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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS

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Karachi, Sat April 7, 2018

MULTAN

IMRAN ALI

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hief Collector of Customs Central Region Zeba Hai Azhar will preside over a Collectors Conference on April 6 (Friday) to review performance of the Collectorates. The chief collector has called all the collectors of the Central Region in the meeting to discuss revenue collection measures and performance by the ofKicials con-

cerned of the four Collectorates. Collector of Customs Multan Ambreen Tarar, Collector Customs Preventive Lahore Faiz Ahmad, Collector of Customs Appraisement Jamil Nasir and Faisalabad Collector Mirza Mubashir Baig will participate in the chief collectors conference. All the collectors will brief Chief Collector Zeba Azhar on the revenue collection measures during the third quarter of the Kiscal year 2016-17. Every collector will be given 30 minutes to brief their Collectorate’s per-

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formance. Sources told Customs Today that the collector of all the four Customs Collectorates will present their revenue collection reports of the Kirst three months of the on-going Kiscal year 201617. Collectors of all four Customs collectorate will also present their antismuggling performance of the nine months with corresponding economic years to compare performance in the jurisdiction and they will inform about current strategy plan to curb smuggling in the Jurisdiction.

Chief Collector Zeba Azhar to preside over Collectors Conference today

PM’s economic reforms package to expand tax network: Qaiser Sheikh

Customs Export retrieves evaded amount of Rs9.95m after serving notices

PM announces economic reforms package, tax amnesty scheme

Peshawar Customs arrests four accused car smugglers from Khyber Agency

Chief Collector Zeba Azhar will preside over a Collectors Conference on today | SEE PAGE 01 |

Qaiser Sheikh has said that the prime minister’s economic reforms package | SEE PAGE 02 |

Customs Export has recovered an evaded amount of taxes and duties of Rs9.95m | SEE PAGE 02 |

PM has announced a big relief for salary persons by enhancing tax exempt | SEE PAGE 05 |

Customs Peshawar has taken into possessionaNDPvehicleandapprehended | SEE PAGE 08 |

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Traders flay proposed increased in WHT Saturday, April 7, 2018

National

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. It may be recalled that an aide to the prime minister said that withholding tax rates for non-filers of income tax returns would go up further from July.

Customs Export retrieves evaded amount of Rs9.95m after serving notices

KARACHI

CUSTOMS BULLETIN REPORT

WAQAR AHMED ANSARI

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he Customs Export has recovered an evaded amount of taxes and duties of Rs9.95million from defaulter companies which were earlier issued with notices to pay the outstanding dues. Sources told Customs Today that, during a scrutiny of the import data, it was revealed that M/s Sabeen Marble Pak Colony Karachi availed undue beneKits and concessions by importing polish and cutter machines by misusing the SRO 561 through Examiner Mateen Bilgrami on September 9, 2017. Sources further told Customs Today that the company was allegedly involved in tax evasion of Rs7.51million. The investigation continued after detecting the tax evasion and the Customs Export served on it with a Kinal notice on March 19, 2018 to deposit the evaded amount within 14 days. After receiving the notice, the management of M/s Sabeen Marble Pak Colony Karachi deposited the evaded amount in the ofKicial account of the Customs Export on 2nd of April. The management of the M/s Feroz Lawn Wala also cleared Rs2.44million of taxes and duties. Sources told the correspondent that the M/s Feroz Lawn Wala also availed undue benefits and concessions and avoided paying taxes

PM’s economic reforms package to expand tax network: Qaiser

hairman of the National Assembly’s Standing Committee for Finance Qaiser Ahmed Sheikh has said that the prime minister’s economic reforms package would expand the tax network. Talking to a news channel, he said credit went to the present government for announcing an economic reforms package to facilitate the people. There should be direct taxation system instead levying indirect taxes, he added. Qaiser Sheikh also welcomed the PM’s announcement regarding exempting the people earning Rs 100,000 per month from tax. Commenting on the Indian human rights violations in occupied Kashmir, he said the international community should take cognizance of Indian barbaric activities against the innocent Kashmiris. He said India was committing gross human rights violations and involved in the killing of Kashmiri people struggling for their inalienable right to self-determination.

according to the customs bylaws. The Customs Export authorities issued to it a final notice on February 6, 2018, but nobody received the notice on that time. After few days, the company received the notice and deposited the evaded amount of taxes on 3rd April. Meanwhile, The Customs Export has recovered an evaded amount of taxes and duties of Rs8.36million from defaulter companies

which were issued with notices to pay the outstanding dues. Sources told Customs Today that, during a scrutiny of the import data, it was revealed that M/s Wajanti Associate Karachi availed undue benefits and concessions after importing different consignments of steel scrape by misusing the SRO 568 through Examiner Sabahat A. Siddique on August 12, 2017. Sources further said that the company was

allegedly involved in the tax evasion of Rs4.81million. After detecting the tax evasion, the Customs Export served on it a final notice on 12th of March 2018 to deposit the evaded amount in 14 days. After receiving the notice, the management of M/s Wajanti Associate Karachi deposited the evaded amount in the official account of the Customs Export on 30th of March in favour of the Custom Export.

NAB chairman reviews performance of bureau

ISLAMABAD

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ational Accountability Bureau Chairman Justice (retired) Javed Iqbal has chaired a meeting to review the performance of operation and prosecution division. The meeting reviewed the overall progress of NAB cases especially the mega corruption cases. Last year in October NAB chairman had ordered taking 179 Mega cor-

ruption cases to the logical conclusion as per law immediately after assumption of his responsibilities. The meeting said that NAB had made signiKicant progress and with 101 corruption references have been Kiled in the relevant accountability courts from out of a total of 179 mega corruption cases. The legal proceedings are continuing in the respective accountability courts as per law. The chairman NAB said that NAB is committed to eradicating corruption across the board by

adopting “Accountability for All” policy so that corrupt should be brought to justice. There have been

19 inquiries made and 23 investigations are being conducted in NAB with 36 cases already been disposed of to their logical conclusion. He asked NAB Operation and Prosecution Wings to further improve the quality of corruption references and include references of law and various decisions of similar natures etc. He also appreciated the performance of Operation and Prosecution Wings and hope that they will continue to pull up their responsibilities with best of their abil-

ities as per law. The references Kiled in the respective Accountability Courts would be successful and the conviction ratio of 76 of NAB will be enhanced in the days to come on the basis of law and solid evidence. Regional DGs were directed to conclude the pending inquiries investigations within the stipulated timeframe of ten months besides the mega corruption cases. He directed the NAB ofKicers to extend due respect to all accused and use their authority as per law.

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KARACHI

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rime Minister Shahid Khaqan Abbasi has announced a big relief for salary persons by enhancing tax exempt income up to Rs1.2 million from Rs400,000. The Prime Minister announced the incometax reforms package, which also included a tax amnesty scheme to bring the non-taxpayers and tax evaders into the tax-net and broaden the revenue base of the country where only 1.2 million people pay tax out of the total population of 207 million. Under the new one-time tax-amnesty scheme which would be available till June 30, 2018, local and foreign assets in the shape of cash could be whitened by paying 5 percent and 2 percent penalty, respectively, on the undeclared assets. Besides, the prime minister said, the amnesty scheme also provided a facility of one-time payment of 3 percent penalty for whitening of non-cash assets. The prime minister further announced that

those having undeclared dollar accounts in foreign countries could also declare the same and whiten the money by paying 5 percent of the undeclared dollar amounts. He, however, clariKied that the “politically exposed” people and their families would not be eligible to beneKit from the new tax-amnesty scheme, which unlike the past was not meant to generate revenue but to bring the non-taxpayers and tax evaders into the taxnet and broaden the tax base. Meanwhile, Advisor to the Prime Minister on Finance, Revenue and Economic Affairs Miftah Ismail has said the present government had set targets to collect

maximum tax before announcing the next Kiscal year budget. Talking to a private news channel, he appreciated the prime minister’s announcement for introducing an economic reforms package for expanding the tax network. He said increasing exports would help reduce the current account deKicit being faced by the country. The amnesty scheme would have positive impact on the economy as many incentives had been offered, he added. To a question, he said the people would be held accountable by the Federal Board of Revenue (FBR) regarding tax, which now held data of the people having number of cars or other assets. He appreciated the prime minister’s announcement for exempting the people earning Rs.100,000/ per month from tax. No one could escape from the tax net after the economic reforms package as action would be taken against those concealing their data, he added. To another question, Miftah Ismail said those who would bring more than Rs 10 million amount to the country from s m abroad would be asked about r o f re e-tax their sources of earning. m o c n x i

d a ta d the ounce nclude i n n o s a l a PM nonch g the e, whi n i g r a b k c o pa o the eme t ers int sty sch d e a n v e m x a base ta venue rs and e r e y e a h p tax illion aden t y 1.2 m nd bro l a n t o e e n r e taxotal ry wh f the t count o t e u h t o f o tax lion e pay 07 mil 2 peopl f o n atio popul

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Saturday, April 7, 2018

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EDITORIAL

Political chaos vs economy

According to Federal Interior Minister Ahsan Iqbal, economy of the country would heavily suffer if political instability is continued to persist. The minister is right in his narrative, but the ruling Pakistan Muslim LeagueNawaz has also played a role in creating unwanted troubles for the country. In its four and half years’ tenure, the country showed the worst performance in the realm of economy. The burden of loans was $45 billion when the PML-N took over the rein of the government in Islamabad, but it has now increased to $90 billion and the economists fear the total loan will cross $ 100 billion mark in coming months. Pakistan exported $25 billion worth of goods in 2013, but the exports fell down to $20 billion in four and half years. The agriculture sector lost its vitality and textile industry failed to take benefit of the GSP plus status it achieved from the European Union. Ironically, the foreign exchange reserves were boosted up on the crutches of loans which were taken at higher markup rates.On the political front, the PML-N government failed to take all the political forces along with it which was indispensible for the development of the country. Instead of making conciliation and reconciliation efforts, the government itself went extra miles to snub the opposition political parties. In a nascent democracy like Pakistan, where anti-democratic forces are ever ready to roll down the system, the PML-N leadership failed to show any sign of leniency toward the opposition parties. The government pushed the opposition to the wall with its one sided steps. As a result, when the prime minister packed home, no political party protested against it. Iqbal, who is also planning and development minister, has to convince his leadership that tolerance is the best option and it works in any situation. Due to political chaos, the foreign direct investment is dwindling and local investors are also shy of putting their money in new projects. When politicians fight for anything in open, the official machinery starts protecting its own vested interests. The ultimate losers in this situation are the people or the economy. The government leaders should show a sense of responsibility and maturity and avoid the politics of confrontation.

Need for another bailout package A

LAHORE

DR AFTAB AFZAL

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ccording to the media reports, the government has launched a ‘bail me out’ offensive to avoid a new bailout package from the International Monetary Fund. This is the classic example of financial failure as the government had earlier depreciated the Pakistani rupee to prop up the falling exports and minimize the trade deficit. But it simply did not work and now it is looking toward Saudi Arabia, China and other friendly countries for loans and grants to continue its business as usual in the operational mode. The government has already

started feeling the heat of the rupee’s meltdown and seeks at least $8 billion to get a breathing space. It is naïve to believe that the friendly countries are prepared to lend their extra money to Pakistan without working out any modalities less tough than the IMF. Another failure is the signing of free trade agreements with various countries without deeply understanding the needs and requirements of the nation. As a result, the balance of trade always remained in favour of other countries. Allowing the trade in dollar also created additional troubles for the national economy and trade deficit even with Beijing

reached $12.5 billion during the last fiscal year. Economists believe the government would make maximum effort to avoid any bailout package from the IMF. Instead, it will opt for short term commercial borrowings of $10 billion from various creditors as well as from the Chinese banks. Reports suggest the tapping of Eurobond is also on the table but the government is weighing options to take a decision after observing trends in the international bond market. The Prime Minister’s Adviser on Finance has also ruled out any possibility of requesting the IMF for a new bailout package in spring meetings of Breton Wood Institutions scheduled to be held

next month. The government has already raised $1.77 billion through short term commercial borrowings in first eight months of the current fiscal year. Keeping in view the current state of financial affairs, the future of the economy appears bleak and disappointing. However, the only ray of hope is China Pakistan Economic Corridor and the proposed industrial zones alongside the project. Pakistan and China are trusted friends and are cooperating in various fields of economy. The success of cooperation is in the interest of both countries, especially for Pakistan. Otherwise, nothing can stop Pakistan from knocking the door of the IMF.

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Jordan Manufacturing puts a new twist on business Saturday April 7, 2018

World

AMMAN: Among the indoor collections the company unveiled are Bold & Blue, Global Glam, Modern Farmhouse and Luxury Lodge. The fabrications for the pillows include velvets, linens, chenilles, prints, embroideries and appliques. The pillow line is extensive and diverse, with fabrics from suppliers based in the United States and Asia. Jordan also imports from Asia and manufactures in the United States. It has manufacturing facilities in Monticello, Ind., Yuma, Ariz., Ho Chi Minh City, Vietnam, and mainland China.

Taiwanese nationals nabbed for Indian among 2 held with 5.800 kg gold in Jessore smuggling of stimulant drugs DHAKA

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TAIPEI

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s a part of a joint investigation, Kanagawa Prefectural Police and the Kanto Narcotics Control Department have arrested two male Taiwanese nationals over the smuggling of nearly 40 kilograms of stimulant drugs into Japan via ship earlier this year. The suspects, aged aged 27 and 29, have been accused of smuggling 36.7 kilograms of kakuseizai, or stimulant drugs via a freighter from Malaysia that arrived at the Oi Terminal in Tokyo’s Shinagawa Ward on January 18. Tokyo Customs ofKicial discovered the drugs, with a street value of 2.4 billion yen, inside 22 bags encased in metal inside a wooden crate, which was marked “machine tools.” The suspects deny the allegations, telling police that they did

Afghan power import from Uzbekistan set to rise

zbekistanis all poised to launch work on a major project that will boost power exports to energy-deficient Afghanistan by 70 percent. Construction of the Afghan section of the 260-kilometer transmission line between Uzbekistan€™s Surkhan region and Pul-iKhumri, the capital of Baghlan province, will start in June. The Asian Development Bank has pledged $70 million for the project, which is expected to cost $150 million. Uzbekistan will chip in with $32 million, according to Eurasianet. Uzbek energy Chief Executive Ulugbek Mustafayev as quoted as saying the transmission line would help Tashkent export up to 24 million kilowatt hours to Afghanistan daily. –CB Report

not know that the contraband was inside the crate, according to police. Meanwhile, Two Taiwanese nationals have been arrested in Japan for allegedly smuggling narcotics into the country with a street value of close to 2.4 billion yen (USD$22.86 million), according to Japanese and Taiwanese. According to the Asahi Shimbun,

the two Taiwanese suspects are 29year-old Feng Kuan-chieh and 27year-old Wu Shang-huaand they were arrested by the KantoShinetsu Regional Bureau of Health and Welfare’s Narcotics Control Department. The duo allegedly divided the narcotics into 22 separate packages and hid them inside two machines in Malaysia.

French deficit below 3% of GDP in first in a decade

rance’s public deficit shrank to a better-than-expected 2.6 percent of GDP last year, the first time it has fallen below the EU’s 3 percent limit in a decade, the National Institute of Statistics and Economic Studies (INSEE) said yesterday. The result, better than the government’s 2.9 percent target, would be good news for French President Emmanuel Macron, who

made respecting EU budget rules after years of delays a cornerstone of his aim to restore French fiscal credibility among EU peers. Shortly after he was elected in May last year, Macron took belttightening measures, including cuts to a popular housing allowance, to make sure the budget deficit would not overshoot the 3 percent limit, costing him precious points in his popularity rating. –CB Report

n separate incidents, members of Border Guard Bangladesh (BGB) arrested two people, including an Indian national, and recovered 5.800 kgs of gold in Sharsha upazila of Jessore. The BGB men arrested the Indian citizen along with 32 gold bars weighing 3.400 kg from bordering Shikarpur. The arrestee was identiKied a Mithu Dafadar, 30, son of Hazrat Dafadar of North 24 Parganas district in West Bengal. Tipped off, a team of BGB-49 Battalion conducted a drive at Narikelbaria around 10am and arrested the Indian national along with the gold worth Tk 1.46 crore, said Major Nazrul Islam, acting commanding ofKicer of the paramilitary force battalion. Another BGB team arrested Abdur Razzak, 35, son of Ataur Rahman of

Putkhali village, along with 24 gold bars weighing 2.400 kgs and worth Tk 1 crore, from the village in the afternoon, said Lt Col Tariqul Hakim, commanding ofKicer of BGB-21 Battalion. Meanwhile, The National Economic Council Executive Committee (Ecnec) approved a project to construct some 317 kilometres “border roads” on hilly frontiers with India and Myanmar along Bangladesh’s southeastern hills with a key objective of tightening border security. BrieKing newsmen after the meeting with Prime Minister Sheikh Hasina in the chair, planning minister AHM Mustafa Kamal said the construction of the “border roads” in that particular region appeared crucial because of its susceptibility to weapon and drug smuggling and human trafKicking. He said the “border roads” on the rugged hilly frontiers would enable Border Guard Bangladesh (BGB) and other security forces to enforce a tightened vigil and help expansion of trade and commerce in the Southeast Asia and tourism facilities in the hilly areas.

Switzerland urged to do more to fight group of mostly rich, industrialized countries said that Switzerland should do more to prosecute companies and apply tougher penalties for bribery. The Organization for Economic Cooperation and Development also praised the Swiss Attorney General’s ofKice for expanding the number of cases it’s investigating, pointing to a nearly six-fold increase in money laundering and bribery probes from 2011 to 2016. The Paris-based group, which counts Switzerland among its 35 member states, issued Kindings from a year-long review of the Alpine country that has long

been associated with shady Kinancial transactions and as a haven for clandestine deal-making. The OECD, among other things, urged authorities in Switzerland to improve protections for whistleblowers, reform its rules about legal assistance with other countries and ensure bribery sanctions are “effective, proportionate and dissuasive.” Mark Branson, director of the Swiss financial watchdog Finma, told The Associated Press that his agency has “made it extremely clear that we have a very low tolerance for major money-laundering issues.”–CB Report

Iraq’s oil exports from southern ports 3.45 million

BAGHDAD

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raq exported 3.453 million barrels per day (bpd) of crude oil from its southern ports in March, slightly above the February average, the oil ministry said. Iraq’s exports from the ports, managed by the central government in Baghdad, aver-

aged 3.426 million bpd in February, down from 3.49 million bpd in January. The semi-autonomous Kurdistan region exports about 300,000 bpd of crude from northern Iraq through a pipeline across Turkey. There were no exports in March from the Kirkuk Kields, located in northern Iraq but under the control of Baghdad, the oil ministry said in a statement. Kirkuk oil exports

stopped in October, when Iraqi government troops backed by Shi’ite paramilitary forces dislodged Kurdish Kighters from the region. Meanwhile, Iraq is reportedly ramping up efforts to expand its capacity to pump and export oil through building a processing facility that will double output at the Majnoon Kield to 450,000 bpd. Ihsan Abdul Jabbar, the director-

general of state-run Basra Oil Company, told Bloomberg that Iraq is seeking bids from six companies for the $4-billion project to inject seawater into its southern oil Kields. The country has already received bids from Kive companies interested in building the processing facility, he said. He added that Iraq, secondbiggest producer in the Organization of Petroleum Exporting Countries.

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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.

Saturday, April 7, 2018

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Peshawar Customs arrests four accused car smugglers from Khyber Agency PESHAWAR IRFAN BAHADUR

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he Customs AntiSmuggling Unit Peshawar has taken into possession a Non-Duty-Paid vehicle and apprehended four accused persons who were involved in the smuggling of NDP car from Khyber Agency into Punjab. The Non-Duty-Paid (NDP) vehicle, bearing registration No: BC4387, was impounded when four accused smugglers named Adbur Rehman, Baghicha Gull, Baz Mohammad and Zahid Gull were trying to smuggle the said car into Pakistan by crossing the border. The arrested persons also offered the customs ofKicials bribe in return to release their vehicle. But the honest ofKicials refused to accommodate their wrongdoing and arrested them on the spot. The Non-DutyPaid (NDP) vehicle was taken into possession at Badabir area in Peshawar on Thursday when the Customs Anti-Smuggling Unit was performing its routine duty there. After an initial inquiry from the culprits, the accused people have been booked according to the Customs Act-1969.

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 20182019 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-Kilers, 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, government 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 per-

Published by M S Raza Oﬀ# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by Dhoom Printing Building No RY/A, 11/6,11/7, Mashoor Mahal,oﬀ I.I. Chundrigar Road, Karachi

cent 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. The audited Kinancial statements of Islamic Banks and Islamic Windows of conventional banks contain a separate disclosure for Islamic Banking business, including a profits and loss statement. The requirement of separate auditors’ certiKicate for the purposes of rule 3(2) of Seventh Schedule has no relevance. If this is removed, it would save unnecessary cost and burden on the banks.