while it earned Rs7911.83million against an assigned proportional revenue collection upto 14th of April FY17-18. In this way, he added that the MCC achieved 193.23% increase during July to 14th of April FY17-18 against an earmarked proportional revenue target under the head of ST. He told CT that the MCC Islamabad was assigned Rs2923.90million annual target of IT whereas Rs2317.77million was assigned as proportional target by 14th of April while it received Rs2811.45million under the same head against an allof %o cated proportional target. D, 150 c s a 4% ax 8 t The MCC collected d e e m v nco chie 121.30% hike against an % as i Mcc a 6 e 9 s , i ) c (St l ex x a r a earmarked proportional t e d s f fe S ale target. The MCC generil fY17 09% o r 1 p d A n f (it ) a 4th o ated 142.78% revenue l 1 a o u t n p ked an collection under the feD) u r ( a y t m r u D ea head of FED against an under inst an t a rg e t n o 18 aga i assigned proportional t c e l l o ue c ds revenue target till April reven id hea 14, FY17-18. the sa
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new policy for tax audit selection
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ccording to the media reports, the Federal Board of Revenue has approved a new audit policy to make the selection of taxpayers more parametric, transparent and in conformity with the law. Earlier, the Lahore High Court had stopped the federal government from enforcing the audit policy allegedly because of the lack of transparency in the selection process of the taxpayers. The court ruling came after a petitioner challenged unbridled and unrestricted powers enjoyed by the tax authorities under the audit policy, allegedly creating a milieu of witch-hunting and harassment among the genuine taxpayers. The LHC had then ruled that no audit policy could be enforced until the FBR frames risk parameters on the basis of which the taxpayers are selected for audit. The FBR authorities now claim the new audit policy will be compatible with the prevailing laws in line with the directions of the court. Except the case of income tax, the risk parameters for selection of audit cases of sales tax and federal excise duty have been revealed in the policy. The Income Tax Ordinance bars the authorities from disclosing the risk parameters. Under the new policy, the cases once selected for audit through ballot, will not be selected for another audit for the next two tax years under section 214C, section 72B of the Sales Tax Act 1990 and 42B of the Federal Excise Act 2005. In the next computer balloting, which is going to be held in a day or two, at least 7.5 percent cases will be selected for audit out of the total filers after exclusions. It means all previous cases, which were selected for audit, will be excluded from the balloting. At least 925,000 audit cases are pending before the authorities for a decision. At least 10 percent reduction in value addition in manufacturing and more than 30 percent sales or purchases to or from non-taxpayers will qualify a taxpayer to select him for the audit. When a system incorporates new changes in it, one must keep the exercise as simple as possible. But it is generally observed that change in the system brings more troubles for the taxpayers than facilitation. Devising the criteria with labyrinths of this way or that way makes the changes a futile exercise.
Latest growth figures T
LAHORE
DR AftAB AfZAL
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he government of Pakistan Muslim League-Nawaz has announced provisional Rigures of the economic growth, claiming that it will achieve a growth rate of 5.8 percent in the gross domestic product against the set target of 6 percent during the Riscal year 201718 ending June 30. With this, the size of Pakistan’s economy will swell to $312.7 billion by the end of Riscal year 2017-18, but the per capita income in dollar terms will reach only $1,638.2 per person with marginal increase of 0.6 percent. Though unemployment remained high and industrial sector’s growth also fell short of the target it would be the
highest growth rate in over a decade as all sectors of the economy have shown a better performance during the government’s Rinal year in the ofRice. However, the per capita income in rupee terms has recorded a growth of 11 percent. Though the government could not achieve the economic growth rate of 6 percent, the achievement of 5.8 percent growth is still appreciable against low projections by the international Rinancial institutions. The country has been facing political chaos, mismanagement and terrorism, but a 5.8 percent growth rate shows the economy of Pakistan is still resilient and international affairs have little impact on its chemistry. Experts are giving the credit of healthy growth in services sector and recovery in
the agriculture sector to the positive indicators spelled out under the China Pakistan Economic Corridor. Despite achieving a suitable growth rate, the government missed all major macroeconomic targets. As the population of the country is growing at a fast pace, water resources are dwindling and the country has shown very bleak performance in the domain of international affairs, the growth rate of 5.8 percent is insufRicient to absorb the bulge of youth in the job market. Experts fear the rate of growth below 7 percent will increase unemployment and the next government will have to stimulate industrial sector to create jobs and produce export surplus. A tiny country like Vietnam exported $31
billion worth of mobile phones which is the highest number after China and Bangladesh exported over $22 billion worth of garments, which is again the highest Rigure after China. Why Pakistan has failed to exploit even its cottage or indigenous industry is million dollar question. Instead, Pakistan is facing trade and the current account deRicit of billions of rupees and its foreign exchange reserves are less than any African economy. The government ofRicials are minting millions of rupees annually by drawing hefty salaries and perks, but giving the nation the gifts of loans. If this is the way of managing economy, the government should be handed over to a corporate organization on contract basis.
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2,401 Pakistanis who invested $4b in Dubai may whiten wealth ISLAMABAD: Over 2,401 Pakistanis, who recently invested $4 billion in Dubai, may get whitened their undeclared assets abroad under the new amnesty scheme. Officials associated with the Federal Board of Revenue (FBR) and State Bank of Pakistan (SBP) confirmed that 95% investors have not declared their Dubai assets. According to a confidential document available with the correspondent, around 2,401 plus superrich Pakistanis had bought luxury residential villas/ flats/ estates in around a dozen renowned localities of Dubai in the past nine years. Some 967 residential/ commercial properties were bought in luxury areas of Greens, 75 precious flats in Emirates Hills, 165 properties in Discovery Garden (residential and commercial), 167 flats in Jumeirah Island, 123 residential properties in Jumeirah Park, 245-plush flats in Jumeirah Village, 10 properties in Palm Deira, 160 in Palm Jabel Ali, 25 properties in Palm Juemirah.
Smuggling of mobile & accessories from Quetta into karachi frustrated
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KARACHI
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irectorate Customs Intelligence and Investigation Quetta has thwarted a bid to smuggle non-custom-paid mobile phones, batteries, chargers and other accessories priced at Rs5.28million during a special checking. Morning, sources told Customs Today that Director Customs Intelligence and Investigation Quetta Muhammad Akram Chaudhary received a tip-off that some smugglers are trying to smuggle said items from Quetta into Karachi. He constituted a raiding team under the supervision of Inspector Kazim Rizvi (Preventive Department) and others. The team enhanced the surveillance on Quetta Highway Road and started searching of vehicles. During a search operation, the team intercepted a passenger bus bearing regis-
Tuesday April 17, 2018
National
Dg Valuation issues new customs values of cooking range, hood/chimney T
KARACHI
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he Directorate General of Customs Valuation has revised the customs value of cooking range hood/chimney vide Valuation Ruling No 1280/2018 under Section 25-A of the Customs Act, 1969. The Customs values of cooking range hood/chimney were determined vide valuation ruling No.1170/2017 dated 25.05.2017. The Honorable Director General, while deciding Revision petitions, upheld the Ruling but at the same time, advised to address the grievance of certain importers regarding their categories on the one hand and also observed that clearance data had indicated that certain European brands are being cleared even lower than Chinese origin item. Further, a number of representations were received to determine the customs value of Cooking Range Hood/Chimney afresh keeping in view the international market prices. Keeping the above in view an exercise was conducted to determine the customs values of Cooking Range Hood/Chimney under Section 25A
of the Customs Act, 1969. Meeting was attended number of importers and stakeholders and representatives from trade bodies and Rield formations. All stakeholders were requested to submit invoices of imports during last three months showing factual value. Websites, names and E-mail addresses of known ‘foreign manufac-
turers of the item in question through which the actual current value can be ascertained. Copies of Contracts made / LCs opened during .the last three months showing the value of item in question. Copies of Sales Tax Invoices issued during last four months showing the values of supplies (excluding duty and taxes) to substantiate their contentions. Dur-
ing the course of, meeting, the importers of Fotile and Robam mentioned that values determined in the valuation ruling are very high and not compatible with international trading prices. They further argued that while conducting the local market survey it may be kept in mind that their prices include after sales maintenance/ repair service charges and warranty.
exports increased 13.14 percent in 3 quarters ISLAMABAD
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tration No: QC-2830 which was going from Quetta to Karachi. During the checking, the customs team recovered 150 sets of non-duty-paid smart fones, 4000 batteries of smart fones, 8000 mobile chargers and so many different accessories worth Rs5.28million. The customs team impounded all the mobile phones and accessories and arrested two smugglers. During the investigation, smugglers said that they purchased said items from Quetta Bara market in order to sell them in Karachi.
he exports from the country increased by 13.14 percent during the Rirst three quarters of the current Riscal year against the exports of corresponding period of last year. The exports from the country during July-March (2017-18) were recorded at $17.080 billion compared to the exports of $15.097 billion during July-March (2016-17), showing growth of 13.14 percent, according to the latest data of Pakistan Bureau of Statistics. Meanwhile, the imports into the country during the period under review increased by 15.66 percent by going up from $38.369 billion last year to $44.379 billion during the current Riscal year. Based on the Rigures, the trade
deRicit during the Rirst three quarters of Riscal year 2017-18 increased by 17.30 percent by growing from the deRicit of $23.272 billion last year to $27.299
billion during the current year, the PBS data revealed. Meanwhile, on year-onyear basis, the exports from the country increased by 24.36 percent during
the month of March 2018 against the exports of March 2017. The exports during March 2018 were recorded at $2.231 billion against the exports of $1.794 billion in March 2017, according to the data. The imports on yearon-year basis also increased from $4.977 billion in March 2017 to $5.280 in March 2018, showing growth of 6.09 percent. Based on the Rigures, the trade deRicit on year-on-year basis declined by 4.21 percent by going down from the deRicit of $3.183 billion in March 2017 to the deRicit of $3.049 billion in March 2018. On month-on-month basis, the exports from the country increased by 17.30 percent in March 2018 when compared to the exports of $1.902 billion in February 2018. The imports into the country also increased by 10.07 percent in March 2018 when compared to the imports of $4.797 billion in February 2018, according to the PBS data.
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Locally assembled auto sales rise 9% to over 22,000 units Tuesday April 17, 2018
National ‘new tourism policy being devised for promotional strategies’
KARACHI: Sales of locally assembled automobiles, including jeeps and light commercial vehicles, increased to 22,380 units in March 2018, up 9% compared with 20,505 units in the same month of the previous year, showed data released by the Pakistan Automotive Manufacturers Association (Pama). A nominal decline of 1% was recorded in March 2018 when compared with February despite normal working days in the month, indicating a slowdown in demand growth as first quarter of the calendar year was generally a robust period for auto sales, said research house Topline Securities in its comments.
M/s omega industries moves SHc seeking restoration of St registration
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KARACHI
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anaging Director (MD) Pakistan Tourism Development Corporation (PTDC), Chaudhry Abdul Ghafoor here on Thursday said the department is working to introduce a new National Tourism Policy to build tourism infrastructure and devise focused promotional strategies for uplifting the country’s image. Abdul Ghafoor told APP that the new tourism policy would have various aspects, including promotion, awareness, branding and marketing. The policy is aimed at helping restructure government departments that regulate tourism, uplift existing infrastructure and encourage the private sector to come up with innovative ideas to promote tourism in the country. He said in this regard a feedback was taken from all the tourism industry stakeholders to get input on the proposed National Tourism Policy.
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fto remands back tax refund appeal for order he Federal Tax Ombudsman (FTO) remanded back a tax refund appeal filed by Proprietor Amir Sohail Traders against the Regional Tax Office (RTO-II) Lahore. During the proceedings of the case, the counsel for the appellant argued that the RTO-II had failed to release the sales tax refund to the appellant since two years. He said that the RTO-II had been collecting excessive taxes from the company during the past two years. The petitioner approached the officials concerned several times for the release of refunds, but the RTO officials failed to clear refunds after the fall of a reasonable time. –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 Riled by M/s Omega Industries (Private) Limited, seeking restoration of its sales tax registration suspended by the customs authorities. While the hearing of the petition, a two-member bench, headed by justice Munib Akhtar, also directing them to Rile their respective para wise comments on the next date of hearing. Earlier, counsel for the petitioner stated that petitioner is served with a show cause notice on March 6, 2018 of the Sales Tax Act, 1990 read with rule 12 (a) (1) (g) of sales tax act, rule 2006 on the back
ground that petitioner at the time of processing of their case at Direc-
torate General of Intelligence and Investigation-IR, Karachi, had
agreed to pay recoverable amount and subsequently made payment of Rs 10 Million along with 5 postdated cheques for Rs 5 million. The counsel argued that respondents took action against the petitioner and suspended sales tax registration without fulRilling the legal requirement, therefore, action of the respondents is illegal and no legal effect. Citing Chairman Federal Board of Revenue, the Commissioner Inland Revenue Zone-III large Tax Payers as respondents, he pleaded the court to declare that act of the respondents as illegal, mala Ride and arbitrary. He also pleaded the court may direct them to restore its sales tax registration and restrain them from taking any coercive action against the petitioner till final order in this petition.
islamabad Dry port suffers big deficit due to imposition of Regulatory Duty on imports T
ISLAMABAD
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he Islamabad Dry Port (IDP) has faced a huge shortfall during Rirst two weeks of April FY17-18 under the head of Customs Duty (CD) due to imposition of Regulatory Duty (RD) on all the imported consignments. According to details explained by an ofRicial source of the Islamabad Dry Port (IDP) that the IDP was assigned Rs135.29million of CD for Rirst two weeks of April FY17-18 against a collection of Rs56.04million whereas the IDP received Rs122.38million under the same head during the same previous duration. The IDP has been assigned Rs339.29million as CD for the current month of April FY17-18. The IDP showed -59% decrease during Rirst two weeks against an allocated proportional revenue target while
it showed -54% decline against the identical corresponding FY16-17. The sources told CT that, due to imposition of RD on imports of nonluxury and perishable goods, the
IDP business activity got chocked. Sources added that the duty taxes which were paid worth Rs0.6million (06 laks) per container of 40 feet before the imposition of Regu-
latory Duty (RD) now reached Rs0.11million (11 laks). It becomes difRicult for importers to continue business with the imposition of RD on almost all the imported goods.
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NAB hands over cheques of Rs45.323m to departments LAHORE: The National Accountability Bureau (NAB) Director General Shahzad Saleem has handed over cheques worth Rs 45.323 million to different departments. According to a press release, the amount was recovered through plea bargain after the NAB, Lahore, completed investigations into numerous corruption cases, including investigations against the management of Gujranwala Irrigation Employees Cooperative Housing Society, officials of Public Works Department (PWD), Lahore and officials of Citizen Community Board, Sheikhupura and defaulters of banks.
pak-Qatar family takaful, DiB achieve Rs 3 billion mark in Bt business KARACHI
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ak-Qatar Family Takaful has achieved yet another milestone by generating over Rs 3 billion Banca Takaful business with its first partner Dubai Islamic Bank.The 9-year old business portfolio, commencing in October 2009, has crossed Rs 3.05 billion with 9,000 customers across the country availing various Banca Takaful products via Dubai Islamic Bank. Pak-Qatar Family Takaful, Dubai Islamic Bank Pakistan and FWU AG Pakistan recently celebrated over Rs 3 billion milestone Banca Takaful relationship as business partners offering Takaful products nationwide. A special ceremony was held by Pak-Qatar Family Takaful, Dubai Islamic Bank Pakistan and FWU AG Pakistan to mark this
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milestone at DIB’s Banca Takaful Family Gala-2018. Chief Executive Officer of Dubai Islamic Bank Pakistan, Junaid Ahmed, CEO of Pak-Qatar Family Takaful, Nasir Ali Syed and Country Head FWU AG Pakistan Branch, M. Azam Khan were present on the occasion along with senior management teams of respective organizations. Pak-Qatar Family Takaful offers a wide range of sharia compliant protection and saving products to its clients. Pak-Qatar Takaful Group (PQTG) – the first and largest dedicated Takaful enterprise in Pakistan’s Islamic Finance industry, comprises of Shari’ah-Compliant ventures like Pak-Qatar Family Takaful Limited, Pak-Qatar General Takaful Limited and Pak-Qatar Investments Limited. These ventures are driven by modern technology and a service-culture to achieve the fastest growth and highcredibility, by providing innovative Takaful solutions since 2007.
National
Quetta customs earns Rs5595m more revenue & impounds 620 vehicles in nine months T
ISLAMABAD
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he Model Customs Collectorate (MCC) Quetta generated Rs5595million additional revenue of all the duties and taxes during Rirst three quarters (July to March) FY17-18 against the same corresponding FY16-17 while it took into possession 620 NDP vehicles priced at Rs625million during nine months of FY17-18. Collector, Model Customs Collectorate Quetta, Ashraf Ali stated this while giving an exclusive interview to Customs Today. He remarked that the collectorate Quetta regarding comparative revenue performance between Rirst three quarters (July to March) FY17-18 versus identical duration of FY16-17 showed satisfactory performance during current Rinancial year against the same previous period. Talking about the revenue performance, he said that the MCC Quetta earned Rs5595million extra revenue of all taxes during Rirst nine months of FY17-18 against the identical corresponding duration under the same head. He added that the Quetta Collectorate received Rs16605million under all the heads
during above said period of FY17-18 whereas it did Rs11010million under the identical heads during the same previous period. Telling about the details of all heads’ revenue, he said that the MCC Quetta collected Rs2736million extra revenue as Customs Duty (CD) during Rirst three quarters FY17-18 against the same corresponding FY16-17. He added that the MCC Quetta got Rs6610million during nine months of FY17-18 while it did Rs3874million under the CD during the identical duration. Ashraf Ali
Tuesday April 17, 2018
told CT that the MCC generated Rs1489million extra revenue of Sales Tax (ST) during nine months of FY17-18 against the same corresponding period. He further said that the MCC received a revenue of Rs6321million under the head of ST during Rirst three quarters of FY1718 against a revenue collection of Rs4832million during the identical previous duration. The MCC Quetta earned Rs281million extra revenue under the head of Additional Sales Tax (AST) against the same period of corresponding period.
‘economic development linked with agriculture uplift’
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PESHAWAR
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resident Pakistan Economy Watch, Dr Murtaza Mughal has said agriculture was a backbone of the economy and without its development, the dreams of economic prosperity would hardly be materialized. He said the desired targets of economic growth can easily be achieved by promoting agriculture sectors for which more facilities should be given to farmers and growers, said a press release. Dr Mughal said Pakistan was an agriculture country and known for high milk production in the world. He suggested that solid efforts were required to address problems of the people associated with milk industry and livestock owners for increasing production of milk and meat to cater people’s demands. He was of the opinion that the development of agriculture and livestock was vital for food security and meat production, which will only be achieved by giving incentives to people associated with livestock and agriculture sectors.
punjab excise’s collection increased to Rs32 million
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LAHORE
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rovincial Minister Excise & Taxation Mian Mujtaba Shuja ur Rehman has said that the ratio of annual tax collection of the department increased from Rs. 8 million to Rs 32 million due to the efRiciency and transparency introduced in the system. Addressing a seminar held in connection with Tax Day celebrations , he said that no development was possible without an effective revenue collection system. When masses believed that their tax money would be spent to facilitate them, he added, they would never
consider tax as burden for them. It was need of the hour to make the tax collection system transparent and expand its net in order to collect more revenue. Mian Mujtaba said Excise Department had been put on modern lines during last ten years by ensuring computerization, transparency and expansion in tax net of the department. There was a time when all the system was being run manually but now 90 percent of the department had been switch over to digitalization, which helped a lot to curb corruption. Moreover, due to centralized system of motor vehicle registration, not only the citizens had been facilitated but the criminal and
terrorist elements had also been captured, he mentioned and disclosed that Excise Department was planning to introduce universal number plate system during the next phase which would provide the same serial number for the whole of the province. The department was also planning to receive taxes through online system and State Bank had allowed Rive national banks to collect taxes under online system. The department, he said, had also decided to introduce smart registration cards having such security features which had not so been provided by any other province. Provincial Minister said that facilitation centers for collection of revenue
from motor vehicle and property owners would be set up at all the nine divisional headquarters till June this year. He said that payment of tax should be considered as national obligation and not the burden, adding that an awareness campaign in this regard must be launched at college and university level. Later, talking to the media, the Minister said that there was no future of those elements who changed their political loyalties. PML would win the next election with heavy mandate once again in South Punjab as Chief Minister Shehbaz Sharif had completed a number of mega development schemes in the area.
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World Customs
China filed a complaint against USA to WTO
BEIJING: China filed a complaint to the World Trade Organization (WTO) against US President Donald Trump’s decision to impose import duties on steel and aluminum. The Asian country has requested a 60-day consultation with the United States to resolve the dispute. If the two sides do not find a solution, the next step is for Beijing to ask for a ruling by a trade expert group. According to China, customs duties of 25% for steel imports and 10% for aluminum imports violate international trade rules.
Tuesday April 17, 2018
Salmon smuggling china cracking down on triad crime
Africa’s trade agreements remain unfulfilled
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CAPE TOWN
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igures for early April 2018 show salmon prices have spiking in China, up by over 50 percent year-on-year. Per kilo for large size (six to seven kilograms) of whole Chilean and Norwegian salmon at the Jingshen market in Beijing this weekend, as buyers sought to capitalize on lower supply following a crackdown on rampant smuggling from Vietnam. The squeeze could, ironically, drive a new wave of smuggling to meet continued demand for salmon. Reports suggest an increase in smuggling in small amounts by pedestrians crossing the border between mainland China and Hong Kong – a route long favored by walkover smugglers getting contraband U.S. beef through Hong Kong, dutyfree, in their suitcases.
Japan doubles oil imports from Russia mports of crude from Russia to Japan more than doubled in February compared to the previous month, according to the latest report by the Japanese Ministry of Economy, Trade and Industry (METI). In February, exports of Russian Sokol crude to Japan grew to 223,000 kiloliters from 112,000 kiloliters in January, while crude deliveries from the ESPO (Eastern Siberian Pacific Ocean) pipeline increased by 35 percent month-on-month to 355,000 kiloliters. At the same time, Japan purchased 379,000 kiloliters of Sakhalin crude oil, which is four-and-a-half times more than during the previous month. According to the ministry, total imports of Russian crude had declined year-on-year. In February, Japan bought some 466,000 kiloliters of oil from Russia compared to 1.27 million kiloliters a year ago. –CB Report
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China’s salmon smugglers appear to have been collateral damage in a continued crackdown on politically connected triad gangs and an increased vigilance on illegal imports of waste after China banned such imports by its giant waste recycling industry from January 2018. Several import-export companies operating in China surveyed for this
article reported that China’s keenness to reduce pollution by enforcing its environmental rules – including an end to waste recycling – has resulted in more vigilance on all types of imports by customs. “There are less places to hide,” according to one European executive sourcing from China and Vietnam for European buyers.
Dutch offshore wind plans to offset groningen gas cuts
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lans for offshore wind farms and new power cables are expected to help facilitate Dutch government plans to close coal plants and end gas production at the Groningen Rield by 2030, an analysis by S&P Global Platts shows.We have essentially all coal units retiring by 2030 and not much gas running [in the power sector], with Dutch demand largely met by wind and imports,” Platts Analytics Managing Di-
rector of Global Power Bruno Brunetti said. “Due to the carbon Rloor, gas plants that will be running beyond 2030 will be at a high power price,” Brunetti added. At present, coal and gas supply over 75% of Dutch electricity, with wind and net power imports around 10% each, according to transmission system operator TenneT. Last month, the new coalition government announced two major policy. –CB Report
frica will remain unanswered unless all countries strive to fulRil agreements to the letter unlike piece-meal legislation, a leading economist has noted. Key among the trade agreements that have been signed and not ratiRied are the Comesa Free Trade Area (FTA) and the recently signed Continental Free Trade Area (CFTA) in which 44 African countries signed various agreements during the justended AU Summit in Rwanda but remain to be ratiRied. Sindiso Ngwenya, the Comesa Secretary-General, noted that while there has been a zeal to append signatures on various trade treaties, the majority of agreements still remain on the shelves, unratiRied to make them fully operational and bolster intra-trade growth in the 54 member states. In an interview with The Southern Times in Lusaka, Ngwenya, the outgoing chief adminis-
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thailand expected to post 4.1% growth
hailand’s economy is expected to grow by 4.1 percent in 2018, the fastest pace since 2012, says the latest edition of the World Bank’s Thailand Economic Monitor. Thailand’s economic recovery is broadening in 2018. While rapid export growth continues fueling the economy, an increase in capacity utilization and acceleration in capital goods imports suggest a nascent domestic demand recovery as well. Regulatory reforms and overall policy stability are contributing to continuing improvements in business sentiment. “Thailand cannot attain advanced country status if it cannot
Zero VAt on sales to peZA firms to stay
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MANILA
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he sale of goods and services to Philippine Economic Zone Authority (PEZA) entities will remain subject to zero percent value added tax, clearing a confusion over President Duterte’s line veto of zero VAT rating on the sale
of goods and services to separate customs territories under the TRAIN Law. The Philippine Exporters Confederation Inc. (Philexport) said PEZA issued a memorandum circular last month to reiterate that there is “status quo on the VAT zero-rating incentive on sales of goods/services to customs territory.” The circular dated March 12 was addressed to all zone ad-
trator of 25-year-old Comesa, noted that while there has been increasing zeal for countries in various groupings to sign agreements and necessitate their operationalisation, many have remained on the drawing board, incomplete because they are not ratiRied to the letter. The Tripartite FTA brings together a population of 700 million people with an estimated Gross Domestic Product of well over US$1.4 trillion. It is envisaged the TFTA will help improve intra-Africa trade by eliminating and reducing tariffs and non-tariff barriers. Last year, Mauritius signed the COMESA-EACSADC regional trade framework. With that country’s Minister of Foreign Affairs, Regional Integration and International Trade, Seetanah Lutchmeenaraidoo, signing the agreement in Ebene Cybercity, which was witnessed by Ngwenya. The tripartite agreement was launched in June 2015. Currently, only Egypt and Uganda have signed and ratiRied the agreement.
ministrators and managers as well as PEZA-registered enterprises, according to the export group. The DOF has informed PEZA that the TRAIN Law does not affect the current zero rating of sales of good and services to PEZA locators. “The veto on certain provisions of the TRAIN Law, specifically the provision on the zero-rating of sales of goods/service to separate
meet the challenges of innovation,” said Dr. Kobsak Pootrakool, Minister Attached to the Prime Minister’s OfRice. “With economic growth exceeding 4 percent this year, for the Rirst time since 2012, Thailand has the potential, with intensifying structural reforms, to raise productivity and grow even faster over the medium term,” said Ulrich Zachau, World Bank Director for Thailand, Malaysia and Regional Partnerships. “In addition to education and skills reform and strong implementation of quality infrastructure investments, increasing competition, especially in services. –CB Report
customs territory has caused uncertainties and serious concern on the part of PEZA locators. With some local suppliers already incorporating the VAT in their sales of goods/services to ecozone customers. PEZA sought clarification from the Department of Finance as to whether the said veto applies to PEZA locators,” the memorandum circular stated.
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India must be practical in managing trade policies MUMBAI: The Indian government is hard pressed to create more jobs and sustainable livelihoods. Chinese products are flowing into the country, providing good value for consumers no doubt, but also killing Indian enterprises and jobs they provide. When the going gets tough, the tough must get going. “Make in India” will remain a slogan if both, the Indian government and Indian entrepreneurs, don’t step up to their challenges. M.K. Gandhi said that when he was fighting for India’s political freedom, Jamsetji Tata was fighting for India’s economic freedom. Tata put up a modern, integrated steel plant against great resistance from the British government. However, he was determined that India must have industrial capabilities.
Shipping Activity at port Qasim hipping activity remained active at the Port where four ships, Lris-T, GH Cilation, YM Miranda and Gaschem pacific carrying Canola seeds, Coal and Chemicals were arranged berthing at Grain & Fertilizer Terminal, Port Qasim Electric Power Terminal, Multi-purpose Terminal and Engro Vopak Terminal respectively on Thursday, Meanwhile three more ship, Northern Power, Vendonisia, and Corona carrying Containers, Coal and Palm oil also arrived at outer anchorage of during the same day. Ten ships namely, Tempanos, White Fin, Iris-T, GH Citation, Navios Achilles, Maritime Setoshio, AL-Shumail, YM Miranda, Gaschem Pacific and NCC Maha are currently occupying PQA berths to load/offload Containers, Clinker, Project cargo, coal, Chemicals, LNG and Palm oil respectively during last 24 hours. A cargo volume of 91,307 tonnes, comprising 42,692 tonnes import cargo
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Ports & Shipping
Bijenjo invites Dutch maritime companies to invest in pakistan
Russia SpVc imports up 19% in Q1 ussia’s SPVC (solution polyvinyl chloride) imports rose 19% in the January to March 2018 period year on year to 5,700 tonnes, according to MRC’s DataScope report on Friday. Russian producers managed to increase their SPVC exports by 50%, the data showed. March SPVC imports grew to 1,900 tonnes from 1,200 tonnes a month earlier. Thus, overall imports of resin to Russia totalled 5,700 tonnes in JanuaryMarch 2018, compared to 4,800 tonnes a year earlier. At the same time, Russian producers were forced to ship resin for export more actively this year, export sales increased 1.5 times. Chinese producers have been the key foreign SPVC suppliers to Russia for the past several years. March imports of Chinese acetylene process resin grew to 1,900 tonnes from 800 tonnes a month earlier. Overall imports of resin from China were 5,100 tonnes in the first three months of 2018, compared to 3,900 tonnes a year earlier. –CB Report
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orts and Shipping Minister Mir Hasil Khan Bizenjo has invited Dutch maritime companies to invest in Pakistani maritime industry and take beneRits from Pakistani maritime infrastructure. He also called for expanding cooperation between Pakistan and the Netherlands, particularly in port and shipping sector. Maritime technology in the Netherlands is highly developed. A powerful maritime nation from old days with strong trading links around the world, the Netherlands also has the largest inland Rleet in Europe and one of the strongest maritime clusters in the world. In a meeting with Dutch ambassador Ardi Stoios-Braken, Mir Hasil Khan Bizenjo said that there was immense potential of trade exists between Pakistan and Netherlands. There is a need to expand cooperation between ports and shipping of
Tuesday April 17, 2018
both countries. Both Bizenjo and Ardi discussed bilateral relations besides matters of mutual interest. The ambassador Ardi Stoiosbraken appreciated the development of Gwadar Port and said her country would extend all possible cooperation for capacity building of different ports in Pakistan. While appreciating the infrastructure development in Gawader Port, the Ambassador said that the investment in infrastructure and development on various ports
of Pakistan is of great importance. She further said that the Netherlands wanted to increase its footprints in Pakistan through collaboration and partnership in several sectors epically in the development and expansion of infrastructures at various ports of Pakistan. She highlighted that four hundred years ago, Dutch naval entrepreneurs operated the world’s largest Rleet and established the world’s Rirst multinational company.
world’s largest iron shipper says china import level off and 48,615 tonnes export cargo inclusive of containerized cargo carried in 1,937 Containers (TEUs), (428 TEUs imports and 1,509 TEUs exports) Was handled at the Port during last 24 hours. Three ships,Tempanos, NCC Maha and Gaschem Pacific sailed out to sea on Friday morning, while two more ships AL-Shumail and Navios Achilles are expected to sail on same day in the afternoon. A total of seven ships, Express Rome, CMA CGM Virginia, GH Chinook, Pacific Talent, NCC Tabuk, Loch Nevis and Al-Soor-II carrying Containers, Palm Oil Coal and Diesel Oil are expected to take berths at QICT, MW-1, LCT, PIBT and Expected and FOTCO respectively on Friday. while container ships Virgo, northern Power and CMA CGM Attila are due to arrive at Port Qasim. –CB Report
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he world’s largest iron ore exporter delivered a mixed message on the outlook, raising near-term price forecasts but combining that revision with a more sombre message that China’s gargantuan imports are set to level off as steel production eases in the coming years. Iron ore will average $61.80 a metric tonne this year and $51.10 in 2019, Australia’s Department of Industry, Innovation and Science said in a quarterly report on Monday. That compares with projections of $52.60 and $48.80 in the previous outlook. The forecasts are for free-on-board prices. Prices are “expected to moderate, to better reRlect the fundamentals of growing low-cost supply from
Brazil and moderating demand in China,” the department said, predicting rising global volumes this year as well as next, driven by new mines including Vale’s giant S11D project in Brazil. Steel production in China will drop each year through to 2023, while iron ore shipments from Australia and Brazil rise be-
fore levelling off, it forecast. Iron ore received a battering in March, collapsing into a bear market, as investors fretted about weaker-thanexpected springtime demand in top user China, record holdings accumulated in mainland ports, and jitters about global growth as the US and China swap barbs on trade.
Barclays is among banks that have Rlagged the risk of a further weakening of prices this quarter, highlighting the potential for a switch away from higher-content ores, which have seen strong demand as Beijing acts to battle pollution. “Iron ore import demand is expected to be weighed down by declining steel production in China,” the department said. “The main drivers of declining steel production are slowing construction activity and infrastructure investment, and increasingly stringent environmental regulations.” The spot price for ore with 62% content in northern China was at $63.35 a dry tonne, ahead of a two-day mainland break, according to Mysteel.com. That compares with $73.50 at the end of last year, and this year’s peak of almost $80 in late February. So far in 2018, the raw material has averaged about $73 a ton.
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Anti-graft investigation: NAB summons Shehbaz Sharif’s son-in-law LAHORE: The National Accountability Bureau (NAB) has summoned Imran Ali, who is the son-in-law of Punjab Chief Minister Shehbaz Sharif, in an anti-graft investigation.According to NAB officials, Imran Ali has been summoned to record his statement with the bureau in relation to an inquiry into his owning assets that do not match his declared sources of income. NAB Lahore has recently launched several inquiries against bureaucrats and politicians, both from the government and opposition.
Tuesday April 17, 2018
Business
cpec vision translating into reality: Ahsan ISLAMABAD
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inister for Planning, Development & Reform and Interior Professor Ahsan Iqbal said China Pakistan Economic Corridor (CPEC) is the most important pillar of Belt and Road Initiative and due to commitment and sincerity from both Pakistan and China, the vision of CPEC was fast translating into reality. The minister made these remarks during his meeting with Vice Chairman National Development Reforms Commission (NDRC) Ning Jizhe here. He said work on CPEC projects had seen positive progress
fiA arrests 10 deported from turkey KARACHI
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over the past Rive years in Pakistan. Pakistan has achieved 5.8% GDP growth rate which is highest in the last eleven years and growing. “We have almost overcome energy crisis which was daunting our economy. With growing cooperation
kp govt orders tax exemption on fata food items, rehab material
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ederal Investigation Agency (FIA) arrested 10 Pakistanis deported from Turkey upon their arrival at Sialkot international airport. According to FIA Divisional Deputy Director Mufakhar Adeel, human traffickers had sent them to Turkey for going to Greece and other European countries after getting big amounts. The Turkish security agencies had arrested them for illegally entering into the country and deported them to Pakistan.
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of both countries and particularly inclusion of space technology, the old phrase that our friendship is higher than Himalayas must be changed. Pakistan and China friendship is now higher than stars” he added. The minister said the operationalization
of Energy Projects in Sahiwal and Port Qasim is a testament of the high speed with which CPEC projects have been completed. KKH and MultanSukkur highway projects are progressing well and would contribute signiRicantly towards upgrading Pakistan’s transportation infrastructure. ML1 railways up-gradation project, connecting Peshawar to Karachi, formed an important part of CPEC’s development portfolio and it would beneRit people, especially along the route and signiRicantly contribute to economic and social development of Pakistan with improved and high speed railway logistics, he added. Ahsan Iqbal apprised Vice Chairman, NDRC about other CPEC projects including in the Rields of Infrastructure, Energy, Gwadar and Special Economic Zones.
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he government has ordered tax exemptions on the food items transported to Fata and material used for the rehabilitation of internally displaced persons. Chairing a conference of political agents here, Khyber Pakhtunkhwa Governor Iqbal Zafar Jhagra issued directions for the resolution of the problems of Fata residents through jirgas in line with local traditions. Fata additional chief secretary
Sikandar Qayyum, political agents and deputy commissioners from Frontier Regions attended the conference, said an official statement said. The political authorities levy tax on all food items transported from settled areas of the country to the tribal agencies. The political agents concerned issue permits to the local traders and businessmen for transporting edible commodities. Also, the building material used in the reconstruction work in the conflict areas of Fata has also been exempted from taxes. As militancy
had caused widespread damages to infrastructure and public property in the region, there is a demand for construction material. Governor Jhagra told participants that the successful operations led by the Pakistan Army, sacrifices of the personnel of law-enforcement agencies and tribesmen had led to the restoration of peace in Fata. He directed the respective political administrations to take imperative and concrete steps to maintain peace and resolve problems of the people in the region on urgent basis.
weekly inflation rises 0.36% ISLAMABAD
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he Sensitive Price Indicator (SPI) based weekly inflation for the week ended for the combined income groups witnessed increase of 0.36 percent as compared to previous week. The SPI for the week under review in the above mentioned group was recorded at 223.32 points against 222.51 points last week, according to latest data released by Pakistan Bureau of Statistics (PBS). As compared to the corresponding week of last year, the SPI for the combined group in the week under review witnessed increase of 0.29 per cent. The weekly SPI has been computed with base 2007, 2008=100, covering 17 urban centers and 53 essential items for all income groups. Meanwhile, the SPI for the lowest income group up to Rs 8,000 also increased by 0.22 percent as it went up from 210.02 points in the previous week to 210.49 points in the week under review. As compared to the last week, the SPI for the income groups from Rs 8001 to 12,000, Rs 12,001 to 18,000, and Rs 18,001 to 35,000 and above 35,000 increased by 0.28 percent, 0.33 percent, 0.37 percent and 0.43 percent respectively.
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nAB approves three references in Modaraba cases ISLAMABAD
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Regional Board Meeting of the National Accountability Bureau (NAB), Rawalpindi/ Islamabad, approved three references in multi-billion Modaraba cases. The approval was given in a NAB Regional Board meeting which was held with the chair of its Director General Naeem Mangi on Thursday
and was attended by the deputy prosecutor general Accountability, directors, case officers, legal consultants and other officers concerned. The board approved three references. In the first case, supplementary reference was approved against Accused Abdul Hameed in case title State v/s Maulana Abdullah, M/s Islamic Traders Pvt Ltd, Rawalpindi & others. During the course of the investigation, it transpired that accused
Abdul Hameed, in connivance with other accused, received huge money on the pretext of Modaraba business and misappropriated an amount of Rs400.1 million. Recently, the accused was arrested by Rawalpindi NAB and remained in its custody. Later, he was sent into the judicial custody at Adiala Jail. In the second case, the regional board approved supplementary reference against Uzair Shah in case of the State v/s M Riaz and others. During
the investigation, it was confirmed from SECP that accused was never got registered its company with SECP for doing Modaraba business. Thus the accused person dishonestly and with mala fide intentions gave the impression to the general public that his company is registered with the SECP. Accused Uzair Shah, in connivance with other accused persons, cheated and defrauded to the tune of Rs272.7 million. Recently, the accused was
arrested by the Rawalpindi NAB and remained in its custody. Later, he was sent into judicial custody at Adiala Jail. In the third case, the board approved supplementary reference against Shahid Aziz and Muhammad Yasir in M/s Elixer group and others. During the investigation, it transpired that the accused persons induced public at large and collected amount from them in the name of Modaraba and misappropriates the same.
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UAE banks could raise fees to offset VAT costs ABU DHABI: UAE banking sector comes to terms with new regulations and the implications of VAT, KPMG’s annual UAE banking perspectives report reveals how technological innovation and strong corporate governance will enable banks to transform into robust financial institutions. The report said some banks are even exploring automated decision-making based on sentiment analysis by extracting data from millions of emails and other data sources. The report said that as banks grapple with the new VAT regime and the high compliance costs associated with mandatory VAT registration, banks could be forced to increase their fees to compensate for the additional costs.
tax amnesty scheme termed politically motivated
Tuesday April 17, 2018
Chambers
chinese delegation of Shenzhen city visits icci to explore JVs
LAHORE
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slamabad Chamber of Small Traders has criticised the recently-announced tax amnesty scheme terming it politically motivated. The decision amounts to punishing honest taxpayers while rewarding the tax cheats which would further weaken the tax compliance and encourage the undocumented economy, it said. The government should have avoided shortcuts and refrained from laying down arms in front of the tax evaders, said Patron Islamabad Chamber of Small Traders Shahid Rasheed Butt. The outcome of the fourth tax amnesty scheme of the incumbent government will not be different from the previous ones and it will
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not be beneficial to the economy, he added. Shahid Rasheed Butt said that scheme has been announced just before the elections while other political parties have not been taken into confidence, therefore, they have started opposing it which has raised questions about its success. Moreover, he said, people are not certain that their money would be utilized properly and they are sure that they would avoid punishment for evading taxes which discourage tax compliance. The business leader said that announcing frequent schemes encourages evasion, therefore, such a scheme should be announced once in a decade. Pakistan’s best scheme was announced in 2008 while helped the then government to raise Rs 2.8 billion while Indonesia raised $330 billion in just two such schemes. Indonesia has announced four tax amnesty schemes in seventy years while it has become a routine in Pakistan, he added.
ISLAMABAD
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Chinese delegation of Shenzhen city led by Jia Changsheng, Deputy Director General, Shenzhen Investment Promotion Agency visited Islamabad Chamber of Commerce & Industry and exchanged views with the local business community on the possibilities of joint ventures and partnerships in areas of interest. Speaking on the occasion, Jia Changsheng, Deputy Director General, Shenzhen Investment Promotion Agency said that Shenzhen was business hub of China and was making rapid economic development with a GDP of US$ 350 billion. He said the companies of Shenzhen were making hi-tech products and they were interested in JVs with Pakistani counterparts. He said after CPEC, many Chinese were coming to Islamabad and there was a great need for more Rive star hotels here. He said that Shenzhen’s investors have good expertise in this Rield and they were interested in building Rive star hotels in Pakistan. He said Shenzhen’s in-
vestors were also keen to build high rise buildings in Pakistan. Jia Changsheng said that China was developing Shenzhen as a global city and Pakistan could achieve good outcomes for its economy by developing close cooperation with it. He said the purpose of Shenzhen delegation’s visit was to explore prospects for JVs and investment in Pakistan that would also help in further improving bilateral trade and economic relations between the two countries. He also in-
vited ICCI delegation to visit Shenzhen and explore new avenues of mutual cooperation with Chinese counterparts. Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry in his welcome address said that Pakistan offered great prospects for investment in hotel industry and Chinese investors should explore JVs for building Rive star and 7 star hotels in Pakistan. He said 9 special economic zones would be set up in Pakistan under CPEC
‘Bosnia great destination for pak businessmen’ LAHORE
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mbassador of Bosnia & Herzegovina Sakib Foric has said that Bosnia is a small but developed country and is a road to European Union. Pakistan is an amazing country and immediately acknowledged Bosnia but cordial and brother relations are not seemed in the mutual trade of around just 30 million dollars. He was speaking at the Lahore Chamber of Commerce & Industry. The LCCI President Malik Tahir Javaid presented the address of welcome while the LCCI Senior Vice President Khawaja Khawar Rashid, Honorary Consul of bosnia Danish Iqbal, Honorary Consul of Spain Zaheer Islam, Sohail Lashari, Mian Muhammad Nawaz and other mem-
bers were also present on the occasion. “Pakistan is peace keeper and feels us very deeply. Pakistan have done what a brother can do but these brotherly relations should also be translated into trade & economic ties”, Bosnian Ambassador said and added that at present only 37 Pakistani companies are operating in Bosnia. He said that Bosnian government has given immense beneRits to the businessmen. There is a tax exemption for Rive years for new company while government also help establishment of new company. He said that company established in Bosnia can do business with European Union. He said that electricity is cheaper and taxes are low in Bosnia as compared to EU. He invited Pakistani businessmen to join hands with their Bosnian counterparts and explore trade and investment opportunities in Bosnia
where they can enjoy number of beneRits. The Ambassador, who spent well over an hour at Lahore Chamber of Commerce and Industry, invited the Pakistani businessmen to visit the country for having first hand knowledge about the available opportunities and initiating joint ventures with their Bosnian counterparts. The LCCI President Malik Tahir Javaid said that Pakistan and Bosnia have good brotherly ties based on common religion and sound diplomatic relations. However, the trade figures of recent years do not represent these relations at all. He said that Lahore Chamber of Commerce has been taking keen interest in projecting the trade potential of Central Asian Republics. ChinaCentral Asia Corridor is one of the five corridors being established under Belt & Road Initiative.
and Chinese investors should bring technology and machinery for setting up industrial units in these SEZs. He said Pakistan offered great investment opportunities in many sectors of its economy including infrastructure development, energy, exploration of oil, gas & minerals, light engineering, IT & telecom, logistics & transportation and stressed that Chinese investors should explore JVs in these areas in Pakistan to achieve lucrative business results.
wcci lauds tax amnesty scheme announced by govt slamabad Women’s Chamber of Commerce and Industry (IWCCI) lauded the recently announced tax amnesty scheme saying that it will reduce the burden on the poor and the salaried class. However, it said, the FBR would have to work harder to meet the targets for which business community should not be harassed. Now the government should focus on the upcoming budget which should be business friendly and pro-growth, said Samina Fazil, founder President, IWCCI. She said that economic issues should be preferred over political matters in the budget while influential lobbies should be discouraged which have initiated efforts to get unjustified benefits. –CB Report
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ANF recovers over 11kg heroin from passengers at BBIA RAWALPINDI: Anti-Narcotics Force (ANF) Rawalpindi thwarted a bid to transport over eight kilogram of heroin at Benazir Bhutto International Airport (BBIA). According to an ANF statement, the officials of the force, acting on a tip-off by an informer, intercepted a vehicle entering parking area of BBIA and recovered 8.65 kilogram of heroin concealed in the panels of its front doors.
Tuesday, April 17, 2018
CUSTOMS BULLETIN
Multan customs impounds vehicles & items worth Rs49.31m in different actions QUETTA wAQAR AHMeD AnSARi www.customsbulletin.com
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he Customs Anti-Smuggling Organization (ASO) Multan has took into possession smuggled goods and vehicles valued at Rs49.31million in various anti-smuggling activities during the month. The Anti-Smuggling Organization Multan has launched an intensive crackdown on the smuggled items and vehicles to stop the smuggling. The customs collectorate has enhanced the monitoring of various routes adopted for movement of smuggled vehicles and goods. The Multan ASO has increased the patrolling on the directions of Collector Ambreen Ahmad which is producing fruitful results. The Multan Customs Anti-smuggling Organization has took into possession 33 vehicles priced at Rs33.05million throughout the month of March. These impounded vehicles include Toyota Hilux Surf, Mitsubishi Pajero, Land Cruiser, Toyota Premio, Honda Civic, Suzuki Alto and other ones in March. The vehicles were found nontampered and tampered during examination of the Customs Anti-
smuggling Organization. The Multan Customs has also seized a huge quantity of apples, cloths and other
miscellaneous items worth Rs16.26million. The customs has formed 40 seizure cases valued at
Rs49.31million in March of the ongoing fiscal year. On the other hand, it has detected 14 various seizure
cases of Rs17.82million during the corresponding month of March 2016-17.
ptcL posts revenue of Rs30b with 4% YoY growth in first quarter MULTAN
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akistan Telecommunication Company Limited (PTCL) announced its Rinancial results for the Quarter ended March 31, 2018 at its Board of Directors meeting held. PTCL Group’s revenue for Q1, 2018 has grown Year over Year (YoY) by 4 per cent to Rs 30 billion as a result of
positive contribution by all group companies. After arresting the rate of revenue decline in 2017, PTCL Q1, 2018 revenue of Rs 17.5 billion has registered growth for the Rirst time since Q2 2014 and posted an increase of 1 per cent over same quarter of last year. Ufone revenue has improved by 4 per cent YoY despite tough competition in cellular market. UBank, a micro Rinance banking subsidiary of PTCL, has shown very high growth and almost doubled its revenue over Q1, 2017. PTCL Group’s operating proRit for the
quarter improved by 27 per cent over Q1 2017 operating proRit, normalized for one offs. PTCL Group’s bottom-line has, however, declined by 10 per cent
to Rs 1 billion mainly due to adverse impact of currency devaluation. Adjusted for Forex impacts and other one-offs, bottom line of the Group would have been 28% higher than last year. PTCL’s Rlagship Fixed Broadband DSL service accelerated its momentum and posted revenue growth of 9% over Q1, 2017. There is, however, decline in domestic and international voice revenues due to continued conversion of subscribers to OTT and cellular services resulting in declining voice traffic volumes. PTCL’s
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operating and net profit is lower by 3 % and 14 % compared with Q1 of last year mainly due to higher marketing and customer acquisition cost spent at the start of the year and lower nonoperating income due to reduced funds on account of VSS and CAPEX investment during last year respectively. In 2018, PTCL continues its comprehensive Network Transformation project with several additional exchanges fully transformed in different parts of Pakistan, said a press release issued here.