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pecial Assistant to Prime Minister on Revenue Haroon Akhtar Khan has said that it is the endeavour of government to spur growth in the manufacturing sector and is willing to work with the business sector to strengthen the manufacturing sector

through a realistic and consensus-based plan of action based on viable proposals advanced by the business community.

“The government believes in facilitating the business community by providing them a level-playing field and an investment-friendly environment,” he said while talking to a delegation of Pakistan Business Council led

by Council founder Ali Habib and Chairman

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Ahsan Malik. Member Inland Revenue Policy FBR Dr. Muhammad Iqbal and other senior FBR officials were also present. The delegation briefed the Special Assistant to Prime Minister on Revenue on the issues and concerns of the business community with particular focus on challenges facing the manufacturing sector and presented a set of proposals and recommendations for their solution.

Customs AFU earns Rs.34.08m extra against assigned target

Appraisement West generates Rs 57.63 million in November

AFU fails to achieve revenue collection target of November

Govt to solve problems faced by industrialists: Abbasi

Hyderabad Customs earns Rs1574.431m during November

The Customs Airfreight Unit received Rs.34.08 million extra revenue | See pAge 02 |

Appraisement West has generated Rs 57.63 million customs duty, ST | See pAge 03 |

AFU at Allama Iqbal International Airport has collected Rs 871 million | See pAge 04 |

PMAbbasihassaidthegovernmentwas cognizantoftheissuesfacedbyindustrialists | See pAge 14 |

MCC has generated Rs 1574.431m customs duty and taxes | See pAge 16 |

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FBR extends date of filing of income tax returns till December 15 Friday, December 8, 2017

Islamabad

ISLAMABAD:The Federal Board of Revenue (FBR) has extended the date of filing of the income tax returns and statements for the tax year 2017 for another 15 days till December 15, 2017.

According to a circular issued by the secretary Rules and SROs Ajaz Hussain, the FBR has exercised the powers under section 214A of the Income Tax Ordinance, and has extended the date of filing of the returns and statements for the tax year 2017.

customs Afu earns rs.34.08 million extra against assigned target

ISLAMABAD

ISLAMABAD

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TAriQ DerYA

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he Federal Board of Revenue (FBR) has provisionally collected Rs 1,302 billion during the first five months (July-November) of ongoing fiscal year (201718) as compared to Rs 1,089 billion collected during the same period of 2016-17, reflecting an increase of 19.55 percent. The FBR has recorded a growth of over 24 percent during the month of November 2017 when compared with the same period of the last year. The FBR has provisionally collected Rs 270 billion during the month of November 2017 as compared to Rs 217 billion collected in same period last year (November 2016), reflecting a growth of over 24 percent.

The target for the year has been fixed with an annual increase of 19.2 percent over the previous year.

As compared to the required growth of 19.2 percent, the FBR has achieved the growth of over 24 percent in November 2017. The gross revenue collection during November 2017 stood at Rs 283 billion.

After payment of refunds to the tune of Rs 13 billion, the net revenue collection amounted to Rs 270 billion during November 2017.

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he Customs Airfreight Unit received Rs.34.08 million extra revenue against assigned revenue collection target for month of November Financial Year 201718. The AFU was assigned high target for Financial Year 2017-18 against correspondence FY16-17.

Additional Collector Nisar Ahmed Phullerwan while talking with Customs Today has said that during the month of November FY17-18. The Air Freight Unit (AFU) earned surplus amount against assigned revenue collection target under the head of CD, he added that during the above said period the AFU earned surplus revenue of Rs.255.06 million under head of CD while it was assigned Rs.228.61 million of target under head of CD for month of November FY17-18.

AFU had been assigned Rs456 million towering revenue collection target under head of customs duty (CD) during Financial Year (FY) 2017-18 against the correspondence FY16-17.

He told that AFU assigned revenue collection target with amount of Rs.3109 million under the head of CD for Fiscal Year 2017-18 while AFU was assigned Rs.2653 million under same head for FY16-17.

The Additional Collector told that during first quarter (July to

fBr collects rs1,302 billion in Jul-nov with 19.55% growth

September) FY17-18 the AFU was assigned revenue collection target of Rs.488.87 million while it was assigned Rs.457.68 million under head of CD during first quarter FY16-17, he was added that during first quarter FY17-18 the AFU assigned Rs.31.19 million high

revenue collection target against first quarter of correspondence financial year.

The sources told that during the month of September FY17-18 the AFU was assigned revenue target Rs.154.77 million under head of CD while it was assigned Rs.143.27 mil-

lion revenue collection target under same head for correspondence September FY16-17, sources was added that the AFU was assigned Rs.11.5 million high revenue collection target during September FY17-18 under head of CD against same period of last correspondence FY16-17.

iHc reserves verdict of case filed by customs islamabad

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he Islamabad High Court (IHC) on Thursday reserved a decision of customs matter Piled by Collectorate of Customs, Islamabad and dated in ofPice the hearing of another customs case submitted by M/s Hasas Engineering and Construction Company (Private) Limited.

MCC had filed this case against M/s Al Haj Enterprises. The bench

had earlier directed the counsels to submit the related record prior to the next date of hearing.

A single bench of the IHC comprising Justice Mohsin Akhtar Kayani heard the case. The same bench also issued notices to the parties to assist the court on the matter of M/s Hasas Engineering and Construction Company (Private) Limited.

The appellant had challenged the act of recovery of said amount

by Commissioner Inland Revenue

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

M/s Hasas Engineering and Construction Company Private Limited had prayed the court that FBR office had issued a recovery notice to the company which did not hold lawful grounds.

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FIA launches investigation into ATM skimming fraud KARACHI: The Federal Investigation Agency (FIA) Regional Director Dr Amir Sheikh on Tuesday revealed that the agency has launched a probe into the ATM skimming fraud.

It is worth-mentioning that hundreds of Pakistanis lost millions of rupees over a period of few weeks after they fell prey to an ATM skimming fraud. “We approached the bank’s management and solicited information,” said Sheikh, adding that the investigation has been handed over to cybercrime experts.

The FIA director added that immediate action could be taken if an affected person or bank lodged an official complaint with the agency’s cyber crime wing.

Valuation Dept enhances customs value of viscose suiting fabric

Friday December 8, 2017

Karachi

Appraisement west generates rs 57.63 million in november

KARACHI

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irectorate General of Customs Valuation, through Valuation Ruling No. 1223/2017, has increased the values of viscose suiting fabrics. The customs values of viscose suiting fabric were determined under VR No. 776/2015 issued on December 04, 2015. Since the valuation ruling was about two years old, therefore, there was need to re-determine the customs values of viscose suiting fabric. In order to determine the values meetings with stakeholders including commercial importers, All Pakistan Textile Mills Association (APTMA) and representatives of clearance collectorates were held on August 17, September 19 and November 21, 2017.

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Adjudication-ii shows outstanding performance KARACHI

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ustoms Adjudication-II Tahir Qureshi showed outstanding performance by taking actions against tax defaulters and issuing notices during the month of November. Source told Customs Today that the Customs Adjudication-II served a final notice on a defaulter company named M/s Farooq Garments and Export Landhi and recovered Rs 3.22 million from M/s Zahir Malik and Sons Karachi. M/s Farooq Garments and Export was involved in the tax evasion. The company imported different types of liquid chemicals on September 3, 2017 and used the wrong PCT heading. After a careful investigation, the Customs Adjudication-II issued a final notice to the company and cleared the outstanding amount of Rs 4.50 million.

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he Customs Collectorate of Appraisement West has generated Rs 57.63 million customs duty, sales tax, income tax and federal exercise duty during the month of November, 2017 Sources told Customs Today that Customs Appraisement West has collected Rs 17.35 million as customs duty, Rs 15.46 million as sales tax, Rs 12.98 million under the head of income tax and Rs 11.84 million federal excise duty in the month of November. It is necessary to mention here that the Customs Collectorate of Appraisement West has generated Rs 44.81 million customs duty, sales tax, income tax and federal exercise duty during the Pirst three weeks of November, 2017, including Rs 14.36 million as customs duty, Rs 11.26 million sales tax, Rs 10.29 million income tax and Rs 8.90 million federal excise duty.

It is also necessary to mention here that Customs Appraisement West during Pirst 13 days of November has generated Rs26.57million of customs duty; sales tax, income tax and federal exercise duty during Pirst thirteen days of current month of November which include Rs9.21million as customs duty, Rs5.35million of sales tax, and Rs6.34million of income taxand Rs5.67million as federal excise duty.

Earlier Customs Appraisement

West has earned Rs70.17million of customs duty, sales tax, income tax and federal exercise duty during the month of October which included Rs18.98million as customs duty, Rs17.34million of sales tax, and Rs15.21million as income tax and Rs18.64million of federal excise duty (FED). Meanwhile, The Customs Collectorate of Appraisement East has collected Rs 61.99 million under the heads of customs duty, sales tax, income tax and federal exercise duty

Appraisement west has collected rs 17.35 million as customs duty, rs 15.46 million as sales tax, rs 12.98 million under the head of income tax and rs 11.84 million federal excise duty in the month of november

customs revises value of white oil

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KARACHI

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irectorate General of Customs Valuation has re-determined values of white oil.

The directorate in this regard issued Valuation Ruling 1226/2017 and said that reference had been received from clearance collectorate for determination of customs values of white oil. According to the valuation ruling, meeting with stakeholders including

importers and representatives from Pield formations were held on November , 2017 to discuss the current international prices of the subject goods.

Another meeting was held on November 20, 2017. “The stakeholders informed that there are no problems in value for imports from India and other origins but shipments of white oil from United Arab Emirates (UAE) are grossly undervalued and emphasized that white oil is not produced in UAE and stated that the imports from UAE are either of Indian or other origin,”

according to the valuation ruling. The participants also informed that besides under invoicing some importers declared incorrect PCT Headings to evade the government revenue. “The participants of the meeting stated that imports of white oil from UAE logically becomes costlier than direct shipment from that origin where white oil is manufactured,” it said and added that the stakeholders requested customs values of white oil should be determined and notiPied by keeping in view their respective quality / grades.

during the month of November.

Sources told Customs Today that Customs Appraisement East received Rs 14.67 million as customs duty, Rs 21.34 million under the head of sales tax, Rs 8.75 million as income tax and Rs 17.23 million under the head of federal excise duty during the month of November. The Customs Collectorate of the Appraisement East has collected Rs 47.68 during the Pirst three weeks of November.

foreign exchange rates he Exchange Rates Committee of Financial Markets Association of Pakistan issued the following exchange rates bulletin, here on Wednesday. LIBOR FOR CALCULATING INTEREST ON SPECIAL US DOLLAR BONDS VIDE SBP F.E. CIRCULAR NO.42 & 21.07.98 & 04.08.98 RESPECTIVELY.LIBOR.

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Proprietor Delta Marketing appeal against RTO heard in FTO Friday December 8, 2017

Lahore

LAHORE: The Federal Tax Ombudsman (FTO) has heard the case filed by proprietor of M/s Delta Marketing against the Regional Tax Office, (RTO-II) Lahore until the next date of hearing.

FTO Advisor In charge Haji Ahmed heard the complainant number: FTO-LHR/000037/2017 filed by Proprietor Delta Marketing. The counsel for the appellant argued that the RTO had failed to release the sales tax refund to the appellant for the last two years. He said that RTO-II collected excessive tax from the company during the last two years. The petitioner approached the officials concerned several times for issuance of the refunds, but the RTO-II officials failed to clear the refunds after the passage of reasonable time.

Finally, the appellant decided to approach the FTO seeking interference in this case.

fTo postpones hearing of appeal filed by M/s Madina kinno factory LAHORE

SAJiD nAwAZ

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he Federal Tax Ombudsman (FTO) has adjourned the hearing of a case Piled by M/s Madina Kinno Factory, against the Regional Tax OfPice (RTO), Sargodha, until the next hearing.

According to details, FTO Advisor Munwar Ghafoor heard the case in which counsel for the appellant argued that the RTO had failed to release the sales tax refund of the last two years claimed by the company. He said the RTO collected excessive tax from M/s Madina Kinno Factory for the last two years. He approached the commissioner concerned many times for issuance of refunds but the RTO officials did not pay re-

court sends two suspects to jail in cloth smuggling case he Special Federal Court of Customs Taxation and Anti Smuggling on sent two suspects to jail on 14 days judicial remand. According to details available to Customs Today, the suspects, Rehmat Ali and Nasir Khan, were arrested by the Customs Intelligence team. After arresting the accused, Customs Intelligence started investigations against them and got their physical remand. The Customs Intelligence also recovered a huge quantity of foreign made smuggled cloth and goods from their possession.

The Customs Intelligence team told the court that the accused persons were involved in smuggling of cloths from Afghanistan to Lahore and Faisalabad via different routes. They had caused a huge loss to the national kitty in the wake of taxes and duties.

They were involved in smuggling for long time. –CB Report

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funds even after the passage of reasonable time.

At the end, the company decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the RTO to clear refund claims. The counsel further said the RTO should refund the excessive collection in the wake of taxes by the end of financial year but the situation is quite otherwise. Delay in issuance of refunds put burden on taxpayers, he said, adding the RTO Sargodha should audit cases and release extra amount collected from the taxpayers. On the other hand, counsel for the RTO argued that appellant Muhammad Anwar has not submitted all the record to the office on which basis it is claiming for refunds. If appellant provides accurate record, the RTO will issue refunds, if any, after a proper assessment.

Afu fails to achieve revenue collection target of november

LAHORE

M iMrAn MeHAr

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he Pakistan Customs Air Freight Unit at Allama Iqbal International Airport has

collected Rs 871 million during the month of November which is less than the assigned target for November of Pinancial year 2017-18.

Sources told Customs Today that Air Freight Unit has failed to achieve the target of Rs 900 million but recovered only Rs 871 million which is Rs 29 million less than their as-

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signed target for the month. The achieved target is almost 9 percent less than the given target.

Customs ofPicials said that main reason behind the low recovery is blockage of roads in the whole province. Due to closure of roads and sit-in at different points the delivery goods could not be carried out and that is the reason in fall of recoveries.

On the other hand, Pakistan Customs Air Freight Unit has recovered 35 percent extra taxes in the month of November as compared to the same period of the Piscal year of 2016-17 in November 2017-18.

Sources said that the collection of duties and taxes will increase in coming day and recoveries will chase the given target. Difference of recoveries and target will be fulPilled in next month and AFU will overcome the shortage. Imports of different items through Air Freight Unit is expected to increase in coming days sources stated.

court approves judicial remand of chairman fBr appears before LHc accused involved in mobile smuggling hairman Federal Board of Rev- commissioner appeals by the tax-

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he Special Federal Court of Customs Taxation and Anti Smuggling has approved 14 days judicial remand of two accused persons who were arrested during smuggling of mobile phones and some other items as well from Lahore. Muhammad Din and Fayaz Ali were arrested by the Customs Intelligence from Lahore when they were coming through motorway. They were intercepted by the customs authorities at Band Road area. Customs intelligence authorities con-

ducted an operation on intelligence information at band road Lahore and arrested both accused.

Customs intelligence recovered a smuggled and non custom paid mobile phones and accessories from possession of the accused. Customs intelligence also recovered accessories of mobile phones from their possession. Worth of the recovered items is more than Rs2 million in local market. The accused have made a huge loss to the national kitty in the wake of duty and taxes. –CB Report

enue (FBR) has appeared before the Lahore High Court (LHC) and in case Piled by M/s Megna Textile. Justice Shahid Jameel of Lahore High Court heard the appeal Piled by the M/s Megna Textile in which counsel for the appellant argued that besides the order of court FBR sending notice to local companies that court may declare as null and void.

After hearing the arguments from appellant court ordered the chairman FBR that he makes solid policy regarding cases Piled by the

payers. Court ask to the chairman FBR that why board delaying the appeals Piled by the taxpayers and why FBR not decided the case in very next day of Piling of appeal. Court asks that FBR should freeze the bank accounts of taxpayers under section 140 of Income Tax Ordinance 2001 and recovered amount.

Court remarked that problem of this country is that ofPicer implements his own policies, after every six months Chairman FBR has changed.

There is need for good administration in the department. –CB Report

cement industry’s pre-tax profits decline by 15%

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LAHORE

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he cement industry’s profitability has declined despite high sales, as its pre-tax profits went down by 15 percent while after-tax earnings reduced by 3 percent annually during first quarter of FY18 against double

digit growth of 17 percent and 32 percent seen in 1QFY17 and 1QFY16, respectively.

According to experts, the highprofitability growth period of cement producers no longer holds as the price pressure kicks in owing to upcoming capacities and an inability of manufacturers to pass on rising input costs. During JulySeptember, net retention prices of

producers were down by an average of 4 percent or Rs13 to Rs312 per bag. Volatility in prices was mainly due to the price pressure in the north region after the commissioning of cement industry’s 1.3 million tons plan expansion in January. During 1QFY18, sector sales grew by 11 percent YoY, mainly supported by 21 percent growth in local dispatches (total

volume up 15 percent). Performance of local dispatches remained robust thanks to increase in demand from construction and infrastructure projects ahead of general elections next year. Gross margins were recorded at 32 percent (down 9ppts YoY) in 1QFY18, the lowest in 21 quarters. Last lowest margin of 33 percent was seen in 1QFY13.

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he Federal Board of Revenue (FBR) has started a campaign against non-Pilers and tax evaders, Khawaja Tanveer Ahmad Member Operations has said.

The board has collected the data of the citizens from various government agencies, including National Data Base Registration Authority, Water and Power Development Authority, Motor Registration Authority and Excise and Taxation ofPices, cellular companies, Pakistan Telecommunication Corporation, Civil Aviation Authority, Sui Southern and Northern Gas Pipeline companies, Capital Development Authority, Karachi Development Authority, Lahore Development Authority, private housing societies and banks. All the government departments and agencies will be connected with the main data center, which is established by Pakistan Revenue Automation Limited at the FBR Headquarters in Islamabad.

Through this record, the FBR authorities will detect the names of the citizens who fail to pay taxes despite having huge income and assets, he said, adding that they will be issued notices during the Pirst phase of this campaign. He said the cases would be forward to the regional tax ofPices in case they fail to pay the taxes.

He said that the data will be collected

Friday, December 8, 2017

through utility bills, properties, vehicles and He said we have no tax culture in Pakistan, traveling abroad to identify the current in- every sector asked for tax concession and no come and assets of a potential taxpayer. He one is ready to pay their due share in taxes said, “We have set a criteria for non-Pilers with his own willingness. We are struggling and I have directed all the chief commis- hard to increase the tax revenues and although sioners and commissioners not to create it is difPicult but I hoped that we can achieve harassment among the potential taxthe set revenue targets for current Pinancial payers.” He said that friendly atyear (2017-18). He said FBR need more retitude will be adopted and if sources especially in terms of human reanyone is involved in tax sources to tackle the current revenue sitevasion or he has subuation because more than eleven mitted false statement thousand or mis-declared his asemployees sets, the ofPicers conof FBR had cerned will deal under been retired. relevant provisions of the income tax laws.

He said we will have to increase the tax revenues because Pakistan cannot move forward without doing this nonand we have decided that in ria for e t i r c ta ll the current Pinancial year 2017ave se cted a e r i “we h d e 18 around 0.2 million new v and nd i ha Pilers will added in tax net ioners s filers a s i m te om through broadening of tax to crea chief c t o n s er base and for this purpose e ission ong th we are establishing BTB, comm nt am e m s s a who will work independs”s id hara payer x a t ently as a subordinate ofPice l tia eer poten of FBR under Director Gena Tanv j a w a kh eral, as like Directorate General Intelligence and Investigation Inland Revenue is working.

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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

pM’s narrative on economy

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rime Minister Shahid Khaqan Abbasi has correctly expressed his apprehensions over political turmoil in the country which he said could cost the nation of foreign investment.

However, he said that Pakistan still has the potential to achieve six month growth to its gross domestic product during the current fiscal year until June. The government has already floated international bonds of $2.5 billion and is receiving loans from the financial institutions to bolster the depleting foreign exchange reserves. No doubt the country is passing through a transitional period as corruption cases have been filed against members of the ruling elite and others who allegedly pilfered billions of rupees from the national wealth. The state of economy is not in a good shape despite the fact that all the economic variables are in its favour. The political chaos and the protests by religious groups can definitely keep the foreign investors at bay as no one wants to invest his money in an unstable environment. However, the prime minister should also understand that economic policies have more leverage than the political policies. North Korea provoked its industrial growth during the days of political uncertainty and China is another example of industrial revolution which it achieved in a dictatorial regime. The extra-prolong religious protest in Rawalpindi was the failure of administration and not the failure of the state. The soft-image of the country which was built after great efforts has been shattered as the situation was mishandled by the local administration. However, it is the responsibility of the prime minister to monitor the financial affairs in the absence of the finance minister which he can do by appointing a financial adviser to brief him on the day to day situation. He cannot handle all the matters all alone as the mandate of the present government will continue till June next year. The unfortunate part of the economy is that, it is almost directionless and this forces the local investors to find foreign destinations for the investment of their money. One fails to understand why business-friendly policies are not adopted in Pakistan. There must be investigations who hinders the implementation of pro-business policies and who opposes the tax relief for the investors.

issue of financial management W LAHORE

Dr AfTAB AfZAL

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hen a nation mortgages itself to a foreign lender,it will definitely have to be ready to bow to its dictations and that is what is happening in Pakistan’s case.

The International Monetary Fund has taken exception to the failure of Islamabad to release a report on the debt management, terming that a regular assessment of the debt structure is important to ascertain the fiscal condition of the country.

According to the media reports, the lending agency sees debt management as an important component to manage public fi-

nance.The last report on debt management risk was released in December 2016 and the next report was due in three months.

The report covers different aspects of the financial condition, including foreign currency debt, foreign exchange reserves, risks in debt refinancing, risks in interest rate and a host of other liabilities.

There is no doubt in the popular understanding that international financial institutions are the colonialists of the current era as they control finance and economy of the so-called developing nations. The strange aspect of the financial institutions is that they are ever ready to offer loans, apparently for develop-

ment projects which ultimately add burden to the poor economies. In other words, the poor nations are persuaded to mortgage their economic freedom to the lending agencies.

Pakistan remained debt free for four years from 1947 to 1951 and troubles started when it took the first loan from the World Bank. Unfortunately, since then the country has been accepting all kinds of loans which have now piled up to over $80 billion. If the current rate of accepting loans continues, every soul of the nation will be mortgaged in the coming years.

One fails to understand why the ruling elite and ofPicial policymakers Pind the external loans as an

easy way to show their performance to the general public. Instead of taking practical steps to improve industry and agriculture or opting for diversiPication of products or producing value added goods, they simply get loans to keep the foreign exchange reserves at certain levels and launch development projects in the country. The consequences of the blind acceptance of loans are dangerous as mistakes of today are the blunders of tomorrow. The coming generations will have to reap what is being sowed today. The government policymakers have to Pind a solution to economic woes in business and industrial management rather running from post to pillar to obtain new loans.

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Customs Adjudication-I recovers Rs4.89m from M/s Siddique Sanitary Works KARACHI: The Customs Adjudication-I has retrieved Rs4.89million from M/s Siddique Sanitary Works Karachi. The company was allegedly involved in tax evasion.

Sources told our reporter that Collector Customs Adjudication-I Mohammad Javed has issued a showcause notice to said company for allegedly causing the treasury a loss of Rs4.89million by way of mis-declaration of classification.

M/s Siddique Sanitary Works imported a consignment of imported tiles, sanitary items including different types of taps, beacons pipes and more items from Italy & got them cleared by mis-declaring the classification under the Pakistan Custom Tariff (PCT) from the Pakistan International Container Terminal (PICT).

court seeks charge sheet against suspects involved in tax refunds scam

Friday December 8, 2017

National

customs court seeks challan against suspects in mis-declaration case

KARACHI

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he National Accountability Bureau (NAB) Court has directed the investigation officer to submit charge sheet against suspects namely Luqman Javed and Abdul Hameed Agar, who were booked in a case of illegal sales tax refunds and caused a loss of Rs 120 million to the national exchequer. During the hearing, the investigation officer appeared before the court and informed that the suspects were arrested by the NAB authorities, and were sent to Central Jail Karachi on judicial remand. However, investigation has not been completed yet, therefore, the court may give them some time to file a final charge sheet against them. After the hearing the arguments, the court granted time and directed him to complete the investigation and file final a challan within reasonable period. It needs to

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KARACHI

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M B rAnA

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ustoms Court Judge Syed Faiz Rasool Rasdhi directed the investigation ofPicer to submit a Pinal charge sheet against the suspects, Muhammad Nazim Minai and others, who were booked in a case of mis-declaration.

The court also granted interim pre-arrest bail to Muhammad Nazim Minai and issued non-bail able warrants against the absconding suspects. During the hearing, the investigation ofPicer sought time to Pile a Pinal charge sheet against the suspects, therefore, the court granted him time and adjourned the matter.

Earlier, counsel for the suspect Muhammad Nazim Minai appeared before the court and Piled an application for bail, he argued the court that his client is innocent and was falsely been implicated in this case, he is ready to face trail, however, he has apprehension of arrest, therefore, court to granted his bail till Pinal judgment of this case.

After the arguments, court had granted his bail against the surety

of Rs2,00,000 and issued notices to the customs authorities and special prosecutor for the customs department. Court also directed suspect appear before the court on next date of hearing. On last date of hearing, investigation ofPicer had produced Pirst information report before the court and informed the

customs ofPicials registered a FIR against suspects namely Sohail Umer son of not knowing and Muhammad Nazim Minai son of Aslam Minai for mis-declaration, after his arguments, FIR was taken on record by this court and court also had issued non-bail able warrants against the absconders. According

to the prosecution case was registered for violation of under section 2 (s) read with serial no 2 of SRO 566 (1)/2005 16, 32 (1) 32 (2) 32A, 131, 192 of Customs Act 1969 read with section 6, 7, 8 of the control of narcotics substances act, 1997 and section read with section 4 of the drags act, 1176 and other section.

fBr withdraws zero-rating facility on 67 textile units be mentioned here that suspects were arrested from different areas of Karachi, who were the beneficiaries of illegal sales tax refunds and nominated in reference in which DC FBR Abdul Rauf Nasir was arrested on October 25, 2017. The investigation officer had informed the court that the suspects and their accomplices managed to get tax refunds on the basis of fake and bogus invoices, incurring a loss of Rs 120 million to the national exchequer. After the hearing, court had sent them to jail on judicial remand and directed investigation officer to complete investigation and submit charge sheet against them within reasonable period. Court also directed Central Jail Karachi’s authorities to produce them.

ISLAMABAD

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ederal Board of Revenue (FBR) has withdrawn zero-rating sales tax facility on purchase of electricity available to 67 textile units on charges of misuse and evasion. The FBR has suspended the zero-rated facility on the recommendation of Regional Tax OfPice (RTO) Faisalabad, which conducted thorough examination of the facility granted to textile units in order to check misuse.

The FBR through a Sales Tax General Order (STGO) directed Chief Commissioner, RTO, Faisalabad to submit report in respect of action taken / recovery made for misuse of the facility.

The FBR also asked Faisalabad Electric Supply Company (FESCO)

to start charging sales tax on the supply of electricity in respect of the companies with immediate effect.

The FBR suspended sales tax zero-rating on supply of electricity of the following companies: Dawood Usman Textile S. R. Weaving Factory Manzoor Weaving Factory Fine Star Weaving Factory Umer Mohsin Weaving Abdul Rasheed Weaving Factory Amjad Weaving Factory Islam Nadeem Weaving Factory Nawaz Weaving Nazir Weaving Factory Irfan Weaving Factory Muhammad Anwar A H Weaving Factory Muhammad Ramzan Weaving Factory Mian Ghulam Mujtaba Weaving Factory Abdul Ghafoor Weaving Factory Nazir Weaving Factory Nawaz Weaving Factory

Waqar Sizing Chaudhry Nasir Ataal Weaving Industries Chaudhry Idrees Weaving Factory Adeem Dyeing Fazal Rasool Weaving Factory Kuishi Weaving Factory Taisal Weaving Factory Muhammad Ramzan Weaving Factory Ghulam Rasool Weaving Factory Fazal Weaving Factory Muhammad Waheed Sharif Weaving Factory N. A. Weaving Factory Ghulam Murtaza Weaving Factory Rashid Power Loom Umar Weaving Factory Ahmad Power Loom Nazir Ahmed Weaving Factory Nasir Zahoor Weaving Factory Amjad Pervez Weaving Factory Khalid Weaving Factory Ray Imdad Ali Weaving Factory Sajjad Akram Weaving Saeed Weaving Factory Ehsan Elahi Weaving Factory

Qamar Shahzad Weaving Factory Sher Muhammad Power Loom Khadim Hussain Weaving Factory Afzal Weaving Factory Asad Weaving Factory Muhammad Irfan Weaving Factory Champion Weaving Factory Rana Ihsan ul Haq Weaving Factory Muhammad Munir Weaving Factory Bisma Supper Collection Jamil Weaving Factory Khair Din Weaving Factory Al-Madina Weaving Akbar Ali Weaving Factory Ahsan Raza Akram Weaving Abdul Nabi Weaving Factory Ahsan Textile Imran Weaving Factory Muhammad Afzal Weaving Factory Mehboob Weaving Factory Sultan Weaving Bashir & Sons Weaving Factory Anwar Weaving Factory.

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Dy Commissioner-IR M Nazir Rizvi to retire on Dec 31 Friday December 8, 2017

National fBr reinstates principal Appraiser Amir Ahmad

ISLAMABAD: Muhammad Nazir Rizvi, a Pakistan Customs Service officer of BS18, is going to stand retired from the government service on attaining the age of superannuation.

The officer, presently posted as Deputy Commissioner-IR, Corporate Regional Tax Office, Lahore, will stand retired from the government service on December 31.

Two inland revenue officers granted performance allowance

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ISLAMABAD

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mir Ahmad Samoo, a Pakistan Customs Service officer of BS-16, has been provisionally reinstated into service with immediate effect until further orders.

The officer, posted as Principal Appraiser at Model Customs Collectorate of Appraisement-West, Karachi was placed under suspension vide Board’s Notification No. 0382-C-III/2017 dated 08.02.2017.

Meanwhile, Qamar Jamal, a Pakistan Customs Service officer of BS-16, has been provisionally reinstated into service with immediate effect until further orders.

The officer, posted as Appraising officer at Model Customs Collectorate of Appraisement-West, Karachi was placed under suspension vide Board’s Notification No. 0381-CIII/2017 dated 08.02.2017.

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fBr remembers late assistant director (Audit) Saeed he Federal Board of Revenue has expressed deep regret over the sad demise of Saeed Imam, a Pakistan Customs officer of BS-18. Saeed Imam, last posted as Assistant Director (Audit), joined the government service on August 23, 1982. The FBR wishes to place on record its appreciation of the dedicated services rendered by the deceased officer. In expressing its sense of grief at his death, the Board conveys its commiseration to the members of the bereaved family, praying, ‘’ May his soul rest in eternal peace and may Allah give patience and fortitude to the family members to bear this irreparable loss.’’–CB Report

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wo ofPicers of Inland Revenue Service, (BS-17), selected through the process of internal job posting (IJP), have been granted performance allowance. Muhammad Yousaf and Aqsa Gharshin, presently posted at Regional Tax OfPice, Quetta, were granted performance allowance with effect from November 15, 2017. Grant of performance allowance will be governed through the terms and conditions laid down vide Circular No. 6(96)S(BIC)/2013-14 dated 06.03.2015 and will be discontinued in case prescribed terms and conditions are not fulPilled within one month from the date of issuance of this notiPication.

Torkham customs foils bid to smuggle2,00,000 Saudi riyals T

PESHAWAR

TAriQ DerYA

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he Torkham Customs Station has foiled an attempt to smuggle 2, 00,000 Saudi Riyals from Pakistan to Afghanistan through Torkham border in Khyber Agency.

The Torkham Customs ofPicials informed Customs Today that during checking the customs force posted at Torkham gate have recovered two lac Saudi Riyals from the procession of Kaleem Ullah son of Ishaq Khan who belongs to Shinwari Kando Khel Khuga Khel of Landi Kotal. It’s important to mention here that the arrested smuggler is customs clearing agent and working in Faqir Zada customs clearing agency at Torkham.

According to the accused smuggler the currency was handed over to him by Afghan national Sadeeq at Landi Kotal Bazar for onward hand-

ing over to him at Afghan side of Torkham and also give Rs4,000 for the consignment clearing purpose.

The accused in his statement also

confessed that in recent past he made three trips of foreign currency to Afghanistan for the said person. He along with seized

2,00,000 Saudi riyals list of denomination of currency notes statements of the accused are sent for further interrogation.

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Customs baggage section revenue up due to holidays of Rabi ul Awal ISLAMABAD: The revenue collection is witnessing an increase in revenue collection due to holidays of Rabiul Awwal at Customs Accompanied Baggage section.

Ali Asad Assistant Collector that during 27 days of November Financial Year (FY) 2017-18 the AB received Rs2.58 million against assigned proportional revenue target under head of customs duty (CD) amounting to Rs1.80 million, he was added that the AB showed 76% average against assigned proportional revenue target during first 27 days of November FY17-18, he told that the AB was earned Rs1.80 million under head of customs duty (CD) during same period of correspondence November FY16-17.

Tax exemption helps grow iT industry ISLAMABAD

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ax exemption on Information Technology exports, IT services and products until June 2019 is an incentive of the incumbent government to promote IT industry, which will ensure a new era of evolution in the country. IT is an emerging sector and it requires support to flourish. The current situation is the main reason for tax exemption on IT sector till June 2019. The federal government has extended the exemption on exports of IT products and services in the federal budget for 2016-17. Over the last few years, the Ministry of IT and Telecom (MOIT) has taken a number of initiatives for the development of ICTs especially in the arena of access, skills, markets, and governance to attain vision of a Digital Pak-

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istan, an official of the ministry said. Led

by IT Minister Anusha Rehman, the MOIT has successfully created an enabling environment where citizens, companies and the government become technology enabled to avail opportunities being offered to them by what is called the 4th Industrial Revolution. Every year, MOIT works with the Ministry of Finance, Federal Board of Revenue, and other agencies to introduce new incentives and initiatives that can fast track the trajectory towards a Knowledge Economy and Society. After coordinated efforts of PTA and telecom industry, Withholding Tax has been brought down to 12.5% from 14% in the Federal budget for FY 2017-18.

However, the Withholding Tax @12.5% on every mobile recharge is still high because majority of the subscribers fall below the threshold of being a tax payer and hence, cannot get the paid amount adjusted in their annual tax returns.

National

pakistan, russia partnership made substantive strides: khurram Dastgir

fBr to collect ST on re-rollable scrap at 70.5% of total LDT of ship KARACHI

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he Federal Board of Revenue (FBR) has issued direction that discharge of sales tax liability on local supply of re-rollable scrap would be calculated at 70.5 percent of total least displacement tonnage (LDT) of the ship imported for breaking. The FBR has issued a sales tax clarification to the field formations regarding clarification regarding sales tax liability of ship breakers.

According to the FBR, Board vide C.No. 3(5) ST-L&P/2007(Pt)124944-R, dated 28.09.2016, had issued clarification under the signatures of Second Secretary (ST&FE Policy), regarding sales tax liability of ship breakers which read as under: “I am directed to refer to your letter No. Nil, dated 16.09.2016, on the subject and to say that under subrule (4) of rule 58H of the Sales Tax Special Procedure Rules, 2007 (amended from time to time), ship breakers shall only pay sales tax at the rate of eight thousand rupees per metric ton of re-rollable scrap supplied by them at the time of import.

The quantity of re-rollable scrap shall constitute 70.5% of the total LDT of the ship imported for breaking.

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ISLAMABAD

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inister for Defence Engineer Khurram Dastgir Khan has said that Pakistan and Russia had made tremendous substantive strides in their partnership since 2013. He was speaking while concluding the 5th Pak-Russia Inter-Governmental Commission (IGC) in Moscow. He co-chaired the meeting with his Russian counterpart, Minister for Trade and Industry Denis V. Manturov, said a press release issued here.

Dastgir said defence cooperation had been the vanguard of this new chapter in Pak-Russia relationship, which would soon be matched by vast energy-sector cooperation.

The Pakistani and Russian ministers signed the formal protocol after a plenary session of the IGC that concluded three days of multifaceted dialogue and negotiations between the Pakistan and Russian contingents.

Speaking to the media after the signing ceremony, Khurram Dastgir said both sides had accelerated ongoing negotiations on numerous energy sector investments by Russia

Friday December 8, 2017

into Pakistan.

“We have also added important new subjects such as trade liberalization to the IGC, and held the Pirst meeting of Pak-Russia Joint Working Group on Trade. Other subjects of the dialogue were mutual recognition of standards, increasing Pak students in Russia, banking and customs cooperation, and visa facilitation,” the minister said.

Khurram Dastgir Khan was appointed recently by the prime minster to co-Chair the Pak-Russia IGC. He led a 22-member delegation consisting of secretaries of Economic Affairs, Energy, and Textile Industry as well as senior ofPicials from the ministries of Petroleum, Foreign Affairs, and Commerce. Minister Manturov led a 50-member delegation of Russian ofPicials.

fiA detects rs 200b tax evasion in re-exports by 27 cos

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LAHORE

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he Federal Investigation Agency (FIA) has detected Rs 200 billion tax evasion scam in re-export allegedly by 27 companies, including some foreign outlets.

According to the FIA ofPicials, the record obtained from various Customs Collectorates reveals that 125 corporate guarantees of M/s BGP (Pakistan) International have already expired but the company did not re-export the temporary imports and was liable to pay all duties and taxes as well as surcharge. However, in a historical recovery, the FIA

succeeded in recovering Rs 750 million from the company.

FIR number 33/2017 was the outcome of Inquiry No. 43/2017 of FIA, ACC, Karachi, registered in this circle regarding fraudulent re-export of surveying equipment of M/s BGP (Pakistan) International, on the strength of bogus/forged documents, without paying duties and taxes. The consignment was scheduled for shipment to China on October 3, 2017 through their customs clearing agent M/s International Moving and Trading Company, which was intercepted

by FIA on October 2, 2017. After lodging of the FIR, the Country Manager Zhang Zhongmin and Deputy

Country Manager Li Chonghong were arrested on November 23, 2017. During the remand period, M/s BGP Pakistan International, through their Pinance controller, agreed to pay the evaded revenue against 125 Corporate Guarantees.

The company got the customs clearance for shipment of surveying equipment without paying duties and taxes by misusing provision of SRO678(I)/2004, in connivance with their clearing agent. The examination of the documents revealed that the customs authorities had cleared the goods on the basis of fake/bogus corporate guarantees. The goods meant for re-export through GD KAFE-SB-

1999 dated 28.09.2017, were earlier imported in the years 2014 and 2015.

As a result of the timely action of the FIA, the customs authorities have started contravention proceedings against M/s BGP (Pakistan) International and its clearing agent on the charges of evasion of duties and taxes. M/s BGP (Pakistan) International has been working in Pakistan since 1995 and is engaged in business with numerous oil and gas producing companies. The company imported hundreds of consignments of surveying equipment under provision of SRO-678(I) 2004 but didn’t comply with terms and regulations of SRO-678(I) 2004.

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World Customs

New tax regime hits Nepal’s export to India

KHATMANDU: Nepal’s export to India has been adversely affected after the enforcement of Goods and Services Tax (GST), as the export to India became costlier after the new rules were implemented. Export of major export items to India, which were enjoying zero duty or nominal tariff earlier, has dropped significantly, according to the Nepal Rastra Bank’s recent report.

Export of juice, jute products, vegetables and fruits, processed food like biscuits and noodles, cardamom, among others, have plunged heavily.

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uk property taxes soar uS coast guard offloads past £80b for the first time cocaine seized in caribbean Sea LONDON

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he United States Coast Guard says the crew of the Cutter Pelican has ofPloaded about one ton of cocaine, worth an estimated U.S. $23 million in St. Petersburg, Florida that was seized in the Caribbean Sea. The Coast Guard said the ofPloading took place and three suspected smugglers were also arrested. The Coast Guard reports that while patrolling during Operation Caribbe, on November, the crew seized more than 834 kgs of cocaine from a suspect vessel that was located south of Jaragua in the Dominican Republic. While working under the direction of U.S. Joint Interagency Task Force South (JIATFS), the U.S. Coast Guard said law enforcement members boarded the go-fast boat and discovered 30 bales

Jakarta aggrieved by china’s ban on indonesian mangosteens ndonesia is experiencing friction with its largest trading partner, China, over access to the Chinese market for its mangosteens. Enggartiasto Lukita, Indonesia’s Trade Minister, told Asia Times during a trade expo in Banten, on Java island, that: “We [have] complained about the export to China for mangosteens, bananas and bird nests.” China, which surpassed the United States as Indonesia’s top export destination last year, in fact lifted import restrictions on Indonesian bananas and bird nests (which are used to make soup) in 2014 and 2015 respectively.

However – as confirmed by Dandy Iswara, trade attache at the Indonesian embassy in Beijing – Indonesian mangosteens have been banned from entering China. –CB Report

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of cocaine and apprehended three suspected smugglers.

The Coast Guard said the contraband and detainees were transferred to RFA Mounts Bay, a Royal Fleet Auxiliary Bay-class auxiliary landing ship dock.

The RFA Mounts Bay crew transferred the detainees and contraband to the crew of the Pelican and offloaded at Coast Guard Sec-

tor St. Petersburg.

“This offload today is the result of the combined efforts of our partners and allied men and women who continue to work day and night to stop these criminal organisations from profiting off transnational crime and smuggling,” said Capt. Aldante Vinciguerra, chief of response, Coast Guard’s 7th District.

Berlin using customs union upgrade as political tool

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ecent series of events has set off a quasi-reconciliation process between Turkey and Germany. Inundated by a great number of issues and crises over the course of the last one-and-a-half years, the two countries now strive to salvage the marred ties. Besides bilateral matters, the skirmish between Ankara and Berlin spilled over across the European Union. The process of updating the customs union between

Turkey and the 28-nation bloc is an outstanding example. Signed and sealed in 1995, the Turkish-EU customs union went into effect as of Jan.1, 1996. Nearly 22 years into the agreement, the changing world order and modern realities require comprehensive changes. Yet, there is an obstacle. “I can’t imagine that the EU negotiations with Turkey about the customs union could be extended,” said Sigmar Gabriel. –CB Report

K residents are paying higher property taxes than anywhere else in the developed world, with receipts soaring past £80bn for the Pirst time.

In news that won’t come as much of a surprise to homeowners and businesses alike, new research has revealed that the UK has the highest property taxes in the world both as a percentage of GDP and overall taxation. Analysis of OECD data shows that taxes on residential and commercial property, inheritance tax and business rates jumped to £81.4bn in 2016, up from £76.6bn the previous year. This means revenue receipts for property taxes have gone up by £19.9bn since 2010. Britain’s property taxes as a percentage of overall taxes were 12.5 per cent in 2016 – more than

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double the OECD average of 6 per cent. This puts it ahead of countries including South Korea (12.3 per cent), Canada (11.8 per cent) and Australia (10.7 per cent).

Property taxes are the equivalent are of 4.1 per cent of GDP in the UK, higher than France at 4.0 per cent and Canada at 3.8 per cent.

In last week’s Budget, the Government announced that it was scrapping stamp duty for first-time buyers on properties worth up to £300,000 as well as curbing rises in business rates.

Meanwhile, The UK will, from April 2018, increase the amount of tax paid by those registering a diesel car for the first time that does not meet the latest emissions standards, the UK finance minister has revealed. As it stands, diesel car sales in the UK (the second biggest auto market in Europe) have already fallen 15% this year with petrol/gasoline-powered car sales only rising 3% in the same time, interestingly.

canadian imports of uS butter plunge s the Pifth round of talks to renegotiate the North American Free Trade Agreement (NAFTA) wrap up in Mexico City, Canada appears to be becoming less dependent on U.S. imports of certain dairy products, particularly butter.

“Canada’s efforts to curtail butterfat imports seem to be going exactly as planned. At the turn of the year, the Canadian Dairy Commission increased the national milk production quota, and Canadian dairy producers have responded accordingly,” says Sarina Sharp, agricultural economist with the Daily Dairy .

In October during the fourth round of NAFTA talks in Washington, D.C., a U.S. proposal that would dismantle Canada’s quota system over 10 years was introduced. While Canada has not officially responded to that proposal, it is widely expected that the country will reject it. The sixth round of NAFTA talks will take place in Ottawa in January. In the meantime, Canada is ramping up milk production. For the Pirst eight months of 2017, milk production in Canada rose 5.9% above the Pirst eight months of 2016, according to data from Statistics Canada. –CB Report

police arrest 12 connected to cannabis smuggling network

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CAPENHAGEN

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eople 12 have been arrested in connection with the investigation of a criminal network which police believe to be responsible for widespread organised smuggling and sale of cannabis.

The arrested individuals are be-

tween 32 and 49 years of age, Copenhagen Police conPirmed in a press statement. The arrests took police during coordinated police raids on Wednesday.

“This is a network that has been responsible for a large amount of smuggling of cannabis into Denmark. There is an international network that is responsible for and delivers the cannabis in question,”

police inspector Flemming Madsen said in the statement. The raid primarily took place on Zealand, but arrests were also made in Jutland as well as in Spain, police said. Investigations leading to the arrested were carried out with the assistance of authorities abroad. 1,100 kilograms of cannabis have previously been seized by police as part of the investigation – an amount estimated

to be worth 55 million kroner (7.4 million euros). Wednesday’s arrests and raids also led to the discovery of several weapons, 32 kilograms of cannabis and large amounts of cash.

Eight of the arrested individuals will appear before magistrates at Copenhagen City Court on Thursday, while three others who had previously been detained in connection with the case will now face the court.

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Five ships take berth at Port Qasim KARACHI: Five Ships, CMA CGM Narmada, Marvel, Zhoungyu, YM Miranda and New Century scheduled to load/offload containers, Rice, Coal, Chemicals and Diesel oil were arranged berthing at Qasim International Container Terminal, Multi Purpose Terminal, Port Qasim Electric Power Terminal and FOTCO Oil Terminal respectively. Meanwhile two more Bulk cargo carriers Kosman and Kiran Caribbean with 100,708 tonnes Coal also arrived at outer anchorage of Port Qasim during last 24 hours. Seventy six percent berth occupancy was observed at the port on Sunday where a total of twelve ships namely, CMA CGM Narmada, Safmarine Ngami, Marvel, Zhoungyu, Klima, Trade Will, Majestic Sky, YM Miranda.

Hoegh Lng pulls out of pakistan Lng import project hipping company Hoegh LNG cancelled a deal to provide a floating import terminal for a liquefied natural gas (LNG) project being developed by Turkish company Global Energy Infrastructure Limited (GEI) in Pakistan. This month Hoegh LNG announced the consortium behind the project, including Exxon Mobil, France’s Total and Qatar Petroleum, had dissolved due to unresolved differences with GEI, adding that it was evaluating its own options. Hoegh LNG was due to supply the project’s ship-based import terminal, a floating storage and regasification unit (FSRU), where LNG brought in by tanker is converted back to gas to feed into Pakistan’s grid. The project was set to be Pakistan’s third

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Ports & Shipping

pakistani interest in gwadar project fully considered: copHc BEIJING

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he Chinese company that is developing the Gwadar Port and the Gwadar Free Zone has said it has fully considered the interests of Pakistani side and has also agreed to share revenues from those projects although it wasn’t originally required to do so.

An employee from the China Overseas Ports Holding Co (COPHC) told the Chinese newspaper ‘Global Times’ that the company had agreed to turn over nine percent of the revenues from the Gwadar Port as well as 15 percent of the revenues from the Gwadar Free Zone to the Pakistani side.

The employee, who spoke on condition of anonymity, was responding to some media reports that 91 percent of the revenues from the Gwadar Port, which is part of the China-Pakistan Economic Corridor (CPEC) belong to China, and the Gwadar Port Authority would only

get nine percent for the next 40 years. The COPHC employee said that common international rules regarding build-operate-transfer (BOT) projects do not require the operator to share any revenue from the projects during the investment and operation period with the eventual owner. “Since taking over command of the Gwadar Port and Gwadar Free Zone, COPHC has invested a huge amount of capital (US$270 million as of now). But the company still

faces large losses because the infrastructure, including roads, water and electricity weren’t put in place,” the COPHC employee said.

“At present, the operation of the Gwadar Port and Gwadar Free Zone is quite difPicult and needs huge investment. Thus, we hope that a sound external environment is created for Chinese companies to support them fully in the development and operation of the Gwadar Port,” he continued.

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Shipping activity at port Qasim ive Ships, APL-Charleston, Maersk Atlantic, Maersk Bentonville, Chemroad Orsis and Lion-M carrying containers and Plam Oil and Furnace Oil took berths at Qasim International Container Terminal, Liquid Cargo Terminal and FOTCO Oil Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority (PQA) here on Wednesday. Meanwhile seven more ships, with Chemicals, Project Cargo, Steel Coil, Furnace oil, LPG and LNG also arrived at outer anchorage of Port Qasim during last 24 hours. Berth occupancy observed at the Port at 65% on Tuesday where a total of eleven ships namely, APLCharleston, Maersk Atlantic, Maersk Bentonville, Marvel, Unity Discovery, Trade Will, Majestic Sky, Black Pearl, Golar Kevin, Chemroad Orsis and Lion M are currently occupying at berth to load/offload Containers Rice, Coal, Sun Flower Seeds, Soya Been Seeds, LPG, Plam oil and Furnace oil respectively. –CB Report

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SL gives concessions for china port operations and biggest by import capacity, starting in late 2018 or early 2019. “Hoegh LNG has considered its options under the contract with GEI, and has today informed GEI that it has concluded to terminate the FSRU charter agreement signed 15 December 2016,” it said in a stock market announcement.

Last month Reuters reported that Exxon Mobil pulled out of the project owing to disagreements with GEI and that Total and Mitsubishi could also quit and join a rival scheme. The shipping company said it is holding multiple discussions about finding alternative employment for the FSRU and hopes to clinch a deal before the end of 2018. –CB Report

COLOMBO

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ri Lanka has given a series of tax exemptions for two joint venture companies with China that will part own or manage common user facilities and commercial assets of a port in Hambantota in the South of the country. The tax breaks are given under the Strategic Development Projects Act enacted in 2008, which has wide discretionary powers and has drawn criticism as a opening the doors for corruption.

The law also brought in a controversial practice of giving tax free lifestyles to dozens of highly paid foreign executives, going against the principle of tax equity and broadbasing of the tax net.

Hambantota International Port Group (Pvt) Ltd, the project com-

pany that will operate the commercial assets of the port will get a 25 year corporate income tax holiday starting from July 2024. It will invest 794 million dollars.

There will also be an exemption on dividend tax. The Hambantota Port at the moment is a huge loss to the government. In a move will bring some revenue to the state coffers the company will however have to pay a 0.05 percent economic service charge on total revenue of the Pirm during the corporation income tax exemption period. Any management fees will be exempt from withholding tax for only 7 years, and only if such fees are below 3 percent of turnover and marketing fees, if they do not exceed 1.5 percent of turnover. Incentive management fees will also be exempt from withholding tax for only 7 years, and only if they do not exceed three percent of operating proPits. It will

however be exempt for 25 years on any withholding taxes due on interest on foreign loans and fees to consultants. In controversial move, continuing a iniquitous practice started by the ousted Rajapaksa regime, the current regime has also exempted 27 expat employees from paying income tax on their salaries.

The company, contractors and sub-contractors have also been exempted from custom duties, port and airport levy, excise charges on imports related to the project. Hambantota International Ports Services Company (Pvt) Ltd, which will operate the common user facilities has also been given wide exemptions. It is expected to invest up to 606 million US dollars, the notice said.

It will also get similar tax breaks and will pay economic service charge. Controversially three expat employees will be given tax free lifestyles for seven years.

Meanwhile, The port, the largest port in the Middle East, saw a huge 44 percent year-on-year rise in cargo movement in September this year, while 120 percent rise was seen in tonnage in the same month.

The port harboured 150 vessels in September this year compared to 104 vessels in same month last year while net tonnage at the port rose to 143,750 tonnes in September against 65,470 tonnes in September 2016. The strong movement at the port is result of proactive steps taken by the Mwani in the past few months.

The year-on-year growth in cargo traffic has continued in every month, after the siege was imposed on June 5 blockading countries. In August, vessel movement increased by 47 percent as 162 vessels harboured at the port compared to 110 vessels in same month last year.

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Vehicle owners to get registration book within 24 hours Friday December 8, 2017

Business

PESHAWAR: The Excise & Taxation Department on special directives issued by the Chief Secretary Khyber Pakhtunkhwa, Muhammad Azam Khan has improved the vehicle registration process according to which the public has to get registration number for their new vehicles on the same day of their application.Under the new process of vehicles registration, adopted by the E&T Department the owners of motorbikes would get registration number and registration book within 24 hours after applying for the same to the department anywhere in the province.

‘govt to solve problems faced by industrialists’ ISLAMABAD

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rime Minister Shahid Khaqan Abbasi has said the government was cognizant of the issues faced by industrialists and was working diligently on tax reforms. “We understand that there is a delicate balance between tax collection and industrial growth”, he stated. The Prime Minister expressed these views during the meeting with a delegation of prominent industrialists, which led by Chairman Federation of Pakistan Chambers of Commerce (FPCCI) Mian Anjum Nisar called on him here at the PM OfPice.

Telecom imports increase by 19.03pc KARACHI

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During the meeting, various proposals regarding the enhancement of exports, incentives for industrial zones, tax reforms, infrastructure development and measures for reducing trade dePicit were put forward by the

german investment to strengthen punjab industry: minister

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elecom imports into the country increased by 19.03 per cent during the first quarter of current fiscal year (July-September) as compared to the same period of last year, according to Pakistan Bureau of Statistics (PBS). According to the data provided by the PBS, Tele Com worth $450,165 were imported during the first quarter of current year as compared to $378,194 of last year. Mobile Phone worth $245,203 was imported during the first quarter of current year as compared to $198,205 of last year.

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participants. The Prime Minister reiterated that industrial consumers would be provided with uninterrupted gas and power supply. He emphasized that the government was always open to suggestions from the

business community. The Prime Minister further added that infrastructure development for special economic zones was being undertaken on priority basis. The business community appreciated and acknowledged the special focus of the government towards sustained power and gas supply for the industrial sector. Moreover, the representatives also lauded the government for restoring law and order in the country that has resulted in improved investor conPidence.

Proposals regarding the Pinancing mechanism for encouragement of local Small and Medium Enterprises (SMEs), production of traditional items, facilitation in licensing processes, rationalization in tax regimen and establishment of a think tank for annual budget were also discussed during the meeting.

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LAHORE

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rovincial Minister Industries Commerce & Trade Sheikh Alla-ud-din said that as a result of GSP plus status, there is a huge potential for enhancing Pakistan’s exports to Germany. He said that Germany is Pakistan’s 5th largest export destination and there was a need to build relations to enhanced technical education in Pakistan. He expressed these views while chairing a meeting for explor-

ing potential areas of collaboration between Germany and Punjab. Punjab Board of Investment and Trade (PBIT) CEO, Secretaries Industries, Transport, Energy and representatives of TEVTA, P&D, and PVTC were also present. The minister said that the Punjab chief minister had constituted a committee to put up recommendations to enhance cooperation between Punjab and Germany in different sectors. Pakistan’s main exports to Germany are textiles, leather goods, medical instrument, Basmati rice, carpets and jewellery.

There are more chances to en-

hance bilateral relations & trade statistics with Germany and Germany is the major FDI investor in Pakistan.

Some of the Germans institutions are MAN Diesel, Merck, Hoechts, Bayer, BASF, Siemens, Linde, Metro etc. they also briefed that Germany support in technical Pield will be more benePicial as compared to China and Japan.

Germany will provide Buses and Trucks and also promote technical education in Punjab. The minister said that Germany has much experience in dairy industry and support of Germany will be benePicial to strengthen the Industry of Punjab.

Businessmen panel to promote industrialization ISLAMABAD

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usinessmen Panel (BMP) urged the government to devise a policy to promote industrialization for economic prosperity in the country.

BMP Chairman Mian Anjum Nisar has called for revisiting country’s trade policy as country exports decline in three years, citing that even Bangladesh exports jumped from US $ 24 billion to US $36 billion. He said: “We want to fully support the government’s initiatives aimed at promotion of trade and industry, however, the government should also resolve our problems on priority.” He mentioned that chambers of commerce and trade associations should have been consulted while imposing regulatory duty on 731 items, adding that it could increase of cost of doing business and encourage smuggling. Mian Anjum also thanked the government for speedy completion of projects under China-Pakistan Economic Corridor (CPEC). He also called for making Special Economic Zones (SEZ) offered in CPEC functional as early as possible so that private sector of Pakistan may construct industries there. The BMP Chairman also called upon the Federal Board of Revenue to put in place a workable mechanism to release sales tax claims which was much needed to rotate the financial circle of the businessmen.

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Annual revenue generated by iT industry reaches $3.5b ISLAMABAD

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akistan’s IT industry has demonstrated positive growth trends for the last fourteen years with 100% growth in export earnings as total annual revenue of Pakistan’s IT Industry is nearing $3.5 billion.

Managing Director Pakistan Software Export Board (PSEB)

Iftikhar Shah told APP that as a result of tax exemption and incentives, Pakistan’s IT exports have grown to an estimated $2.9 billion which includes Pakistani freelancers estimated to be earning more than $300 million annually.

Pakistani domestic market for IT & IT Products and services is also strong, estimated at over $500 million in annual revenue, and growing rapidly. Total annual revenue of Pakistan’s IT Industry is nearing

$3.5 billion, he added.

He said, to improve perception of Pakistan in strategically important international markets and in order to provide maximum marketing opportunities to Pakistani IT companies, costly Pinancial subsidies are offered in order to enable participation by Pakistani IT companies at international trade fairs.

PSEB also organizes trade delegations comprising of Pakistani IT companies in order to enhance collabora-

tion and cooperation between Pakistan’s IT sector and relevant entities in countries important to Pakistan’s IT sector. With the support of IT ministry and PSEB Pakistani companies have repeatedly won recognition at international forums and count world’s largest and most reputable entities among its regular clients. At yearly APICTA Awards, Pakistani IT companies have consistently won top awards. Pakistan is ranked as the 4th most popular country for freelancing

in the Online Labor Index published in 2017 by Oxford Internet Institute (OII) and is consistently ranked among the top destinations for ICT outsourcings a result of strong government efforts and stellar commitment to the growth of the IT sector in Pakistan. The Minister for IT & Telecom Anusha Rahman Khan has constituted a multistakeholder High Level Executive Council Forum (ECF) to work on how to increase IT & ITES exports as part of the government economic.

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BMP for improved image of FPCCI to restore confidence of trade bodies KARACHI: The Business Men Panel (BMP) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and its allies Pakistan Business Group would help enhance the country’s exports and improve image of the apex trade body and regain the lost status of business community as this is need of the hour to restore the confidence of the federation members trade bodies. The contesting group has textile sector, among its 22 priorities, owing to the sector’s importance and its contribution to the national economy and exports, says a statement. It said that the group vows to get reduced taxes and input costs of textile sector. Besides, establishment of industrial zones, promotion of hotel industry, promotion of precious gems and stone sector, resolution to the problems of commercial importers of raw material and ghee and oil industry.

SAArc chambers collaboration with china will promise prosperity in region

Friday December 8, 2017

Chambers

icci shows concerns over acute water shortage

ISLAMABAD

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he business community leaders from South Asian countries have vehemently urged for deeper economic cooperation with China saying that this collaboration will usher an era of progress, prosperity, development, economic growth and welfare of the people of the region. Talking to high level trader delegation from SAARC countries here Saturday, Vice President SAARC Chamber Iftikhar Ali Malik said China-South Asia economic cooperation would change the global economic order to add prosperity in the region,” said a press release issued here. He said South Asia is mired in several crisis and conflicts at the mo-

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ment due to various unresolved political and geographical factors and all these issues would be resolved effectively through strong regional connectivity and business to business contacts. Highlighting the role of China in building South Asian economy, he said China is the world’s second largest economy and a global power. It has huge foreign reserves and is massively investing in infrastructure in different parts of the world. The cash-strapped SAARC is in the dire need of money to tap into its natural resources. “China’s entry will undoubtedly bring dramatic economic changes to the region and the life of its people,” he added. He said since the creation of this platform in 2006, the bilateral trade between China and the South Asian countries paced with tremendous growth rate of 15 percent annually and from mere 25 billion dollars in 2006, increased to 113 billion dollars in 2017.

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howing concerns over the acute water shortage issue in the federal capital, Sheikh Amir Waheed, President, Islamabad Chamber of Commerce and Industry has called upon the relevant authorities to take urgent measures to resolve this chronic issue as the residents of many sectors in Islamabad including the business community were facing great problems due to shortage of water.

He said the water shortage issue in the federal capital has been worsening since long as the water level in Simly and Khanpur dams was decreasing day by day. He said the water shortage was also taking a toll on the growth of business and industrial activities in Islamabad and needed urgent attention of the authorities to resolve it.

He said that with the significant rise in the population of Islamabad, the requirement of water has also increased manifold, but the supply remained around 54 to 55 Million Gallons Per Day (MDG) making

supply of water a serious issue of the federal capital.

Sheikh Amir Waheed said that Metropolitan Corporation Islamabad was planning for water supply project from Ghazii Brotha dam which required laying of around 50 kilometers long pipeline, but it would take years as the MCI has to acquire land from Punjab and KP to materialize this project. He stressed that MCI

should work out some short term solutions to cope with rising water crisis issue in Islamabad and to provide some relief to the residents. Muhammad Naveed, Senior Vice President and Nisar Mirza Vice President, Islamabad Chamber of Commerce and Industry said that tube wells in many sectors of Islamabad were out of order while the civic bodies had limited water tankers to supply water to

call for eDB under professional head LAHORE

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he Founders Group of Lahore Chamber of Commerce & Industry (FG-LCCI) demanded the government appoint a competent professional head to Engineering Development Board (EDB), instead of shutting it down as it would discourage investors.

The demand was raised at an urgent meeting of Founders Group that was attended by FG leaders Syed Mohsin Raza Bukhari, Mian Muhammad Ashraf, Ijaz Butt, Iftikhar Ali Malik, Tariq Hameed, Sheikh Mohammad Asif, Mian Misbahur Rehman, Shahid Hassan Sheikh, Mian Muzaffar Ali, Farooq Iftikhar, Ijaz A Mumtaz, Abdul Basit, Khawaja Khawar Rasheed, Zeshan Khalil members of the group.

They said that closure of Engineering Development Board would also hamper the growth of country’s engineering industry, besides reducing government’s ability to regulate the industry due to the resulting lack of expertise, leading to shortage of investments especially the vending sector.

Founders Group leaders said that Engineering Development Board (EDB) was established to oversee multiple areas related to engineering sector. An important area where EDB had contributed the most was the automobile sector. It oversaw the implementation of Auto Policy, based on predePined policy document guidelines.

They said that it supported the vendor industry by handling various Statutory Regulatory Orders by assuring local content enhancement and curtailment of rollback, based

on the government’s policy guidelines. In order to improve the circumstances, they suggested, a professional Chief Executive OfPice should be appointed on the EDB, based on capability to handle such an organization, adding that the closure of an institution was not a solution to the problems.

Meanwhile, Lahore Chamber of Commerce & Industry President Malik Tahir Javaid has demanded total withdrawal of regulatory duty.

In separate meetings with Federal Minister for Industries & Production Ghulam Murtaza Khan Jattoi, Prime Minister’s Assistant on Revenue Haroon Akhter, and Member Customs FBR Zahid Khokhar, LCCI President apprised them of the panic caused due to regulatory duty. Malik Tahir Javaid was of the view that the regulatory duty regime will not only destroy the exporting sector.

the citizens. Due to this situation, residents of affected sectors were facing high charges from the private water tankers for supply of water. They stressed that CDA and MCI should take urgent measures to repair all faulty tube wells and ensure availability of more water tankers to meet the rising water needs of the residents so that they could get rid of this serious issue

Hcci appreciates establishment of nicVD unit he Vice President Hyderabad Chamber of Commerce and Industry (HCCI) Ziauddin has appreciated the establishment of the Unit of National Institute of Cardio Vascular Diseases (NICVD) at Liaquat University Hospital Hyderabad. In a statement here on Monday, he said that existing department of cardiology has failed to cater the requirements of heart patients and have no opportunity except to go Karachi for treatment. After establishment of NICVD Unit, the precious lives of the patients having cardio vascular disease could be saved without any delay, he said and thanked the Sindh Chief Minister and Sindh Health Minister for establishing NICVD Unit in Hyderabad.

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FIU Sargodha impounds various Non-Duty-Paid goods FAISALABAD: The Customs Field Intelligence Unit (FIU) Sargodha has seized a big quantity of non-duty-paid miscellaneous items worth Rs2.2million involving duties and taxes of Rs1.5million during a successful raid. Sources told Customs Today that the FIU team intercepted a Mazda trailer bearing registration No: TLE-939 near Mianwali toll plaza, M.M Road, Mianwali. The FIU team checked the vehicle and recovered 480-kg of Indian red-chili, walnuts weighed 2625-Kg made in China.

Friday, December 8, 2017

CUSTOMS BULLETIN

Hyderabad customs earns rs1574.431 million: collector Akhlaq HYDERABAD ASLAM AnJuM QureSHi www.customsbulletin.com

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he Model Customs Collect orate (MCC) has generated Rs 1574.431million customs duty and taxes during Pirst 27 days of November 2017-18 Sources told Customs Today that the department collected Rs 418.911million under the head of customs duty, Rs 1141.660million sales tax, Rs 0.500million federal excise duty (FED) and Rs 13.360 million withholding tax (WHT) during the above mentioned period.

The MCC Hyderabad received Rs 1574.431million in 27 days of November 2017 and assigned the target with the collection of Rs 441.880million customs duty (CD), Rs 1208.600million sales tax, Rs 1.330million federal excise duty and Rs 31.160million withholding tax during June so the MCC has fetched a total of Rs 1682.970million to the national exchanger.

The major sources of tax revenue remained Hyderabad Dry Port State Warehouse, SukkurLarkana Division, M/s Rema Cooking Oil and other. The Anti-Smuggling Organization (ASO) also seized non-duty-paid goods worth

millions of rupees.

Sources told that under the supervision of Collector Akhlaq Ahmad Khattaq, Additional Collector (HQ) Dr Aamer Nawaz Hamid Deputy Collector Basit Hussain, deputy collector dry port principal

appraiser and Statistical Revenue ASO and others played an important role in the revenue collection, officials said.

Model Customs Collectorate (MCC) Hyderabad, Anti-Smuggling Organizations (ASO) Hyderabad,

Sukkur and Larkana Divisions aborted various smuggling attempts and made big seizures of non-duty-paid items vehicles including ix Prado, Toyota crown car tobacco pan masala baby Hot suits made in Iran cloths, fabrics, nar-

cotics 451 kilograms of chars cigarettes, mobile phones baby upper wrist watches . perfumes (itar) , items in different operations worth millions of rupees during 27days the month of November financial year 2017-18.

court reserves verdict on nAB’s plea seeking to declare Dar as absconder ISLAMABAD

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n accountability court (AC) of Islamabad reserved its judgment on the National Accountability Bureau’s (NAB) request seeking to declare Finance Minister Ishaq Dar a proclaimed offender for not appearing before it in a reference related to allegedly possessing assets beyond known sources of

income.

The court is likely to announce its judgment on December 11.AC Judge Muhammad Bashir resumed hearing of the reference Piled by NAB against Ishaq Dar in compliance with the Supreme Court’s order in the Panama Papers case.

NAB Investigation OfPicer Nadir Abbas submitted the implementation report regarding the process to declare Ishaq Dar a proclaimed offender. The summon notices were displayed at the court’s notice board and outside Dar’s two residences at Gulburg, Lahore and Ministers Colony, Islamabad.

Earlier, Dar’s counsel Qosain Mufti submitted a fresh medical report of his client and contended that Ishaq Dar would undergo an MRI test next week. Judge Muhammad Bashir remarked that the

court could establish a medical board, if Dar was in the country.

The accused had not appeared before the court for more than a month, he added. Qosain Mufti said if the court desired, Pakistan’s High Commission in Britain could arrange medical examination of his client. The court could issue directives in that regard, he added.

His client had not gone in hiding, he argued. Mufti contended that the NAB had not got veriPied the medical reports of his client from abroad and requested the court to grant more time to Ishaq Dar to appear before it.

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However, the NAB prosecutor questioned as to why Ishaq Dar went abroad if his disease was not diagnosed. Dar was deliberately not appearing before the court, he added. The prosecutor said the angiography report of the accused had not been submitted to the court so far. The defence side should inform the court about the nature of Dar’s ailment, he added.

He requested the court to declare Ishaq Dar a proclaimed offender for non-appearance. After hearing the arguments from both sides, the court reserved its judgment regarding the matter.