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KARACHI

MUBEEN HUSSAIN

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irectorate General of Customs Valuation has started special exercise to control undervaluation of goods imported from India.

Talking to Customs Today, Director General Syed Tanveer Ahmed said that the department has started a special exercise to cope with consignments of Indian goods being imported through Dubai. He said that on the complains of the sewing machines i n d u s t r y, the value of the ma-

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chines has been increased. The director general said that in the Qirst phase the survey of some forty Indian items has been completed successfully by the director of Customs Valuation, Lahore whereas the values of some goods have been Qixed while value of thirty items will be Qixed within a week. Ahmed said that a number of Indian goods are being imported through Dubai in the garb of Chinese goods thus Qlouting the import policy and also hurting the local industry causing loss of millions of rupees to country. Giving an example, he said that silk industry of Gujranwala, Karachi and Lahore which is on the verge of closure due to illegal import of Indian chiffon containers.

Customs collects Rs 281m duty till Nov 19: Collector Dr Arsalan Subuguteen

Collector Junejo calls on Air Marshall Arshad Malik in IDEAS-2016

Senator Mohammad Ishaq Dar chairs 2nd meeting of NFC

Anti-Smuggling Organisation impounds 4 non-duty vehicles

Collector Reza presides over meeting to review anti-smuggling measures

The Customs Collectorate has detected multiple cases of misuse of PCT heading | SEE pAgE 02 |

CustomsCollectoratePreventiveDrSaifuddin Junejo visited the 9th IDEAS-2016 | SEE pAgE 03 |

Ishaq Dar led the second meeting of the ninth NFC today in Islamabad | SEE pAgE 04 |

The Customs ASO impounded four nonduty paid vehicles worth millions of rupees | SEE pAgE 14 |

CollectorCustomsAhmedRazahaspresided over a meeting of the ASO Gujranwala | SEE pAgE 16 |

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Peshawar court gives drug smuggler life sentence Thursday, December 1, 2016

National

PESHAWAR: A special court for control of narcotics has convicted a person of smuggling narcotics and sentenced him to life imprisonment with a fine of Rs 200,000.

Judge Shahid Khan observed that the evidence on record was enough for conviction of the accused, Mohammad Shahid, and the prosecution had proved its case against the accused.

A special prosecutor of Anti-Narcotics Force, Sher Afgan Khattak, stated that the accused was travelling in a car when ANF personnel stopped him near Hayatabad Chowk on Jamrud Road.

customs collects rs 281m duty till Nov 19: collector Dr Arsalan Subuguteen

KARACHI

ISLAMABAD

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tArIQ DErYA

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on-statutory member of the National Finance Commission (NFC) from Sindh, Saleem Mandviwalla, has said that the provincial government will ask the federal government to restore excise duty on crude oil production. The Centre had revoked excise duty on crude oil production following the 18th amendment into the constitution. The Sindh government has also decided to urged the federal government to relegate the rights of sales tax on goods collection to the province. “After the 18th amendment, it (the duty) is a provincial subject and its collection should be handed over to the provinces,” Mandviwalla said in a statement. Currently, the federal government is already collecting excise duty on the gas well head price. Senator Mandviwalla said the province will also demand the rights of collection of sales tax on goods from the federal government. “Royalty on oil and gas should also be handed over to the provinces.” He also criticised the government on stopping the new NFC award. “The federal government has been delaying it for the last four years. It should call the meeting without any further delay,” he said.

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he Customs Collectorate has detected multiple cases of misuse of PCT heading 9914 (exemption by hospitals and medical institutes) by commercial importers. The collectorate is also strengthening controls of bonded warehouses, has conducted transparent public auctions and generated more then Rs 100 million. The collectorate also eliminated the trend of mobile phone smuggling through Islamabad airport and detected various seizure cases of heroin smuggling at International Mail OfQice (IMO).

This was stated by Collector Arslan Subuguteen in an exclusive interview with Customs Today. He said that the MCC distributed a huge amount among exporters as duty drawback and cleared all of pending refunds cases. Collector Arsalan said that Collectorate exceeded collection of customs duty (CD) target with Rs.281 millions up to 19th of November 2016-17 against the assigned target of Rs.276 million.

The collector said that of MCC showed outstanding performance during Qirst three weeks of November FY16-17, adding that during the above said period customs Collectorate collected Rs.734.8 millions against assigned target amounting to Rs.701.7 millions. He said that

Sindh to ask centre for restoration of excise duty on oil production

MCC surpasses revenue collection target, while on the other hand it has paid Rs.4.34 millions of refunds and rebates till 19th November, adding that he is optimistic that MCC will not only achieve its assigned target of November however it will exceed its overall assigned target for current month. He said that Dry Port Islamabad was assigned customs duty collection target for month of November 2016-17 amounting to

Rs.261 million which will deQinitely achieved by the end of month. He said that AFU assigned revenue collection target under the head of CD for month of November amounting Rs.200 million and it will also achieve the assigned target. In answer to another question he said that MCC Islamabad collected Rs.33.01 million surplus revenue under the head of customs duty during the month of October FY2016-17.

Collector Dr. Arslan Subugteen said during the month of October 201516 MCC collected Rs.378.57 million under the head of customs duty while it collected Rs 411.57 million during previous FY 2015-16. He said that Collectorate has assigned revenue collection target of CD for all stations of MCC i.e. Islamabad Dry Port (IDP), Air Freight Unit (AFU), car section, IMO for current Qinancial year amounting Rs.436 million.

Multan Intelligence seizes sulphuric acid worth rs6m C

MULTAN

IMrAN ALI

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ustoms Intelligence and Investigation Multan Range OfQice has seized foreign oigin sulphuric acid during an action.

According to details, Customs Field Intelligence Unit (FIU) of Sadiqabad has received credible information from their source that foreign origin chemicals will be transported through their way. Su-

perintendent Customs Intelligence and Investigation Multan Range OfQice has formed special team led by Senior Intelligence OfQicer Chaudhary Muhammad Muneer, Inspector Muhammad Umer and others for crackdown against alleged chemical consignment loaded on the container. Field Intelligence Unit of Sadiqabad region intercepted the loaded container near Kot Sabzal check post for examination. During the examination of the loaded container, Customs Field Intelligence

Unit of Sadiqabad found the loaded container with sulphuric acid a. The chemical were Qilled in 110 various plastic drums and all drums were Qilled almost 210 kilograms each.

The net weight of the sulphuric acid was almost 23100 kilogram in the course of their examination.

Customs Field Intelligence Unit of Sadiqabad has asked container driver Haji Muhammad Umer resident of Karachi to produce import documents of loaded chemicals in container for its legal possession.

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SHC directs parties to maintain status quo in Toyota Mark-X case KARACHI: The Sindh High Court (SHC) has directed the parties to maintain status quo on a petition filed by Muhammad Khan seeking release of his Toyota Mark-X car impounded by customs authorities on the charges of tax evasion. A two-member bench, comprising Justice Irfan Sadat Khan and Justice Muhammad Humayun Khan, was hearing the petition.

During the hearing, counsel for the respondents filed their para-wise comments, which were taken on record. The counsel for the petitioner sought time for filing a rejoinder, therefore, the court adjourned the hearing for December 14, 2014 and continued interim order in which court had directed both the parties to maintain the status quo.

kp Sugarcane Board asks centre to grant sales tax exemption on sugar

Thursday December 1, 2016

National

collector Junejo calls on Air Marshall Arshad Malik in IDEAS-2016

PESHAWAR

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he Khyber Pakhtunkhwa Sugarcane Control Board has asked the federal government to give sales tax exemption on sugar. The new-established board, in its maiden meeting, also urged the Centre to allow the province subsidy on export of sugar. The Khyber Pakhtunkhwa government has constituted the Provincial Sugarcane Control Board to tackle the issues concerning the important cash crop of the province. Secretary Food is the sugarcane commissioner and Director Food will be the Chairman of the Board. The director General Agriculture (Extension), director Industries, director Sugar Crop Research Institute and Registrar Cooperative Societies are its members.

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SEcp gives 2-year NtN exemption to small companies ISLAMABAD

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he Securities and Exchange Commission of Pakistan (SECP), through a circular, has given National Tax Number (NTN) exemption for a period of two years to all small companies. In this regard, the SECP has issued a circular (number 35 of 2016) after the promulgation of the Companies Ordinance, 2016 regarding exemption from NTN requirement under the Companies Ordinance, 2016. The SECP said that the Companies Ordinance, 2016 (“the Ordinance”) was promulgated on November 11, 2016. The provisions of section 153 (h) of the Ordinance provides that a person shall not be eligible for appointment as a director of a company, if he does not hold a National Tax Number as per the provisions of the Income Tax Ordinance, 2001.

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KARACHI

S r kHAN

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ollector of Customs Collectorate Preventive Dr Saifuddin Junejo visited the 9th International Defense Exhibition and seminar (IDEAS)-2016 at Expo Center. During the visit, the Collector Dr Saifuddin Junejo held a detailed meeting with Air Marshal-Pakistan Air Force (PAF) Arshad Malik at his chamber. Both the high ofQicers discussed the matters of mutual interests. The Collector Preventive informed the Air Marshall that the Pakistan Customs was determined to safeguard the coastline of the country. Air Marshall Arshad Malik informed the Collector Preventive that the Pakistan Air Force (PAF) will get JF-17 Thunder crafts from China in the Qirst quarters of the next year, adding that the PAF is also handing over 52-Mushaak aircrafts to Turkey. The Collector Preventive Dr Saifuddin Junejo appreciated the ongoing developments

by PAF and also expressed his best wishes to the Air Marshall Arshad Malik and Pakistan Air Force (PAF).

The Air Marshall further informed that the PAF would also inviting the foreigners for training in Pakistan Aeronautical Complex (PAC) adding that the countries including Saudia Arabia, Nigeria, Egypt, Oman and others have shown their interest in getting training from Aeronautical Complex. The Air Marshall further

said that the twin seater JF-Thunder would also include in the Qleet of Pakistan Air Force, adding that the working in this regard in underway.

“Introduction of latest technology in craft making would be done in near future in order to make the defense of the country more effective”, Air Marshall-PAF added. Meanwhile, The Collector Customs Collectorate Preventive Dr Saifuddin Junejo held a meeting of the Customs ofQicers of Jinnah International

the Air Marshall further informed that the pAf would also inviting the foreigners for training in pakistan Aeronautical complex (pAc) adding that the countries including Saudia Arabia, Nigeria, Egypt, oman and others have shown their interest in getting training from Aeronautical complex

customs values of frozen chicken revised

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KARACHI

wAQAr AHMED ANSArI

www.customsbulletin.com he Directorate General of Customs Valuation has revised the customs value of hilal chicken and Turkey meat (frozen) vide Valuation Ruling No 972/2016 under Section 25-A of the Customs Act, 1969. The customs values of hilal chicken & Turkey meat (frozen) had been determined earlier vide Valuation Ruling No. 757/2015 dated September 02, 2015. Numerous rep-

resentations have been received in the directorate to revise values keeping in view decreasing trends in international market. Accordingly to determine true value of hilal chicken & Turkey meat (frozen) in light of current prevailing prices in international market, an exercise to determine the customs values of subject goods was under taken by this Directorate General. A meeting was held on September 01, 2016, with all the stakeholders of subject goods and representatives of clear-

ance collectorate. This subject meeting was also attended by the representatives of Pakistan Poultry Association, manufacturer and importers of subject goods. The representatives of Pakistan Poultry Association contended that the instant goods are value added goods and are being exported on very higher values by the exporting countries. Moreover, the locally produced chicken prices are reasonably higher as compared to values determined by the Directorate of Customs Valuation.

Airport at his ofQice. The meeting was attended by Additional Collector Syed Asad Raza, Deputy Collector Ali Raza Sipra, Deputy Collector Amjad Leghari and others. During the meeting, the collector Preventive took brieQing regarding security arrangements at the arrival and departure lounges of the airport.

The Additional Collector Asad Raza briefed the Collector Dr Saifuddin Junejo that the security at arrival and departure is being enhanced.

customs hikes values of used goods by 14% he Federal Board of Revenue’s Directorate General of Customs Valuation has increased value of second-hand goods by 14 per cent. Customs Valuation Director General Syed Tanveer Ahmed, after amending the Valuation Ruling No.836/2016, fixed the values of secondhand items. The values of these items were fixed after M/s Amina Enterprises and others had approached the directorate general seeking revision.

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WB urges govt to restore bilateral trade with India ISALAMABAD: The World Bank has urged Pakistan to fully normalise trade relations with India to facilitate deep forms of trade integration as this step would allow Pakistan to benefit from New Delhi’s fast growth and promote complementarities, including value chain activities and investment potential.

This is one of the key recommendations of a technical note titled “Pakistan-unlocking private sector growth through increased trade and investment competitiveness” prepared by a World Bank team comprised of Rafay Khan of the Trade and Competitiveness, South Asia and Nadia Rocha of the Trade.

Thursday December 1, 2016

Business

Dar chairs 2nd meeting of Nfc ISLAMABAD

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he Federal Finance Minister Senator Mohammad Ishaq Dar led the second meeting of the ninth National Finance Commission (NFC) today in Islamabad.

Dr. Aisha Ghaus Pasha, (Finance Minister Punjab),Senator Saleem Mandviwala (Member NFC Sindh), Prof. Muhammad Ibrahim Khan (Member NFC KPK) and Dr. Kaiser Bengali (Member NFC Balochistan) took an interest in the meeting.

Fund Secretaries from the four territories additionally took part in the meeting. Government Finance Secretary, Chairman FBR and senior au-

rs 28m ‘water tax’ recovered MULTAN

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thorities of the Ministry of Finance additionally went to the meeting.

Chairman, NFC Senator Mohammad Ishaq Dar welcomed the participants and gave a brief overview on the structural and reform initiatives taken by the federal govern-

pakistan heading towards a severe wheat crisis: pEw

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he Irrigation Department has recovered Rs 28 million water tax (Abiana) from growers of Multan division during Rabbi-season 2015-16. According to the official sources, various teams had recovered Rs 4.5 million Abiana from Multan district, Rs 170,839 from Lodhran, Rs 16 million from Vehari and Rs 7.5 million from Pakpattan district during first three months of Rbbi-season from July 1 to Oct 31, 2016.

Similarly, Rs 859,724 water charges (Tawan) were also recovered from four districts including Rs 742,145 from Ldhran.

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ment during the last three years.He appreciated the consultations undertaken by the provinces and the federal government in a cordial atmosphere under the ambit of the National Finance Commission. On this occasion Minutes of the first

meeting of 9th NFC Award were adopted. The meetingalso considered and approved the Biannual Monitoring Report of the 7th NFC Award for the period January to June, 2016. Chairman NFC in consensus with representatives of provinces decided that the biannual implementation monitoring report of the 7th NFC Award will be placed before the parliament during the current week as per the constitutional requirement. The Commission received presentations from the four Working Groups which have been constituted to deliberate on specific areas and prepare recommendations for the 9th NFC Award: namely, Resource Mobilization at Federal and Provincial level (Punjab), Devolved verses Integrated Tax.

ISLAMABAD

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he Pakistan Economy Watch (PEW) said the country is heading towards an extreme wheat emergency and the administration will confront misfortunes of billions because of its strategy issues. Wheat stocks kept up by various government divisions had crossed to a disturbing level of Qive million tons because of a disappointment in fares in spite of rehashed endeavors which included

raising fare sponsorship commonly, said Dr Murtaza Mughal, PEW President. He said that wheat support price -doubled by the last government to win elections- had provided considerable incentive for wheat growers which resulted in heavy losses for the government. The support has also caused a shift in growers’ priorities away from other crops and has resulted in shortage of these crops, in addition to the current build-up in wheat stocks, he added. Dr. Murtaza Mughal said that the area under cultivation of wheat has reached a record high level, production continues to

climb, and there is no way to tackle surpluses. The federal and provincial government had announced a combined subsidy of $90 per tonne for exports of 1.2 million tonnes of wheat which failed as the prices in the international wheat market were almost half of the price of wheat in Pakistan.

This year the wheat prices in the international market have gone down which will put additional burden on the government, he said. Global stocks are already at record level which will grow further due to better crop making it difQicult for government to dispose of the growing stocks.

Meat export industry growing by 30%: official LAHORE

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he meat trade industry in Pakistan is developing at the rate of 30% and it can further be expanded through a superior handling process. This was expressed by head of Meat and Nutrition Department, University of Veterinary and Animal Sciences (UVAS) Dr Muhammad Hayat in on Sunday. He said that despite top beef exporting nation in the neighbourhood and big powers of global meat market as competitors, so far Pakistan has held its ground successfully in the regional market of Middle East.

However, he added, in order to enter the emerging market of China and Malaysia, meat sector of Pakistan needed to act more scientifically and technically. He said that in 2005, Pakistan’s meat exports were about US$29 million, while in 2015 it reached US$243.5 million figure.

He said that meat retail sector of the country has also changed its shape within the last decade and with increasing interest of consumers in high value hygienic meat primal cuts and meat products, more players are entering the retail sector.

However, with deficiency of technical skills and scientific methodologies, it would not be possible for the sector to progress smoothly.

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Export potential of fisheries sector of Sukkur highlighted KARACHI

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rade Development Authority of Pakistan’s sub regional ofQice (Sukkur) organised a seminar “Export potential of Fisheries from Sukkur region” in collaboration with State Bank of Pakistan- Sukkur the other day at SBP-BSC Sukkur ofQice.

The main purpose of seminar was to highlight the export potential of Qish-

eries sector of Sukkur region so as to enhance the exports from this region.

Sukkur region is the main hub for supply of fresh water Qish for domestic consumption in Pakistan. The seminar was attended by the Qish traders of Sukkur, Agriculture Extension department Sukkur, Livestock & Fisheries department Sukkur, Sukkur Chamber of Commerce & Industry, Larkana Chamber & other stakeholders. Mir Mohsin Bullo- Assistant Manager TDAP Sukkur delivered a

presentation in the seminar & provided detailed information to participants of seminar about export potential of freshwater Qish of Sukkur region. He further said that Sukkur region has the potential of being a major producer of freshwater Qish in Sindh and also boasts some of the Qinest varieties of freshwater Qish in Pakistan but it has a very small share in country’s export. Pakistan’s Qisheries major buyers are China, Thailand, Vietnam, Middle East, Republic

of Korea, Sri Lanka, Japan, etc and the major competitors are Bangladesh and India. The competition will increase even further as Iran is gearing up to start its Qish export and according to a report, it has already captured part of Pakistani Qish market. Pakistan can only achieve the greater share of international markets if it can follow international quality standards and that can only happen if Pakistan has better technology to process the

catch according to the global standards. In addition, the government is taking other steps to improve Qisheries sector, which include strengthening of extension services, introduction of new Qishing methodologies, increased production through aquaculture, development of value added products, enhancement of per capita consumption of Qish and upgradation of socio-economic conditions of the Qishermen’s community.

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ustoms Enforcement-South Chief Collector Muhammad Zahid Khokhar chaired a meeting to review performance of the Qield formations, including Model Customs Collectorate Exports, Port Qasim (Exports), Gwadar and Hyderabad.

During the meeting, the chief collector was given a detailed brieQing on performance by the authorities of the respective collectorates.

The collectors of Gwadar Customs and Hyderabad Customs informed the chief collectorthat the collectorates have taken effective measures in order to curb smuggling of contraband items in their regions.

The Hyderabad collector further added that strict policy and vigilance have been adopted by the customs ofQicers, adding that various nonduty paid vehicles have been impounded in the vicinity of the collectorate.

“Around 22 non-duty paid vehicles were impounded by the Hyderabad Customs during a crackdown against smugglers during last two months,” the collector added.

The collector of Gwadar informed that a declined has been observed in smuggling of contraband items and Iranian petrol and diesel had

been, adding that the customs ofQicials are vigilant to thwarting illegal smuggling of contraband items. Chief Collector Zahid Khokhar appreciated the performance of both collectorates and was of the view that revenue leakages should be plugged by taking more effective steps for foiling the smuggling of contraband items. Meanwhile, The Customs Collectorate Exports has Qinal-

ized the list of rebate claims, which has to pay to the different exporters.

According to details, the Collectorate after compiling a detailed list has submitted the same before the Collector Exports Muhammad Yaqoob Mako.

The sources informed Customs Today that the list containing the names of around 75 exporters whose rebate claims were being in pending since the year 2014-2015.

The sources further disclosed that billions of rupees rebate claims will be paid to exporters; adding that the Customs authorities are going to release those rebate claims by the start of next month i.e. December to the exporters phase wise. It is pertinent to mention here that the Collector Customs Collectorate Exports Yaqoob Mako had given the task to the officers of the Collectorate to comd e rm ar info pile a detailed list in connection d a n w i of g ved r r e o with preparing the rebate s t c b e ll no th e c o nd claims list. It is also necessary as bee a h s d m e d ite eclin n d to mention here that the Feda a b a t , n tr tha of con ad bee eral Finance Minister Ishaq h g l n i e l s g die re d a smug n Dar was already directed to res l a l a i o ffic n petr lease the rebate claims after oms o t s u Irania c l the ega compiling a detail list. ing ill g that

hwart addin items nt to t a l i band g a i r v t n o fc ling o smugg

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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

russia’s desire to join cpEc

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ccording to newspaper reports, a big chunk of the $46 billion Chinese investment will be implemented by next year which will give practical shape to the regional connectivity plan of the second largest economy of the world. It is also good omen that after Iran, Afghanistan and Turkmenistan, Russia is desiring to become part of the China Pakistan Economic Corridor to use the Gwadar port for its exports to the south eastern hemisphere of the globe. Undoubtedly the economic corridor is a game changer, a big connectivity plan and a strategic location. Russia does not want to keep aloof itself from reaping its dividends. It is a lesson for India, which is opposing the project for nonsensical reasons, to shun its policy of Pakistan bashing and become part of a regional economic zone. It will give India not only access to the Central Asia states beyond Afghanistan, but will also open up its borders with Pakistan and trade relations will lead to the resolution of the thorny issues between the two countries. Earlier during his visit to Turkmenistan, Prime Minister Nawaz Sharif said that various regional countries are willing to join the corridor and that half of the world will benefit from the project. The prime minister has also announced construction of railway tracks, roads and fiber-optics along with 1,680-kilometer-long TurkmenistanPakistan-Afghanistan-India gas pipeline project to enhance connectivity between south and Central Asia.The TAPI project will supply 400 billion cubic feet gas to the three member states in which Pakistan’s share will be three hundred billion feet of gas. But problem is on the west and east sides where Afghanistan and India have made an unholy alliance against Pakistan which is not only costing regional peace but also affecting the regional economies. If India can become part of the TAPI project there is no reason to keep itself away from the corridor project for its own benefit.

The Russian involvement in the corridor project will give legal, moral and geographical support to Pakistan’s points of view which wants South Asia as peaceful region. The progress on the project is going on in steady rate and will not only bring prosperity for Pakistan but also in the region. The initiative is part of Chinese government One Belt, One Road project which will revive trade across Central Asia and into Europe via a highly developed infrastructure of railways, ports and highways.

At cost of economy A

LAHORE

Dr AftAB AfZAL

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ccording to news reporters quoting the central bank of the country, the war on terror has cost the nation $118 billion.

The direct and indirect losses are equivalent to one third of the gross domestic product of the country which the economy incurred from 2002 to 2016. The decision to enter the war not only hampered economic growth, but also the social sector development. Meanwhile, Pakistan received only $14 billion under the head of Coalition Support Fund from the United States with an annual release of around $1 billion since 2002. The government has also been Qighting home-

grown insurgencies since 2004 which has severely damaged the image of the country in the international community. The war has not only brought immeasurable casualties, displacement and destruction, but also hampered economic and industrial activities and drove away foreign investment from the country. The participation in the war on terror on the behest of the United States has damaged the institutional structure and caused instability in every section of the economy. Terrorists are still striking every part of the country, and are sending wrong signals to the world about the soft image of Pakistan. The ofQicials of the International Monetary Fund have claimed that Islamabad has emerged successful from economic

crisis in the wake of the three-year extended facility programme, but experts cast doubt in it. The GDP of the country still hovers around four percent and over 60 percent of the population do not have access to even basic necessities of life and trying survive three dollars a day.

The powerful political and business elite still have many options to Qish in the trouble waters and exploit the situation to make money.

The poor are the losers at the end.

The years of energy crisis, imprudent economic policies and corruption have added insult to injury.

The political leadership has no troubleshooting faculty and it is allowing the time to pass until the next general elections. The foreign remittances sent by the expatriate Pakistanis are the only hope to

maintain foreign exchange reserves, but most of them are returning to the country due to recession in the Arab nations. The economy recorded 4.7 percent growth in 2015-2016 and inQlation was kept as low as 3.8 percent during the Qiscal year in question, but the growth is the lowest as compared to the other countries in the region. The new political order across the world, including exit of Britain from the European Union, presidential elections in the United States and rise of Hindu nationalist party to power in India has changed the dynamics of the regional and international affairs.

The government will have to make a new strategy not only to boost economy, but also Qind a constructive role in the international affairs.

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Australia to impose backpacker tax CANBERRA: Backpackers could be forced to pay tax when working in Australia under a new policy put forward by the Australian government. The “backpacker tax” could see holiday workers paying 15 per cent tax on the money they earn in the country.

The announcement comes after over a year of negotiations between government and minority parties with a compromise finally being reached at 15 per cent. The new figure is lower than the government’s original plan to tax holiday workers at 32.5 per cent. But the government backed down when the 32.5 per cent rate sparked outrage among tourism operators and farmers who feared the tax would put backpackers off visiting Australia. Around 600,000 travellers visit Australia each year, many of whom fund their travels by picking fruit or working on farms.

france keen to promote trade with pakistan ISLAMABAD

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ean Marc FENET, Head of the Regional Economic Department for India and South Asia of France has said that his country considered Pakistan a huge market for business and was keen to further promote bilateral trade and economic relations with it. He said France previously focused on China due to which South Asia was ignored, but now it was focusing on South Asia for business. He said Pakistan being a big market of this region was gaining more attention of France. He said this while addressing business community at Islamabad Chamber of Commerce and Industry (ICCI). He was accompanied

by Philippe FOUET, Head of the Economic Department, Embassy of France. Jean Marc FENET said that due to CPEC, France was taking more interest in Pakistan as this project was poised to create many new opportunities for business and in-

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vestment. He said business was the best way to promote bilateral relations between countries. He said France has latest technology and expertise and Pakistan could achieve good results for its economy by enhancing cooperation with it. He said he would try to visit Pakistan twice a year to identify new areas of mutual cooperation between the two countries.

Speaking about Brexit, he said UK was an entry point for EU; however, Brexit will affect more to UK instead of EU. He suggested that ICCI should take a delegation to France to explore new avenues of mutual collaboration. Speaking at the occasion, ICCI President Khalid Iqbal Malik said that Pak-France bilateral trade of € 1.1 billion in 2015 was not up to the real potential of both countries He said both countries have good potential to enhance cooperation in energy, agriculture, food processing, aviation, IT, automobile, engineering and other areas.

Thursday December 1, 2016

Chambers

LccI wants withdrawal of increase in valuation of decoration lights T

LAHORE

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he Lahore Chamber of Commerce and Industry (LCCI) has urged the Directorate General of Valuation to withdraw huge increase in valuation of decoration lights (rice lights). While talking to a delegation of Shahalam Market, led

by Talha Tayyab Butt and Shahrukh Jamal, the LCCI President Abdul Basit said that massive increase in valuation would not only be hitting the traders hard but also bound to affect the celebrations of Eid Milad-unNabi because these lights are used on this auspicious occasion at large scale. He said that Federal Finance Minister, Chairman Federal Board of Revenue and Directorate General of Valuation should take immediate notice of the matter that is adding to the worries of the traders. The LCCI Vice President Muhammad Nasir Hameed Khan was also present on the occasion.

The delegation members informed the LCCI ofQice-bearers said that a large number of containers loaded with decoration lights (rice lights) are standing at Lahore and

Karachi as traders are unable to get these containers cleared due to heavy increase in the valuation of decoration lights. They said that valuation rates on decoration lights have been increased to 4 dollar per kg from 1.3 dollar per kg. they said that traders have limited resources and cannot afford such a huge increase. They that if this new valuation ruling is not withdrawn then customs department would not be able to generate the revenue collected against the clearance of hundreds of decoration light con-

tainers per annum. LCCI President Abdul Basit said that Director General of Valuation should take the stakeholders on board and resolve the issue amicably. He said that huge increase in valuation will encourage the illegal import of these goods that would be not in the favor of economy.

He said that it would cause massive revenue loss to the national exchequer besides encouraging smuggling.

He said that Directorate General of Valuation should take the importers of decoration lights (rice light) in con-

pakistan-Indonesia trade volume reaches $2.3b: Hadi Santoso

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KARACHI

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onsul General of Indonesia Hadi Santoso has said that the trade volume between Pakistan and Indonesia, which stood at US$1.6 billion when he assumed charge as the Consul General in November 2014, has risen to almost US$2.3 billion in November 2016 when he was about to leave this city after successfully completing his tenure. Exchanging views during his farewell visit to the Karachi Chamber of Commerce and Industry (KCCI), Hadi Santoso appreciated the support and cooperation extended by the business and industrial community, particularly the Karachi Chamber which helped in

achieving numerous objectives throughout his tenure.

KCCI President Shamim Ahmed Firpo, Senior Vice President Asif Nisar, Vice President Muhammad Younus Soomro, Chairman Diplomatic Missions & Embassies Liaison Sub-Committee Altaf A. Ghaffar, Chairman of Pakistan-Indonesia Business Forum Shamoon Zaki and KCCI Managing Committee members were also present on the occasion.

Indonesia Consul General Hadi Santoso further stated that he was pretty impressed to see the overwhelming support and cooperation along with the hospitality of the people of Sindh, particularly Karachi city who were very keen to strengthen their trade and cultural ties with their brothers and sisters in Indonesia. He said that although trade has

been gradually improving but the there was a huge potential to raise the existing trade volume to new heights which can be done through joint efforts. In this regard, the Chambers of Commerce in both countries need to play a more vibrant role which would surely yield positive results. He was of the view that rapidly boosting bilateral economic ties between Indonesia and Pakistan offer prospects to further forge the bonds of friendship and to establish broad-based commercial partnership. “Although it is time to say goodbye to my friends and brothers at Karachi Chamber, but no matter wherever posted, I will always be available to you”, he said, adding that after spending two years in Karachi, he Qinds himself more a Pakistani than an Indonesian.

Qidence and Qind out an acceptable solution of the issue. He said that if new valuation mechanism continued to be implemented, importers of decoration lights would be left with no other option but to close down their businesses or to adopt illegal ways to bring imported decoration lights into the country. He hoped that Federal Finance Minister, Chairman Federal Board of Revenue and DG Valuation would take prompt action in this regard and would resolve the issue at the earliest.

kccI seeks extension in tax returns filing up to Dec 31 arachi Chamber of Commerce and Industry (KCCI) President Shamim Ahmed Firpo has requested the Federal Board of Revenue (FBR) to extend last date for filing of income tax return up to December 31, 2016 as many filers will not be able to submit their returns due to slow processing and persisting errors. In a statement issued, he requested the Board to extend time for the filing of tax returns and wealth statements and statements under Section 115(4) of the Income Tax Ordinance, 2001 till December 31, 2016.

KCCI president pointed out that large number of KCCI members, while seeking assistance, stated that they may not be able to file their returns by November 15, 2016 due to faulty online registration system.—CB Report

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SHC seeks M/s Bismillah Industry’s remarks on appeal by Port Qasim collector Thursday December 1, 2016

National fBr set to notify prices of fertilisers in retail packing ISLAMABAD

M fAIZAN

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he Federal Board of Revenue (FBR) has taken serious notice of the high prices of fertilizers in retail packing and is considering a proposal to notify zones in this regard.

According to sources, a high level meeting was held in the FBR headquarters. The meeting was presided over by FBR Chairman Nisar Mohammad Khan, and was also attended by Member Customs Nasir Masroor Ahmad, Member Inland Revenue Policy Rehmat Ullah Khan Wazir, Member Inland Revenue Operations Dr Muhammad Irshad Khan, Member Strategic Planning and Reforms and IT Dr Muhammad Iqbal, Member Administration FBR Muhammad Majid Qureshi ,Member FATE Nausheen Javaid Amjad and Member Legal Hafiz Muhammad Ali Indhar. During the meeting, a brief presentation was made by Member Inland Revenue Operation Dr Muhammad Iqbal, highlighting the need for notifying zones for determination of the prices in retail packing.

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world Bank team to review fBr’s reform initiatives n bid to review reform initiatives, a World Bank team will visit the Federal Board of Revenue (FBR) from November 21 to December 2. The team would review reform initiatives including tax functions, tax audit, IRIS functional review, information technology, tax policy analysis and electronic monitoring of production/track and trace, which are being revived under the Trust Fund for Accelerated Growth and Revenue. WB Mission members, including Raul Junquera-Varela (Lead Public Sector Specialist, ITL), Muhammad Waheed (Senior Economist, Co TTL), Charles Blanco (Sr Public Sector Specialist), Irum Touqeer (Public Sector Specialist), Joey Ghaleb (Sr Public Sector Specialist).—CB Report

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KARACHI: The Sindh High Court (SHC) has directed the management of M/s Bismillah Industry and Member Judicial-II, Customs Appellate Tribunal Karachi to file their respective para-wise comments on an appeal filed by Collector Customs Collectorate Port Qasim, challenged impugned order of the Custom Appellant Tribunal in a case of evasion of duty and taxes of Rs 7, 321, 958. A two-member bench comprising Justice Irfan Sadaat Khan and Justice Muhammad Humayun Khan was hearing the appeal. Earlier, counsel for the applicant stated that respondent M/s Bismillah Industry imported a consignment which was declared to contain “zinc coated alloy steel sheets.

Banks directed to provide services to customers not having NtN T

KARACHI

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he State Bank of Pakistan (SBP) has directed banks not to refuse banking services like opening of new account just owing to non-availability of National Tax Number (NTN). The SBP, through a circular, revised regulations on AntiMoney Laundering (AML) and Combating the Financing of Terrorism (AML/CFT) regarding the requirement of NTN. Under the AML/CFT Regulations which requires banks/DFIs to obtain NTN, wherever applicable, in case of establishing banking relationship with sole proprietors. The SBP clariQied that the requirement of obtaining NTN depends upon availability/ issuance of NTN by tax authorities. The requirement of NTN should not be

the reason for refusal of banking services to the customers, especially, where bank account is a prerequisite for obtaining NTN as per FBR’s criteria. “The banks/DFIs should facilitate their customers in opening bank accounts and subsequently ob-

tain NTN when issued by the Federal Board of Revenue (FBR),” SBP said.

The SBP has received certain complaints that several banks are not opening bank account due to unavailability of NTN, which is mainly issued by the FBR. Sales tax registra-

tion or NTN are included in the list of minimum documents to be obtained from various types of customers under AML/CFT Regulations for sole proprietors along with other documents. According to BPRD Circular Letter No 35 of 2016, issued on November 22, 2016, the AML/CFT Regulations require banks/DFIs to obtain NTN, wherever applicable, in case of establishing banking relationship with sole proprietors. However, the SBP clariQied that the requirement of obtaining NTN depends upon availability/issuance of NTN by tax authority, ie, the Federal Board of Revenue. “Therefore, the requirement of NTN should not be the reason for refusal of banking services to the customers, especially, where bank account is a prerequisite for obtaining NTN as per the FBR’s criteria,” the SBP said.

Sialkot Appraisement collects rs 1,022.88m T

SIALKOT

SALEEM AwAN SHEIkHU www.customsbulletin.com

he Customs Collectorate Appraisement wing collected Rs 1,022 .88 million under the head of duty and taxes from August to October 2016.

Principal Appraiser Abdul Hameed told Customs Today that Collector Sialkot Ahmed Reza Khan, taking keen interest in revenue collection, instructed all the departments to increase revenue collections under all heads in order to strengthen the national economy. He said that under the supervision of Collector Reza, the Customs Appraisement collected Rs 780 million as sales tax, Rs 122.88 million in the shape of customs duty and Rs 120.2 million under the head of income tax during the period. He said that the Federal Board of Revenue (FBR) has not yet assigned target of revenue collection target to MCC Sialkot. The principal appraiser added that the appraising department got permission

from the collector to send notices to defaulter of taxes and duties.

The defaulters will have to face stern action after November 30, 2016 if they failed to clear outstanding dues. Deputy Collector Waheed Anwar Abro showed sat-

isfaction over the collection of revenue, adding that handsome amount of duty/taxes will be collected in ongoing month of November. The department will take stern actions against defaulters as per Customs Act,

1969. He said that the Sialkot Customs has good relations with exporters and importers of the region, adding that the department has to take action against those who show reluctance for the payment of duty/taxes.

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Customs Intelligence reshuffles deputy directors, assistant directors FAISALABAD: Customs Intelligence and Investigation Headquarters Deputy Director Khaldunul Haq has reshuffled four Customs officials, including two deputy directors and two assistant directors at Gwadar, Islamabad, and Rawalpindi with Immediate effects. He has transferred Deputy Director Muhammad Azam from Karachi to Gwadar and posted Deputy Director Shafiqur Rehman from Faisalabad to Islamabad. Furthermore, Assistant Director Maryam Khalid has been transferred from Islamabad to Rawalpindi Customs Intelligence, while Assistant Director Riffat Hussain has been assigned task at Gwadar Customs Intelligence from Karachi. The transfer and posting orders of staff stand relieved with immediate effects to join their new place of posting according to Notification No, 120/2016 transfer and posting issues with the approval of Director General ShauKat Ali Khan.

reference values of acrylic bath tubs, plastic keychains issued KARACHI

wAQAr AHMED ANSArI www.customsbulletin.com

he Directorate General of Customs Valuation has issued the reference values for acrylic bath tub without motor and accessories low end brands of China origin and key chain made of plastic materiel. The Directorate General has initiated an exercise to develop database values for different items wherein it has been observed that declarations are of wide range and do not correctly reflect values of the items as traded in the international market. During the scrutiny of previous clearance data, it has been ob-

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served that acrylic bath tub without motor & accessories Chinese low end brands, falling under PCT Headings 3922.1000, 3922.9000, are being assessed at different values and certain transactions are on very low side. The directorate general, after carefully examining the clearance data, also conducted market inquiries to verify the authenticity of declarations. Online prices were also obtained to corroborate the findings of the market surveys. This office, therefore, has found that the customs values of acrylic bath tub without motor & accessories chinese low end brands are as $3.54 per kilogramme. In another process of scrutiny, it has been observed that Key Chain made of Plastic materiel, falling under PCT headings 3926.9099, are being assessed at different values and certain transactions are on very low side. The department conducted market inquiries and found the customs values of plastic key chain of China origin at $2.5/kg These values are, however, for reference/guidance only and final assessment may please be made after considering other factors which have bearing on the customs value.

National

fahad Bashir decides to monitor weekly performance of ASo A

SIALKOT

SALEEM AwAN SHEIkHU www.customsbulletin.com

ssistant Collector and Incharge of Anti-Smuggling Organization of Model Customs Collectorate (MCC) Sialkot Chaudhary Fahad Bashir has decided to monitor weekly performance of the organization to make it more efQicient. Talking to Customs Today, he said that he would review the strategies adopted by ofQicials to curb smuggling in the Gujranwala region.

He said that he observed the performance of superintendents, deputy superintendents and inspectors of the ASO. Meanwhile, the ofQicials of the ASO have been directed to discuss the matters directly with the assistant collector instead of writing letters to the headquarters.

The Incharge ASO will monitor the performance of ASO Sialkot, Gujranwala, Gujrat and others areas to improve the anti-smuggling activities in the region. However, ASO ofQicials have been deputed at main points in the jurisdiction to hold the smuggled items and vehicles.

He said that the monitoring of ASO is already in progress but the higher authorities of Custom Department has instructed that the Inchage ASO should make monitoring every week then I decided to compliance of instructions of Higher authorities of department. He added that the ASO Sialkot performance is satisfactory while the ASO is also

Thursday December 1, 2016

making performance much better day by day to curb smuggling from the region. The department has tightened noose around the smugglers. He said that the public should co-operate with ASO to curb smuggling because the ASO has vowed to eradicate the smugglers from the region and ASO will must success in his mission soon.

customs tribunal reserves verdict in five cases ISLAMABAD

NAEEM ULLAH tArIQ www.customsbulletin.com

he Customs Appellate Tribunal held hearing of over a dozen customs references during third week of November and reserved verdict in five cases. Customs Appellate Tribunal’s bench, comprising Chairman Manzoor Hussain Malik and Technical Member Ziauddin Wazir heard the customs references. The bench, heard cases filed

by M/s Trade Master, Abid Butt, M/s Saleem Silk Centre, M/s Five Star Trading, M/s Luner Technologies, Al Sheikh Corporation, M/s Sun Diplomatic Bounded Warehouse and M/s Nayatel Private Limited, M/s Malik Jehangir, M/s Pak Gulf Construction Private Limited, M/s Frontier Cable, M/s Mughal Steel, Raja Nabeel Razaq and others.

The bench reserved decision on references filed by M/s Pak Gulf Construction Private Limited, M/s Frontier Cable, M/s Mughal Steel and Raja Nabeel Razaq and M/s Malik Jehangir.

M/S Pak Gulf Construction Private Limited had filed a case for release of imported panel sheets, commonly used for buildings outer renovation. The bench reserved the decision after receiving report from an evaluation committee. The appellant had filed the cases against Islamabad Customs.

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rashid Sheikh bans transfers, postings of BS-16 officials

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KARACHI

S r kHAN

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he Chief Collector-Appraisement (South) Abdul Rashid Shaikh has imposed ban on transfers and postings of Garde-16 ofQicials with immediate effect. According to notiQication, the Chief Collector-Appraisement (South) has imposed immediate ban of transfers and postings of Grade-16 ofQicials including appraisers, principal appraisers, Upper Divisional Clerks (UDCs) and Lower Divisional Clerks (LDCs) in order to enhance the performance of the departments. In the light of notiQication, no transfers and

postings are to be made in the Qield formation Collectorates including MCC-Appraisement (West), MCCAppraisement (East) and MCC-Port Muhammad Bin Qasim in particular. The sources informed Customs Today that the Chief Collector-Appraisement (South) in order to improve and enhance the performance of the Qield formation Collectorates has taken the said step in connection with imposition of ban on transfers and postings.

It is pertinent to mention here that the Chief Collector Abdul Rashid Shaikh, six months ago had imposed ban on transfers and postings, but it was lifted after a month ago. Meanwhile, Director Input Out-

put C0-efQicient Organization (IOCO) Pervez Esbani called a meeting of the ofQicials of the department the other day. According to details, the Director IOCO after taking charge as the Director IOCO held second meeting with ofQicers concerned in which he issued comprehensive guideline to the ofQicers and ofQicials of the department to carry out their work with clear and focused strategy.

During the meeting, Director Pervez Esbani elaborated guideline to the ofQicers of the department.

He asked them to carry out routine survey of the industrial units, review the duty drawback rates and estimate the quantity of raw mate-

rial with efQiciency. The ofQicers informed the Director-IOCO that the shortage of manpower is hampering the working as the department is facing staff shortage especially appraisers and principal appraisers. Director Input Output C0-efQicient Organization Pervez Esbani assured the ofQicers and ofQicials of the department that he will discuss the issue of shortage of staff with FBR high ofQicials and resolve the issue soon. On the occasion, the Director-IOCO asked the ofQicers and ofQicials of the department to ensure early completion of revision of duty drawback rates, so that the Qinal rates would be sent to the FBR Headquarters.

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Turkish president slams high interest rates Thursday December 1, 2016

World

ISTANBUL: President Recep Tayyip Erdogan said Wednesday people in Turkey paid some of the world’s highest interest rates, something which had to change in order to achieve high growth. “Turkey’s real interest rate is among the highest in the world. That makes me very uncomfortable. We need to change that,” he told the signing ceremony of a strategic cooperation agreement between Turkey’s Borsa Istanbul and the Islamic Development Bank Group (IDB). He said the overnight interest rate reached 7,500 percent after Turkey’s economic crisis of 2001. “Some years tax revenues could not cover the interest payment,” he added. Erdogan recalled how Turkish lenders reduced interest rates in order to boost growth as the country needed to grow above five percent in order to provide employment to working-age citizens.

Hk customs seize shipment of nine military vehicles

customs seizes rs 1m at kochi airport KOCHI

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HONG KONG

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ine armoured military vehicles, along with components and accessories, have been confiscated by Hong Kong customs in a routine inspection at the Kwai Chung terminal, marking one of the biggest seizure of strategic commodities in two decades. Preliminary investigation showed the consignment was being shipped from Taiwan to Singapore, the Post has learned. “Hong Kong was not its final destination.

It is not known why the consignment was unloaded here,” a government source with knowledge of the matter said. Sources believe the recent seizure of armoured vehicles was one of the biggest of its kind in two decades. Photo: FactWire. The source said it was possible the containers carrying

Iran exports over $2b worth of agri products to Iraq ran’s Commercial Counselor in Iraq said the country’s non-oil exports to Iraq amounts to $6.2bn, of which $2.2bn are agricultural products and foodstuff.

Ebrahim Rezazadeh on Sunday highlighted the importance of Iraq’s market for exporting Iranian products, adding “since 2005, our exports to Iraq has increased 17 times, which is three times more than the four continents of America, Africa, Europe and Oceania in total.” He went on to add, “70 per cent of our exports in 2015 were destined for China, Iraq, UAE, Afghanistan, India and Turkey.” Rezazadeh maintained that the highest number of Iranian agencies in Iraq, exchange of highest volvume of tourists between the two countries, over 90% imports to Iraq, reduction of rival countries’ shares in Iraqi market, as well as Iraqi people’s preference for Iranian products have created ample opportunities for Iran.—CB Report

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the military carriers were unloaded by mistake at the terminal with other general goods. “We are still trying to identify the owner, sender and consignee of the cargo,” he said adding that a licence is required to import and export strate-

gic commodities – defined on the Customs and Excise Department’s website as products ranging from high performance computers to sophisticated communication systems, high precision machinery and military weapons.

Netherlands may also cut corporate taxes in stages: minister

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he Netherlands may be able to reduce corporation taxes in the coming years, finance minister Jeroen Dijsselbloem said on Tuesday. Dijsselbloem was reacting to comments made by British prime minister Theresa May who hinted Britain may cut corporation tax again to remain competitive in a post Brexit economy. Dijsselbloem told broadcaster RTLZ in his weekly interview the Netherlands may be able

to cut its basic rate of corporation tax in small stages, as the impact of measures to cut tax avoidance begin to take affect. Corporation tax in the Netherlands is currently 25%. The minister’s statement is noteworthy because the issue is a sensitive one within his own party, the PvdA, RTL said. The party’s manifesto for the 2017 general election makes a point of trying to avoid a ‘race to the bottom’.—CB Report

he Customs air intelligence unit seized Rs 500 and Rs 1,000 currencies worth Rs 10 lakh at Kochi International Airport on Thursday. The sleuths arrested Abdul Salam of Panoor in Kannur on his arrival from Dubai at 9 a.m. The Customs registered a case against the accused for carrying undeclared currencies above the permitted level. Customs Commissioner K.N. Raghavan said that the arrested was a carrier who got Rs 20,000 for bringing the money.

According to him, the unaccounted money had got stuck abroad owing to demonetisation.

The authorities found the currencies concealed in toilet napkin package, tissue paper boxes and soap powder boxes. There was Rs 7 lakh in Rs 1000 currency notes and

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Rs 3 lakh in Rs 500 notes. The Customs suspect that Salam, a frequent traveller to Dubai, is a smuggler.

As per reports, he left for Dubai from Kozhikode airport on November 20. On verification of his passport it was revealed that he travelled to Dubai multiple times.

Customs officials claimed that hawala channels were behind the currency smuggling. The authorities have launched a probe into the deal and are on the lookout for the contact waiting for Salam. Customs department has alerted the Reserve Bank of India, Income Tax Department and Enforcement Directorate about the seizure.

Passengers arriving from abroad should make a declaration at the airport if the amount they carry exceeds Rs 25,000. Meanwhile, After seizing seven drones at Pune airport on September 30, customs officials traced down two illegal shops where these drones were to be transported and arrested two of the employees on Wednesday.

Nudie faces huge tax bill n late 2005, Andrew Binetter, the then chief executive of Australian juice business Nudie, described to ofQicers working at Israel Discount Bank (IDB) how the family venture had taken off. Binetter, who was a co-founder and appointed CEO of Nudie in 2005, told the bank: “We are getting a lot of good Qinancial press in the Australian business media.” “We have even been in discussion with a Richard Branson company with a view to acquiring it,” according to an afQidavit produced by Binetter during a subsequent tax appeal against the ATO. He went on to explain how private

equity business CHAMP had invested in Nudie, taking its valuation at the time to $29 million. Sure, the Qire at Nudie’s factory in May 2004 had hurt, Binetter said, “but we are rebounding from this setback”.

Nudie, which today is one of Australia’s fastest-growing juice companies, had temporarily outsourced manufacturing to various premises around Australia and was looking to set up its own premises again at Pagewood in Sydney’s east. Binetter said a loan was also needed so they could buy equipment for Nudie and a separate Tamarama juice business.—CB Report

S African lemon exports fall short of expectations

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CAPE TOWN

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outh Africa’s Qinal packed for export volume of lemons has fallen short of forecasts, due in part to smaller-sized fruit than expected in a key growing region. In a newsletter, Citrus Growers Association (CGA) of Southern Africa CEO Justin Chadwick

said a year-on-year increase had been anticipated due to new lemon orchards coming into production.

The Lemon Focus Group had settled on an estimate of 16.1 million 15kilogram-equivalent cartons. “This proved ambitious as the Qinal packed for export volume equalled 2015’s record [of] 15 million cartons,” Chadwick said. “The Sundays River region (responsible for almost 2/3rds of

southern African lemons) packed far less than estimate – mostly due to smaller sized fruit. “The Senwes region (Groblersdal and Marble Hall) made a good recovery after a weather related poor crop in 2015 and packed above estimate.” In terms of markets, the Middle East continued to dominate lemon exports, increasing from 6.1 million cartons last year to 6.4 million. Exports to Eu-

rope increased from 2.3 million cartons to 3.4 million, while U.K.-bound shipments grew from 900,000 to 1.3 million. North America and Africa remained static, receiving 500,000 and 100,000 respectively. “The biggest losers were Russia (down from 1.9 m in 2015 to 0.9 million cartons) and South East Asia (down from 2.5 m cartons in 2015 to 2 million cartons in 2016),” he said.

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FBR’s intelligence wing investigates owner of 11 immovable properties KARACHI: The Federal Board of Revenue’s intelligence wing-Inland Revenue has start investigating the source of investment made by a woman, who is owner of 11 immovable properties in Karachi. Sources said that the Directorate of Intelligence and Investigation-IR is investigating the undeclared income, causing loss of revenue amounting to over Rs 42.49 million by a female individual of Karachi. The agency has found that she is engaged in sale/purchase of immovable properties and gain/loss on the sale of properties is adventure trade in nature and is liable to tax.

According to the information collected by the I&I-IR, the woman was involved in evasion of tax by declaring inaccurate particulars of her income.

Sialkot customs collects rs 2.8m at gpo during Aug-oct

Thursday December 1, 2016

National

gilgit-Baltistan customs collects rs 207.8m in 15 days

courts rejects bail pleas of suspects in rs 41m tax evasion case KARACHI

LAHORE

MUHAMMAD NAwAZ

M BILAL

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he Model Customs Collectorate Sialkot collected around Rs 2.8 million in wake of duty/taxes levied on cargo booked through the General Post Office (GPO), Sialkot, from August to October 2016. The Sialkot Customs collected Rs 1.867 million as duty/taxes during the same period of the last year 2015-16. Officials said that the customs has appointed special teams at the Sialkot GPO to monitor cargo in order to eliminate smuggling of illegal items, adding that the AntiSmuggling Organisation (ASO) was vigilant against the movement of notified items through the GPO. Customs Superintendent Muhammad Jaan who is responsible for the collection of duty/taxes at the GPO said that measures were being taken to improve revenue collection. He added that the Sialkot Customs contributed reasonable amount of revenue to national kitty during outgoing fiscal year 2015-16.

pecial Court of Custom Taxation and Anti-Smuggling Judge Syed Faiz Rasool Rashdi rejected the pre-arrest bail pleas filed by Muhammad Yaseen, Abdul Ghaffar, Muhammad Salim and Muhammad Farooq in a case of tax evasion amounting to Rs 41.094 million. During the hearing, counsels for the suspects and the Customs Department completed their arguments on bail applications. After the arguments, the court announced decision and rejected the bail applications.

The court also recalled its earlier order dated September 23, 2016 in which it had granted them interim pre-arrest bail. The investigation officer informed the court in charge sheet that during the investigation, it was revealed that Muhammad Yaseen, Abdul Ghaffar, Muhammad Salim and Muhammad Farooq, manager and directors of M/s Essa Textiles Industries during October 2014 to August 2016 imported raw materials, including yarns and polyesters fabrics for manufacturing of textile articles for subsequently export under SRO 327 (1)/2008 dated March 29, 2008 and were illegally removed from bonded premises of export oriented unit (EOU) and disposed of in local markets without payment of duty and taxes.

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gujranwala fIA arrests 120 human traffickers he Federal Investigation Agency (FIA) has arrested as many as 120 human traffickers, including three notorious smugglers named in FIA’s Red Book during its ongoing operation in Gujranwala Division’s all the six Sialkot, Narowal, Gujrat, Mandi Bahauddin, Hafizabad and Gujranwala districts here. FIA Deputy Director Khalid Anees told that the agency has tightened its noose on the human traffickers, their agents and sub agents during its ongoing fresh crackdown against them.

Khalid Anees told that the FIA has arrested accused human traffickers for sending the innocent people abroad illegally especially to European, Middle East and African Countries and Gulf States by extorting big amounts from them by showing them the golden dreams of their lucid future in abroad.—Zafar Malik

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ISLAMABAD

tArIQ DErYA

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he Model Customs Collectorate Gilgit-Baltistan (GB) collected Rs 207.869 million under the head of duty/taxes during first fifteen days of November 2016. Assistant Collector Akbar Jan said that with the guidance of Customs North Chief Collector Sarwat Tahira Habib and GilgitBaltistan Customs Collector Ali Raza the performance of the department remained satisfactory in

wake of revenue collection. Akbar Jan added that the customs collected Rs 86.541 million as customs duty during the said period, while the same stood at Rs 164.693 million during same period of last year 2015. He also said that the GilgitBaltistan Customs collected Rs 372.098 million during first 15 days of November 2015, while it generated Rs 207.869 million in wake of duty/taxes in running month. During November 1 to 14 2016, the import value of the collectorate stood at Rs 551.702 million against Rs 1.209 million import value of last year. Meanwhile, Customs Collectorate seized 49 of-

fending vehicle and 51 non duty paid vehicles during 4 and half months of Financial Year from 1st July to 15th November 2016-17.

Total 100 vehicles are seized under value of Rs141.6 million. According to details told by Deputy Collector Shahid Jan the performance of Anti Smuggling Organization (ASO) and car cell of Preventive department was satisfactory during first four and half months of current Financial Year 2016-17.

He added that during first four and half month of FY16-17 the car cell seized 51 non duty paid vehicles, the quantity showed that car cell performed very well.

reference values of Samsonite laptop backpack issued

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KARACHI

wAQAr AHMED ANSArI www.customsbulletin.com

he Directorate General of Customs Valuation has issued the reference values for Samsonite brand laptop backpack.

The directorate general has initiated an exercise to develop database values for different items wherein it has been observed that declarations are wide range and do not correctly reQlect values of the items as traded in the international market.

During the scrutiny of previous clearance data, it has been observed that Samsonite brand Lap Top backpack falling under PCT Headings 4202.1900 are being assessed at different values and certain transactions are on very low side.

The directorate general, after carefully examining the clearance data, also conducted market inquiries to verify the authenticity of declarations. Online prices were also obtained to corroborate the Qindings of the market surveys.

This ofQice, therefore, has found

that the customs values of Samsonite brand laptop Backpack of China origin as $20 per piece These values are, however, for reference/guidance only and Qinal assessment may please be made after considering other factors which have bearing on the customs value.

The clearance collectorates may like to consider the values given above before finalizing the assessment of the subject items.

If further fine-tuning in specifications and ensuing values are required, collectorate may forward a

reference along with detailed justifications d worksheets so that requisite adjustments are accordingly issued.

Meanwhile, Directorate General of Customs Valuation has issued the reference values for nebulizer mask and oxygen mask. The directorate general has initiated an exercise to develop database values for different items wherein it has been observed that declarations are wide range and do not correctly reflect values of the items as traded in the international market.

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FIA arrests proclaimed offender-cum-human trafficker Thursday December 1, 2016

Lahore

LAHORE: The Federal Investigation Agency (FIA) has arrested an accused who was declared as proclaimed offender by the court.

Deputy Director Khawaja Hammad told Customs Today that accused Ehsan Nabi son of Nabi Ahmed resident of Nisar Colony arrested by team on intelligence base operation.

Deputy director said that accused extorted Rs 2,40,000/- from complainant Shahid Nadeem for sending him to Dubai on employment visa. He has looted number of other citizens in the wake of sending them abroad on fake documents. FIA team also recovered fake visa stamps, medical certificates and other documents used for travelling under the possession of accused

customs court adjourns hearing of case against cell phone smuggler

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LAHORE

M IMrAN MEHAr

www.customsbulletin.com he Special Federal Court of Customs Taxation and AntiSmuggling adjourned hearing of mobile phone smuggling case.

The Special Federal Court of Customs Taxation and Anti Smuggling has adjourned the hearing of smuggling case against Naveed Bhatti.

Earlier, the court had approved extension in judicial remand of accused who was arrested by the customs authorities from Allama Iqbal International airport while making an attempt to smuggle cell phones from China to Lahore.

The Investigation and Prosecution (I&P) team of Customs Lahore had presented the accused Naveed Bhatti before the special court and asked for his physical remand of Qive days to investigate further regarding

pcA detects tax evasion by M/s wi-tribe Limited irectorate of Post Clarence Audit (PCA) has detected duty and tax evasion by M/s Wi-Tribe Pakistan Limited by way of mis-classification of servers from telecommunication use as servers for computers. The PCA has informed the importer of the clearance data effected from Customs Collectorate Islamabad during January 2012 onward has revealed that the importer got clearance imported server for telecommunication use by mis-classifying under PCT heading 8471.5000 as server for computers, paying CD @ percent, one percent and two percent instead of classifying under correct PCT heading 8517-6290 (other machines for the transmission or reception of voice, images or other data, including switching and routing apparatus) attracting CD @ 20 percent. It was informed that therefore the company has deposited short payment of Rs 49,479.—M Hayat

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smuggling. After completion of physical remand the court sent him to jail for judicial trial which is extended again for fourteen days.

As per sources of Customs Today Naveed Bhatti was arrested by the Customs Preventive when they seized huge quantity of gold from his possession.

Meanwhile, The Special Federal Court of Customs Taxation and AntiSmuggling has approved a 14-day judicial remand of a suspect allegedly involved in a gold smuggling case. A suspect, Ibrar Islam, was arrested by the Customs Preventive from Allama Iqbal International Airport while he was travelling to Muscat. During search of his luggage, the customs ofQicials found 550 gram of gold that he was trying to smuggle from Lahore. The customs registered a case against Ibrar under Pakistan Customs Act, 1969 and seized the gold.

Anti-Smuggling organisation impounds 4 non-duty vehicles

LAHORE

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M HAYAt

www.customsbulletin.com he Customs Anti-Smuggling Organisation (ASO) impounded four non-duty paid vehicles worth millions of rupees from various places in Lahore.

As per the details, the ASO team

faisalabad customs posts 84% growth in revenue collection

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he Model Customs Collectorate, Faisalabad registered 84 percent by collecting Rs 2,941 million during Qirst four months (July to October) of Qinancial year 2016-17 as compared to Rs 1,601 million collected during same period of last Qinancial year. As per the detail, the collectorate collected the revenue on account of four heads customs duty, sales tax, withholding tax and federal excise duty (FED). It collected Rs 697 million as customs duty during the period under review against the col-

lection of Rs 231 million during last year. Similarly, the collectorate collected Rs 2,197 million in the wake of sales tax during the said period of this year against Rs 1,304 million generated during the last year. It generated Rs 45 million as withholding tax against the collection of Rs 41 million during same periods last year. The Faisalabad Customs At all, the collectorate exhibited 29 percent from the targets assigned and 84 percent growth against the Qirst four months of Qinancial year 2015-16.—M Hayat

led by Superintendent Waqar Ahmad Cheema and under the supervision of Deputy Collector Asim Awan conducted raids and intercepted the vehicles during general hold-up. The team comprising, Deputy Superintendent Mazhar Bhutter, Inspector Sajad Bukhari and others carried out the operations and impounded the vehicles, includ-

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customs tribunal hears 35 cases

wo benches of the Customs Appellate Tribunal started hearing of cases on Wednesday and collectively heard 35 cases.

The bench-I comprising Chairman/Judicial Member judicial Justice (r) Malik Manzoor Husain and Technical Member Imran Tariq heard 17 case and bench-II comprising Judicial Member Omer Arshed Hakeem and the Technical Member Imran Tariq heard 18 cases. The bench-I heard the cases, including Faisalabad Customs versus JS brothers, Informax Pakistan versus Lahore Customs, duty free shop four appeals versus Lahore Customs, Multan Customs versus Muhammad

Minister lauds prA’s performance

M LAHORE

cUStoMS BULLEtIN rEport www.customsbulletin.com

inister for Special Education Atif Saeed has lauded the Punjab Revenue Authority (PRA) for showing best performance. The minister, while addressing the 7th and 8th balloting of the Tax Amanat Scheme for restaurant

customers, said that the PRA in a short span of four years has become the leading tax agency of the Punjab government. In year 2011-12, sales tax on services was collected by the federal government on behalf of the Punjab and later transferred Rs22 billion to provincial government, he said, adding that now when PRA is collecting the same tax, its earnings have grown over Rs62 billion per

ing Toyota Coaster, Intercooler Pajero, Toyota Corolla and Toyota Vitz.

The ASO team impounded the Coaster bearing Registration No LRT-8877 model 2002 worth Rs 4 million from Multan Road after the driver of the vehicle failed to produce documents regarding legal import of the vehicle. It is learnt that the vehicle wsa in use of Haji Sohail for more than six years and nobody intercepted it. In another raid, the ASO team intercepted an Intercooler Pajero bearing Registration No LEC11-654 near Moon Market, Lahore which was being driven by one, Waqar Khan. The team asked the person to show documents regarding legal import, but he could not produce the same. The ofQicials impounded the vehicle worth Rs 1.4 million under customs law. The ASO also impounded a non-duty paid Toyota Vitz model 2002 near Wapda Town being played by one Attiq. The value of the vehicle has been estimated at Rs 600,000.

annum. The revenue collection is the principal measure to assess the performance of any tax collection department and Qigures speak for themselves, he said. Additional Commissioner Shehzad Mehmood Gondal highlighting the PRA efforts of tax collection said that several factors could be assigned to this phenomenal growth such as better strategy, facilitation and

Sulman, Muhammad Javaid Iqbal versus Lahore Customs. On Wednesday, it also heard cases of Multan Customs Intelligence and Investigation versus Nisar Ahmed, Khalid and Brothers versus Lahore Customs, Muhammad Amjed Khan versus Lahore Customs, Ziarate Khan versus Multan Customs, Amjad Ali versus Lahore Customs, Pak Star Automobile versus Lahore Customs, Syed Matiullah versus Lahore Customs, Kamran Khan versus Lahore Customs, Multan Customs Intelligence versus S.M. Food Makers, Zuluifqar Ali Anjum versus Multan Customs, Naveed Cargo versus Lahore Customs.—M Hayat

education of the tax payers, effective leadership, transparent and trustworthiness.

However, the aforesaid increase could not be achieved without the advancement in information technology. Restaurant Invoice Monitoring System (RIMS) is just one aspect of ensuring growth in revenues through electronic means of monitoring tax collection, he said.

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Port of Los Angeles, GE partner on cargo digitisation pilot WASHINGTON: The Port of Los Angeles and GE Transportation announced their partnership on a port information portal pilot, which will enhance supply chain performance by delivering fast, data-driven insights through a single portal to partners across the supply chain, according to a news release.

The project also is considered a critical first step toward enabling next-level collaboration and coordination among the many stakeholders involved in the movement of waterborne cargo containers. “To keep pace with the rapidly changing shipping landscape, operations at our ports must evolve,” Gene Seroka, executive director of the Port of Los Angeles, said in the release.

pak Navy vows to ensure safe, secure transit of sea trade from gwadar ubsequent to formal inauguration of Gwadar port, the cargo shipment set off from Gwadar Port under the protection of Pakistan Navy ships. The Pilot Project of CPEC successfully kicked off when the first ever cargo containers arrived from Kashgar to Gwadar, a press release of Pakistan Navy (PN) said. The cargo containers were subsequently exported to Middle East and African countries through MV COSCO WILLINGTON and MV AL HUSSEIN. Pakistan Navy, being cognizant of its responsibility to make the maritime component of CPEC and Gwadar Port safe, deployed its ships and aircraft to provide security cover so as to ensure safe and secure transit of MV

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COSCO WILLINGTON and MV AL HUSSEIN in International waters. The China-Pakistan Economic Corridor (CPEC) project with investment of worth U.S.$ 46 billion, and Gwadar Port as its lynchpin is a game changer and manifestation of strategic partnership between Pakistan and China. Cognizant of these challenges, Pakistan Navy is according high priority to the security of maritime components of CPEC i.e, Gwadar Port, its approaches and the sea lanes leading to and from the port. The success of the CPEC and the Gwadar Port project is linked to the safe and secure maritime environment in the Indian Ocean region in general and in the Arabian Sea in particular. With the operationalization of Gwadar port, the maritime traffic to/from Pakistani ports is expected to increase manifold. Therefore, while providing security to CPEC on land, maritime prong security is considered vital for overall success of the project.—CB Report

Ports & Shipping

port of Virginia gets $217m worth of automated cranes WASHINGTON

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ast Coast ports are working hard to increase their ability to accommodate larger ships, which will continue to involve heavy investment on shipping technology.

The Panama Canal expansion, with its focus on larger vessels, will have a substantial effect on East Coast ports.

While the impact will not be overwhelmingly transformative at Qirst, it will have balance out U.S. cargo between the East Coast and the West Coast. While many logistics experts are taking a wait-and-see approach, some ports, such as in Florida are already seeing increased volume due to shippers attempting to diversify their business between coasts. The Port of Virginia is one of the few East Coast ports with channels already deep enough for fully loaded neoPanamax vessels, making the new investment in automated stacking cranes a harbinger of expected future business. Meanwhile, Dock workers at the Port of Gothenburg, Sweden,

the largest port in Scandinavia, went on strike on November 15, 2016 according to The Local SE. The strike is reportedly due to a demand for better working hours and fairer pay for the Dockers; the dock workers’ union announced the strike on their Facebook page, which began at 2pm local time. Sveriges Hamnar, of Ports of Sweden, heavily criticised the action, which will mean only one-third of the ports usual container trafQic will be able to be handled, this is a

large amount considering that half of all container trafQic for Sweden passes through Gothenburg. Joakim Kenndal, Press Chief at Volvo Group, said: “We have made short-term plans and if the strike is limited to three days we can maintain production, but after three days we don’t know.”This news comes after PTI announced plans are in place to move the freight terminal currently located in the city centre of Gothenburg to the Port of Gothenburg.

Thursday December 1, 2016

Auckland ports beefs up freight links to help centreport orts of Auckland is to pack on more freight links to get cargo to and from the lower North Island. The port said it would work with KiwiRail to provide a daily rail link between the Auckland sea port and its inland ports at Wiri, South Auckland, and Longburn, Manawatu. The service will help both importers and exporters affected by the partial closure of Wellington’s Centreport due to Monday’s earthquake. “We are pleased to be able to put on this service to fill the gap created as a result of the recent Kaikoura earthquake, and we will keep it running until Centreport is able to get back on their feet,” Ports of Auckland chief executive Tony Gibson said.

Details of the service will be announced next week. Centreport said it was still partially operational, and that ships were coming in and rail cargo was going out. “We had to suspend operations to conduct engineering assessments of all our infrastructure and buildings amid adverse weather conditions, while much of the CBD was also closed for safety reasons,” chief executive Derek Nind said.—CB Report

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NY-NJ port’s Maher terminals has new owners M

WASHINGTON

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aher Terminals, the largest terminal in the Port of New York and New Jersey, has been acquired by Macquarie Infrastructure Partners III and a subsidiary of Japanese shipping company NYK Line. The closing of the previously announced sale comes eight years after a unit of Deutsche Bank acquired Maher in 2007 at the height of the pre-recession container import boom, when several large terminal operators changed hands at historically high multiples.

As trade growth slowed following the recession, Deutsche Bank wrote off much of its purchase price, which was listed at $1.86 billion in court documents Qiled last year. The price had earlier been reported at as much as $2.3 billion. Macquarie, a global infrastructure investment

fund that is part of Macquarie Infrastructure and Real Assets, will own 80 percent of the terminal. NYK will control the remaining 20 percent through its NYK Ports subsidiary.

Financial details were not released on the transaction, which Macquarie announced last April and was conQirmed by a source on Wednesday. The 454-acre terminal handles about 2 million 20-foot-equivalent units a year, roughly one-third of the port’s total.

New York-New Jersey, the largest on the East Coast and the third-largest in the US, handled 6,371,720 TEUs last year. New York-New Jersey’s container volume is expected to rise further with the completion at the end of next year of a project to raise the 151-foot vertical clearance under the Bayonne Bridge to 215 feet. The project will allow larger ships to reach Maher and two other Port Newark/Elizabeth terminals that now cannot be served by many vessels. The capacity of ships

blocked by the bridge’s current height varies according to the vessel’s design, but generally includes ships with capacities of more than 10,000 TEUs. Raising the bridge will allow the port to gain full beneQit of a decade-long dredging program, completed in September, that deepened the port’s main channels to 50 feet. Still, the port is expected to face signiQicant challenges in accommodating growth, and these difQiculties could be made worse by the heavier cargo surges that result from larger ships. NYK, which conQirmed the closing of the terminal’s sale, said the acquisition was made “in accordance with its medium-term management plan ‘More Than Shipping 2018.’” The company said it “will continue its efforts to strengthen its global network and improve synergy between terminals and container ships.”Meanwhile, Lynch said the port’s economic impact in the county during a presentation to the Gwinnett Chamber at the InQinite En-

ergy Forum on Wednesday. More than 37,000 20-foot equivalent units of cargo move through the county, he said. “(The Georgia Ports Authority) is not an asset that belongs to Savannah or Brunswick,” Lynch said. “It belongs to the entire state of Georgia.” Awareness of the Port of Savannah’s importance to the rest of the state has grown in recent years in light of expansion of the Panama Canal to accommodate the larger Panamax cargo ships. Lynch said those ships previously had to go through the Suez Canal, resulting in Savannah being the last port of call, after New York City and Norfolk, Va., for ships arriving in the U.S. Now that the Panama Canal can handle the ships as well, Savannah has a chance to be a Qirst port of call for imports coming in on the Panamax ships and therefore see more cargo pass through the area, Lynch said. That’s already lead to increases in cargo moving through the port, he said.

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FBR, KPRA sign MoU on sales tax input adjustment ISLAMABAD: Federal Board of Revenue (FBR) Chairman Nisar Muhammad Khan and Khyber Pakhtunkhwa Revenue Authority (KPRA) Director General Muhammad Yousaf Afraidi have signed a memorandum of understanding (MoU). Under the MoU, both the federal and provincial governments have been authorised to allow sales tax input adjustment.

The taxpayers, who file sales tax returns in FBR and KPRA, have been given facility of mutual input adjustment. Sources said that through this MoU, the taxpayers could buy essential items on discounted price.

Thursday, December 1, 2016

CUSTOMS BULLETIN

collector reza presides over meeting to review anti-smuggling measures SIALKOT SALEEM AwAN SHEIkHU www.customsbulletin.com

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ollector Customs Collectorate Ahmed Raza has presided over a meeting of the Anti-Smuggling Organization (ASO) Gujranwala the other day.

Sources told Customs Today that Collector Ahmad Raza told the participants of the meeting that the government had adopted a comprehensive strategy to curb smuggling of the products from Afghanistan, India, China, Russia and Iran.

He directed all the ofQicials and departments to enhance their surveillance on roads and check all suspicious vehicles which come from Quetta, Peshawar, Mirpur (AJK) and Karachi. He said that ASO ofQicials can play vital role in elimination of smuggling. He said that we should adopt zero tolerance policy towards smugglers and take effective measures against them.

During the meeting Collector Ahmed Reza urged the ofQicials of Customs intelligence to keep checking on all markets, plazas and shops on daily basis and without any confusion. He said that stern action will be taken against those shopkeepers who will

found involved in selling smuggling goods. He said that ASO received credible information that various shopkeepers are selling smuggled items

on behalf of Kashmir Transit Trade, China Transit Trade and Afghan Transit Trade. He also informed the participants of the meeting that due to ef-

fective measures there is lot of decrease is being witnessed in smuggling attempts. The smuggling of nonduty paid on one side affected the

local markets and also deprive the country of huge revenue, he said, adding that all available resources will be utilised to curb smuggling.

‘BtB to focus on untapped areas for catching non-taxpayers’ FAISALABAD

NAEEM SHEIkH

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he Broadening of Tax Base (BTB) is now putting focus on untouched areas in order to improve tax collections by bringing more taxpayers into the tax net, besides launching operation against tax evaders.

Faisalabad Regional Tax OfQice’s (RTO), BTB Zone Assistant Commissioner Ajmal Zahid stated this

during an interview with Customs Today. He added pending cases will also be settled following the directions of Chief Commissioner Shad Muhammad, besides improving the performance of the department. The collection of taxes was necessary to run the state affairs, he added. A large number of people who have costly vehicles, luxury houses, and moveable/immoveable properties but they avoid paying taxes, he said, adding that rich peoples opened bank accounts using the names of poor and innocent citizens in order to deceive the tax ofQicials, as poor

citizens did not have national tax numbers (NTN) and not liable to Qile tax returns to the FBR. Now, the department is more vigilant against them, he said.

The BTB issued six thousand show cause notices to potential taxpayers under Section 114 during Qirst four months (July-October) of Qiscal year 2016-17 asking them to pay taxes or Qile replies within 40 to 45 days, informed. It is important to mention here that, the BTB created a total tax demand of Rs 50 to 60 million through the notices. The zone had served the notice on those potential taxpayers

who have conducted heavy bank withdrawals, purchased properties, cars, etc in order to bring them into tax net, as broadening the tax base would bring ease for existing taxpayers, he added.

Ajmal Zahid said, “If any potential taxpayer violates the orders, he may be arrested or his immovable and moveable properties be conQiscated under Section 130, 139 and 140”. The assistant commissioner said that there is a need to create awareness about tax culture in the country as the government needs money to spend on public welfare project. Then pay-

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ment of taxes is must to improve national economy. Replying a question about that he said that it was unfortunate no one willing to pay taxes in fully quantity and wished to Qind out ways and means to evade taxes. He added that all RTO ofQicials should work honestly as per the expectation of Chief Commissioner Shad Muhammad.

The talented ofQicials were key players of the department as their efforts helped achieve the desired results, he said. “As a government servant, I follow rules and regulation at every step and except the same from subordinates,” he said.