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Karachi, Sat August 5, 2017
KARACHI
AFTAB CHANNA
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he Collectorate of Customs, Preventive Karachi, will receive two patrolling boats within a few months that would help further enhance monitoring and enforcement activities in its territorial waters, said Collector Preven-
tive Dr Saifuddin Junejo. In an exclusive interview with Customs Today, the collector said that the patrolling boats would cost Rs 290 million and the boats would be delivered in a few months. Karachi Shipyard Engineering Works will deliver the boats to the customs. The Collector Preventive invited bids in the recent past in which the Karachi Ship-
Vol 2, Issue No. 182
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yard Engineering Works had been qualified and hence the tender was awarded to it. “The plan to procure patrolling boats was initiated last year, but it could not be materialized due to some technical issues and the lapse of funds. However, this time, the plan would get on as the boats would be handed over to us within six months,” Collector Junejo added.
Multan Customs collects Rs4b revenue during July FY2017-18
ASO into three squads enhancing its efficiency day by day: Ansir
‘Work on Electronic Data Interchange between Pak & China completed’
US Customs & Border Patrol seizes $5.6 million in Crystal Meth
Multan Customs detects tax evasion of Rs32.05m by Gulistan Textile Mills Ltd
The Model Customs Collectorate Multan has generated Rs4b revenue | See pAge 01 |
ASO has been divided into three squads which are working round-the-clock | See pAge 02 |
ZahidKhokharhasdisclosedthataprojectof Electronic Data Interchange between Pak | See pAge 05 |
US Customs & Border Patrol agents made the bust of the year at the I-35 | See pAge 07 |
The Customs Collectorate has detected tax evasion of Rs32.05 million | See pAge 08 |
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FBR surpasses July target with 22% growth, collect Rs200b Saturday, August 5, 2017
National
ISLAMABAD: The Federal Board of Revenue (FBR) surpassed revenue collection target for the month of July with 22 per cent growth and collected Rs200 billion. The Board collected Rs164 billion in the same month last year. According to FBR spokesperson Dr Muhammad Iqbal, the revenue collected was the provisional target for July. “We are expecting that few more billions will be received when the revenue collection figures are finalised next week,” he added.
ASo into three squads enhancing its efficiency day by day: Ansir
KARACHI
ISLAMABAD
m B rANA
TAriQ DerYA
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he Sindh High Court (SHC) has directed customs department to file para wise comments on a constitutional petition filed by M/s Karachi Corporation, seeking release of their consignment of hydrocarbon solvents (petroleum distillate) seized by the department. A two-member bench, headed by Justice Munib Akhtar, was hearing the petition. During the hearing, counsel for the petitioner stated that in the normal course of business, the petitioner purchased 4775.661 MT of mixed hydrocarbon petroleum distillate (hydrocarbon solvent RIK-350) from M/s Alchemist Energy Trading, DMC UAE, and when consignment arrived at Karachi port, the petitioner filed goods declaration on May 10, 2017 at the rate of $390 per MT. According to the counsel, instead of clearing goods, the respondent disagreed with the declaration, disregarded the laboratory report and sought to assess the goods as solvent oil noncomposite. He argued that numerous identical consignments of various other importers are being cleared, however, petitioner is being discriminated and denied clearance of goods at the instance of its competitors.
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he Anti-Smuggling Organization Islamabad (ASO) has been divided into three squads which are working roundthe-clock in three different shifts (Shift-A, Shift-B and Shift-C). Due to this new administrative measure, the performance of the ASO is increasing day by day. The ASO Islamabad seized smuggled goods and NDP vehicles worth Rs27.00million during 15th of July to 21st of July Financial Year FY2017-18. Currently, the ASO Islamabad confiscated as much smuggled goods in a week as were seized during the corresponding period in the whole month. This was stated by Deputy Collector ASO Ansir Anees while giving an exclusive interview to Customs Today. She said she had recomposed the ASO squad in three shifts under the supervision of senior superintendents. The Shift-A is headed by Superintendent Rana Shakeel, Shift-B is working under Superintendent Nasir Barlas and Shift-C is working under the supervision of Arif Dar. After the formation of three different shifts, now staff of the ASO can perform its duties without workload and get proper rest after duty hours. She said that, during 15th to 21st of July FY17-18, the ASO Islamabad impounded goods
karachi Corp moves SHC, seeks release of hydrocarbon solvents
and vehicles valued at Rs27.00million. During said period, the ASO confiscated 954 kilogram of foreign origin fabric, 24,264 kilogram of food grains, 999 kilogram of tea, 30 number of tyres, 987 number of auto parts, 42 number of ally rims, 4,659 number of electronic goods and many other miscellaneous smuggled goods. She told that, during 1st to 20th of July FY16-17, the ASO showed satisfactory performance by confiscating a huge quantity of smuggled goods and offending vehicles (Vehicles used for carrying smuggle
goods). During said period, the ASO impounded two Non-Duty-Paid (NDP) vehicles, 12 offending vehicles, 1,942 kilogram of foreign origin fabric, 24,264 kilogram of food grains, 1,824 kilogram of tea, 123 tyres and tubes, 987 auto parts, 42 ally rims, 50 cartons of fake foreign origin cigarettes, 4,665 electronic goods and many other foreign origin smuggled goods worth Rs39.121million. The Deputy Collector ASO Islamabad added that, during corresponding financial year, the performance has also been successful. The performance of ASO of
Model Customs Collectorate Islamabad was quite satisfactory during FY2016-17 as compared to the corresponding Financial Year 2015-16. According to further details given by her during Financial Year 201617, the ASO Islamabad impounded 144 offending vehicles valued at Rs153.200million whereas it did 156 offending vehicles worth Rs141.300million. During FY201617, the ASO Islamabad took into possession 86 NDP vehicles valued at Rs157.106million while it impounded 28 NDP vehicles during FY15-16 worth Rs60.163million.
provisional clearance of LeD lighting products stopped
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KARACHI
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he Federal Board of Revenue (FBR) has declined the proposed provisional clearance of LED lighting products. This was revealed when Appraisement East Collector Ashad Jawwad advised Appraisement West and Port Qasim to stop this practice with immediate effect and securities deposited during the in-
terim period may be encashed accordingly. LED/SMD/LVD bulbs and tube lights are exempt from customs duty and sales tax under Fifth Schedule to Customs Act, 1969 and 6th Schedule to the Sales Tax Act, 1990, respectively. Since these lights are also mentioned as locally manufactured under CGO 02/2017, the benefit of said schedules is not being allowed to these products in terms of the conditions thereof. The importers of these products approached the Engineering Devel-
opment Board (EDB), thereby EDB recommended provisional release of LED lights imported by two importers, which were forwarded by the Board to clearance collectorate. Subsequently, EDB requested the Board to allow release of imported LED lighting products against securities till the final decision by Alternate Energy Development and (AEDB). The AEDB also recommended provisional clearance of these products against securities till decision of ECC.
Collector Ashad Jawwad was of the view, the Board may take-up the matter of issuance of relief to individual importers on case to case basis by the EDB, as it creates distortion and rent seeking, hurting the normal business flow of this highdemand item. Allowing individual relief also does not merit in this case where the issue of local manufacturing is identical for all importers of this item and there is no major difference in the LED lights imported by different importers. Be-
sides such provisional relief to selected individuals also result in undue enrichment of these individuals at the cost of other importers and consumers. Since both the EDB and AEDB have recommended for provisional clearance of these items against securities and a large number of consignments are pending clearance at different ports of Karachi, incurring huge demurrage costs to the importers, the Collectorates falling within the jurisdiction of Appraisement (South).
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ISLAMABAD
m FAiZAN
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ember Customs, Federal Board of Revenue, Zahid Khokhar has disclosed that a project of Electronic Data Interchange between Pakistan and China has been completed and the system is ready to be launched. There is no delay from our side. Pakistan is waiting for a green signal from China. We are also working on Electronic Data Interchange Project with UAE and Afghanistan but this project will take some time. This was stated by Member Customs Zahid Khokhar while giving an interview to Customs Today. He remarked, “I have appointed honest and staunch Customs Officers in all the field formations with this direction that eradicate the menace of corruption and facilitate the importers and exporters according to rules and regulations.” He told CT that, during last Financial Year (201617), Customs has showed marvelous performance and achieved the customs duty collection target with 23 percent growth and hoped that the department will achieve the target of current financial year too. Pakistan Customs has collected Rs496billion record revenue in Financial Year 2016-17
against the set revenue target of Rs461billion. He said “We formulated a strategy for sharing the burden of Karachi ports with the dry ports which were established in Punjab and other provinces so that the burden of containers could be distributed. Because there is a lot of burden of imports at all ports of
as toms h s u C n a cord pakist ion re l l i b 6 49 ear ted rs ncial Y collec a n i F ue in e set reven nst th i a g a 17 of 2016target e u n e rev billion rs461
Karachi therefore customs officers need sufficient time to check and examine the containers which is not possible in short time.” He said the Federal Board of Revenue’s burden sharing project has been failed by the Punjab government as it levied Rs0.9 percent infrastructure development cess in the current financial year’s budget (2017-18) on the ‘goods manufactured, produced or consumed in the province, goods imported into or exported out of the province’. The tax has directly hit the cost of goods, he stressed and added, the cess is being received at a fixed rate of 0.90pc of the total value of the goods as assessed for the Customs purpose which will be used for maintenance, development and improvement of the infrastructure in the province. Now importers are giving priority to Karachi ports for receiving their containers there because the cost of container has increased at dry ports, he maintained. In response to a question, he said all the valuation rulings and their classifications are available on FBR website for importers when importers log in on the FBR then automatically the FBR system evaluates the goods. He said Pakistan Customs has improved with the passage of time and “we are ready to meet the future challenges.”
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Founder & Chairman Zulfiqar Ali Editor rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
eDiToriAL
Latest imF review
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n its latest critical review of the economy, the International Monetary Fund has assessed the gross external financing requirements of Pakistan at $16.2 billion for the current fiscal year. However, the review also indicates external vulnerabilities and fundamental contradictions in the external sectors as the economy is not only facing rising current account deficits, but also pressure on the foreign currency reserves. The donor agency has favoured this nation by revealing the facts and figures about the nature of external debts which have reached $87.1 billion. This belies the fund’s own optimistic projections of the country’s economy as it admits the challenges of external vulnerabilities, widening current account deficits and rising medium-term external repayment obligations. The government is claiming the credit of a stereotype performance by accepting external financing from various donor agencies. The life of expatriate Pakistanis in Middle East is going from bad to worse, lowering the volume of their remittances, imports are burdening the current account situation and exports failed to be picked up. Now the agency wants the government to withdraw subsidies on electricity and other utility services and it is yet to be seen how it will respond and manage the financial affairs. According to experts, the gross external financing requirements could increase to $19.7 billion during the coming years but many hard facts could be concealed from the public to keep the inflow of foreign investments unhindered. It is also assumed that the current account deficit will reach $10.1 billion and external debt payments will be $6.2 billion during the current fiscal year. The government figures for the last fiscal year put the deficit at $11.5 billion. However, the government has projected the current account deficit at $9 billion, but experts put the real figures close to $13.5 billion for the fiscal year 2017-18. Pakistan’s trade deficit remained a record $32.6 billion during the fiscal year 2016-17. Though the prime minister had announced an export package of Rs 180 billion, the exports are expected to decline further while imports will record a significant growth in coming years. Unless the government generates money through its own resources, it will be difficult to boost the national economy by depending on foreign loans and grants.
economy in political mess T
LAHORE
Dr AFTAB AFZAL
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he political atmosphere of the country is charged. The government and the opposition parties are trying to settle scores in courts, roads and elsewhere. The biggest casualty of the political showdown is the economy. It appears the political elite in cahoots with hidden hands is bent upon spoiling the peaceful atmosphere of the country whether it is law and order or the economic stability. The countries of the world are making progress with leaps and bounds whereas politicians in Pakistan are sparring with one another
for political gains. Another tug of war is going on within the leaders of several political parties and this has created a worst scenario for the business community. When political elite fights for their vested interested, it paves the way for unscrupulous elements to carry out their nefarious activities scot-free. The fact of the matter is that no one has the time to consider national interests and no one will be interested in investing in Pakistan in this situation. Political instability not only affects the GDP growth, but also living standard of the people and it sends wrong signals to the world community. The current political mess has
shacked the whole economic environment of the country, including the Pakistan stock exchange which has lost 2,000 points in a few days. Earlier, the stock exchange was showing better performance than China and India with market capitalisation of Rs 7.2 trillion, but lost over Rs 2 trillion in few days of the conflict. The foreign direct investment has also declined from $114 million to $92 million in one month. This is the dilemma of this country that whenever the economy reaches a takeoff position, something unusual happens and every gain is lost. The current political chaos clearly points out that the biggest problem of
the country is not corruption, energy crisis, mismanagement or terrorism but the mindset of the political elite. Most of the individuals of the political elite want to misuse national wealth for vested interests without any tinge of conscience or shame and this is the root cause of every problem. Unless the elite class, which has the money and resources, changes its mindset and comes out of its closet, the dream of prosper, progressive and developed nation would never come true. The programme like Vision 2025 will rendered useless in this situation and export package of Rs 180 billion will also end in smoke.
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HMRC confirms new regional tax centre in Belfast Saturday August 5, 2017
World
LONDON: The government’s HM Revenue and Customs office has formally signed an agreement with Orby Investment Ltd to lease Erskine House on Belfast’s Chichester Street for 25 years – as revealed in the Irish News in March. The taxman will be taking an estimated 104,220 sq ft of office space, eventually accommodating around 1,600 full-time equivalent employees, the first of whom are expected to move in from late 2019. The new eight- storey office development will house retail units at ground level and HMRC will take the other seven floors of the building, which will bring the highest standards of office accommodation ever seen in Belfast.
uS Customs & Border patrol South Africa’s trade surplus rises to 10.67b seizes $5.6m in Crystal meth JOHANNESBURG
LAREDO
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S Customs & Border Patrol agents made the bust of the year at the I-35 Border Patrol Checkpoint on Interstate 35,
Brazil to cut ethanol tax by 8.55 centavos per liter he Brazilian government decided on Friday to reduce a federal tax on ethanol known as PIS/Cofins by 8.55 centavos per liter, according to a source with direct knowledge of the matter. The government increased PIS/Cofins on July for gasoline, diesel and ethanol in a measure to increase revenues and try to cut a large fiscal deficit. But the decision on Friday, which should be officially announced as soon as Monday, refers only to ethanol, the source said. The increases announced last week for gasoline and diesel will be maintained, which will slightly increase the price advantage of the biofuel at the pump compared to gasoline. Brazil’s Finance Ministry declined to comment. The government decided to change the federal tax on ethanol after producers complained that the initial hike last week was illegal, saying the final levy should not exceed 9.25 percent of the average retail price. –CB Report
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about 25 miles north of Laredo. Agents encountered an white 2003 Dodge Durango and while an agent was questioning the driver about his immigration status, a Border Patrol canine alerted agents to the presence of hidden passengers or narcotics and the SUV was sent for further inspection. During the secondary search of
the vehicle, agents found three metal cylinders which contained crystal methamphetamine, weighing in at over 175 pounds, and having an estimated street value of $5.6 million. The driver, a United States Citizen was arrested and processed. Meanwhile, A plethora of fake Power Rangers, en route from China to North Carolina, were seized last month in Charleston by U.S. Customs and Border Protection. The action figures from the longrunning children’s action series were counterfeits, created without the permission of the rights-holder Saban Brands, according to a CBP press release. They were part of a seizure of $121,442 worth of fake children’s toys that arrived in Charleston in late June. Along with the Power Rangers, CBP also seized items with trademarks and copyrights to Cartoon Network, Apple and Danjaq, the rightsholder for “James Bond” characters and materials. The counterfeit toys were part of a larger shipment, which constituted 284 cartons of toys.
China June services trade deficit widens as Chinese spend abroad
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hina’s June services trade deficit rose to the highest since at least the end of 2013 as Chinese spent more abroad, data from the foreign exchange regulator showed on Monday. China’s trade deficit in services was $29.5 billion (22.49 billion pounds) in June, up from $22.5 billion in May, the State Administration of Foreign Exchange (SAFE) said. June’s deficit was largely due to a $25.9 billion gulf in spending
between foreign tourists and the Chinese, who splurge more abroad than visitors in China. For the JanuaryJune period, China’s services trade deficit stood at $130.9 billion, higher than the $109.0 billion in the first half last year, according to SAFE data. The deficit in tourism spending for June was also the highest since at least the end of 2013 and was an increase of almost $8.2 billion from May’s shortfall. –CB Report
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outh Africa’s trade surplus rose to 10.67 billion rand ($813 million) in June from a revised 7.22 billion rand surplus in May, data from the revenue agency showed. Exports fell 0.6 percent to 102.14 billion rand on a month-onmonth basis in June, while imports were down 4.2 percent to 91.47 billion rand, the South African Revenue Service said in a statement. Meanwhile, South Africa’s air transport sector reportedly supports around 490,000 jobs, including tourism-related employment, and contributes 3.5% (US$12 million) to the country’s gross domestic product. These were some of the findings highlighted in a recent study entitled ‘The Importance of Air Transport to South Africa’. The study was conducted by Oxford Eco-
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nomics on behalf of the International Air Transport Association (IATA). Muhammad Ali Albakri, IATA’s regional vice president for the Middle East and Africa said the study confirmed the air transport sector played a vital role in the country’s economy as it facilitated more than US$10 billion in exports, around US$140 billion in foreign direct investment and around US$9.2 billion in inbound leisure and business tourism for South Africa. “With the country now in a recession it’s time to re-double efforts to promote South Africa as a destination for business, trade and tourism,” he said. While carrying out the study, experts in the industry were surveyed. Some from the World Economic Forum said South Africa’s transport infrastructure quality score places the country first out of 37 African countries surveyed and 48th globally. The country also ranked 19th out of 37 African countries for visa openness and ranked 17th out of 37 for cost competitiveness in the air transport industry.
Hachette uk sales grow 10.2% in H1 achette UK has recorded a sales uplift of 10.2% for the first half of the year, boosted by strong sales in its adult trade arm and Hodder Education. Lagardere, Hachette UK’s parent company, said the likefor-like sales surge in the UK had been led by Adult Trade titles such as John Grisham’s Camino Island and Clare Mackintosh’s I See You. Activity was also lifted by an additional billing week in the period, it said. According to Hachette UK, June was a particuarly strong month, both in trade and in education. Hodder Education outperformed the market in this month with sales in its Primary division up 56%,
particuarly in assessment, English and reading, while Secondary sales were also up 25% in June against a market that was down overall, enjoyng particular success in the Humanities and Social Sciences. With Hachette UK’s sales “well over budget” and “considerably ahead” of the same period last year in sterling terms, Hely Hutchinson called the result “a great foundation for the second half of the year”. However, he warned he expected sales at the end of 2017 to be lower than in 2016 after the storming success of Little, Brown’s Harry Potter publishing which contributed to a record-breaking 2016. –CB Report
Saudi unemployment rate increases by over 1%
O RIYADH
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fficial data show that Saudi Arabia’s unemployment rate has increased by over one percentage point on a year-on-year basis, as the country continues to suffer economically from a prolonged war on Yemen and low oil prices.
The Saudi jobless rate for the first quarter of 2017 stood at 12.7 percent, official data showed on Sunday, marking a continuing upward trend in unemployment. The total number of unemployed Saudis in the first three months of the current year was 906,552. That number is more than a full percentage point higher than the Saudi unemployment rate registered in the first
quarter of 2016. Back then, the thenDeputy Crown Prince Mohammed bin Salman, who is in charge of the economy, unveiled an economic plan the so-called Vision 2030 that he touted as an assured way of transforming the country economically by the year 2030. The plan, he said, was aimed at ending Saudi Arabia’s “addiction” to oil, and it envisaged raising non-oil revenues from 163.5
billion riyals (43.6 billion dollars) in 2015 to 1 trillion riyals (267 billion dollars) by 2030. Saudi Arabia is the world’s top oil exporter and has long relied on the abundant source of revenue to push political agendas as well. The economic state of the kingdom But the unemployment data released on Sunday seemed to strengthen initial speculation that the plan was too ambitious.
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Sukkur Customs foils bid to smuggle 120 mobile phones SUKKUR: Customs officials have foiled a bid to smuggle 120 non-Customs duty paid cell phones and arrested two accused – Sadaqat Ali and Tooto Khan. The accused were nabbed during snap checking on the Dilmurad-Kashmore National Highway in the limits of Dilawar Police Station, Customs Inspector Aziz Ahmed Katper informed mediamen. The cell phones were recovered from a Kashmore Town bound car (ALH-122) coming from Quetta.
Saturday, August 5, 2017
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multan Customs detects tax evasion of rs32.05m by gulistan Textile mills Ltd MULTAN imrAN ALi
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he Customs Collectorate has detected tax evasion of Rs32.05 million against M/s Gulistan Textile Mills Limited. According to details, M/s Gulistan Textile Mills Limited Ahmad Pur East Road Bahawalpur has imported 1239754 kilograms of polyester yarn worth Rs195.813 million in eight import consignments which were cleared from Multan Dry Port under the approval of DTRE. Customs conducted stock taking of imported goods lying unconsumed in the DTRE premises after the expiry period of DTRE. Multan Customs found that DTRE user has extended the utilization period of imported goods under DTRE without approval of competent authority by depositing amount of Rs12.49 million as duty and taxes on concessionary rates against 7 GDs out of eight GDs by availing benefit of SRO 494(i)/2013. M/s Gulistan Textile Mills was also failed to satisfy Customs DTRE Cell on their examination, because there was not any stock available and it has been observed that all the imported goods against the GD No.
DTRE -2000484 was misused without intimation to the competent authority. Therefore default surcharge, additional duty and taxes will also be recovered from the company. But M/s Gulistan Textile Mills
Ltd. DTRE user paid partial amount without any permission from regulatory authority by availing benefits of exemption from leviable surcharge which fall out of the ambit and scope of SRO 494(i)/2013. The
DTRE user has not submitted any reconciliation statement about the import of polyester yarn to Multan Customs Collectorate in terms of rule 307-D of SRO 4509(I)/2001. In this way the DTRE user contravened
the provisions of section 19 & 219 of the Customs Act 1969 with DTRE rule,306, 307-A (I),307–E of SRO 450(I)/2001 punishable under clause-I &10 (A) of Section 156(I) of the Customs act,1969.
FBr clarifies concessions under Sro 1125 KARACHI
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he Federal Board of Revenue (FBR) has clarified that all the items provided either in Table-I or Table-II or both the tables of SRO 1125(I)/2011 are eligible for the reduced/concessional rates. In response to a query forwarded by Appraisement West Collector Shahnaz Maqbool, FBR
clarified that import of finished goods of five sectors covered by SRO 1125(I)/2011 are chargeable to sales tax of 17 percent along with reduced value addition tax of 2.0 percent. Shahnaz Maqbool had approached FBR seeking clarification regarding non-availability of concessionary/reduced rate of value addition tax under SRO 1125(I)/2011 for the reason that finished articles of leather and artificial leather, textile and textile made-ups have been excluded from the purview of the SRO under Table-1 have been ex-
amined. FBR noted that under S. No. 4 of Table-11 of SRO 1125(1)12011, import of finished goods of five export oriented sectors covered by SRO 1125(1)/2011 and ready to use by general public. are chargeable to sales tax 17 percent along with 2.0 percent value addition tax and the position has remained unchanged after amendments introduced. It has been learnt that commercial importers particularly of fabric are fast moving towards registration as manufacturing concerns. Sources said they get rented
property and machinery and then apply for registration as manufacturing units. Inland Revenue officials are said to be issuing approval to these fake manufacturing units against bribe. These unscrupulous elements after getting registered as manufacturer vacate the rented property and the machinery is then used for registration of another fake manufacturing company. All this game is played to avail exemptions and benefits available for manufacturing concerns. FBR should adopt a policy to track the imports under SRO
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
1125(I)/2011 and new importers registered as manufacturing units should not be allowed the exemptions for at least a couple of months or until these importers file their returns. Shahnaz Maqbool took a stand to avoid losses to national exchequer but it seems that the cartel of unscrupulous imports is more influential. A senior officer said these elements are well known, but they had established well their links everywhere including the judiciary and thus their dirty business was flourishing.