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Karachi, Tue February 20, 2018

ISLAMABAD

M FAIZAN

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pecial Assistant to Prime Minister on Revenue/Federal Minister Haroon Akhtar Khan has said the government values the contribution of tax bar associations in the country towards broadening of tax base and their proposals on improving the tax regime would be welcomed for the

next budget. “We appreciate the good work being done by the tax bar associations and it is our endeavor to work closely with them for broadening of tax base and further improving the tax regime,” he said while talking to a delegation of Pakistan Tax Bar Association (PTBA) that met him at the FBR House. Haroon Akhtar Khan said tax bar associations served the purpose of think-tanks and their input and proposals would be welcomed in the routine taxpayers

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outreach activities and seminars conducted by FBR for broadening of tax base and improving tax collection. The PTBA ofVicebearers congratulated Haroon Akhtar Khan on his elevation as federal minister and commended him for impressive revenue collection during the last four years and for acting as a bridge between the government and the business community. They shared with him a plan of action for BTB seminars, outreach and better collection of taxes. They also invited him to chair a workshop on direct and indirect taxes to be organised by PTBA in Lahore in the coming month.

FBR detects two cases of tax evasion worth Rs 693.72m by power Cos

Adjudication-II recovers Rs 5.25m from M/s Farooqi Associates

Collector Preventive Faiz Ahmad distributes work among employees

Economic growth can help create new opportunities

Customs impounds 107 bags of LED TVs, 10 cartons of cigarettes, car

FBR has detected two alleged cases of tax evasion to Rs 693.72m | See pAge 02 |

Customs Adjudication-II showed outstanding performance by taking | See pAge 03 |

Collector Faiz Ahmad distributed load work among diﬀerent employees | See pAge 04 |

Abbasi has said the economic growth would help create new opportunities | See pAge 14 |

ASO, Customs, has taken into possession 107 sacks of imported smuggling LED | See pAge 16 |

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FST seeks reply on complaints ﬁled by FBR employees Tuesday, February 20, 2018

Islamabad

ISLAMABAD: The Federal Service Tribunal during recent week issued fresh directives to submit relating record of cases being contested by employees of the FBR. FST Chairman Justice (r) Sayed Zahid Hussain and Dr Nazir Saeed heard three cases ﬁled by M Suleman Javed, Muhammad Nawaz, Muhammad Shakeel Akhtar and others. Muhammad Sulaman Javed had prayed the tribunal to ensure implementation over its already given decision; Muhammad Nawaz had challenged dismissal from services, and Muhammad Shakeel Akhtar had challenged removal from services.

FBr detects two cases of tax evasion worth rs 693.72m by power cos

ISLAMABAD

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M FAIZAN

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ederal Tax Ombudsman (FTO) Mushtaq Ahmed Sukhera has asked Federal Board of Revenue (FBR) to simplify procedures to attract taxpayers and improve tax-to-GDP ratio. Addressing a gathering of exporters in Faisalabad, the FTO said FBR has been asked to introduce a simple mechanism for bringing new taxpayers into tax net. He said the system should be as easy as people come into tax net voluntarily instead of avoiding it. He said that the FTO oﬃce was taking measures to resolves taxpayers’ issues through independent investigations about tax maladministration. He said that textile industry holds foremost importance in the economy with its 57 percent share in country’s exports and 8.5 percent in GDP. Textile exporters are major contributors to the economy and his oﬃce will leave no stone unturned to address the issues of exporters and industrialists, he said. The FTO expressed disappointment over widening of trade deficit and heavy reliance upon foreign borrowings, adding the country’s exports have been declined from 25 billion dollars to 21 billion; whereas export growth of other countries in the region has increased manifolds.

he Federal Board of Revenue (FBR) has detected two alleged cases of tax evasion amounting to Rs 693.72 million by two power generation companies. According to details, Faisalabad Electric Supply Company (NTN 3048930-0) registered with Regional Tax OfVice Faisalabad purchased electricity of Rs 6,139.09 million from different IPPs and National Transmission and Dispatch Company. Against these purchases of electricity, the registered company had shown sale of electricity of Rs 3,622.52 million. Electricity cannot be stored and FESCO had concealed its sale which resulted in loss of Rs 187.09 million to national exchequer under the head of sales tax. Likewise another big company M/s Northern Power Generation Company Limited (NTN 30497175) registered with Regional Tax OfVice Multan had declared less supplies of electricity to M/S NTDC as compared to electricity purchased by the NTDC in its sales tax return. The position reVlected that registered company Northern Power Generation had concealed its sales and ultimately resulted in short realization of sales tax of Rs506.63 million. Federal Board of Revenue has instructed to the concerned Regional Tax OfVices to expedite the le-

Fto asks FBr to simplify procedure to attract taxpayers

gal proceeding against companies and Vix responsibility against the person at fault. It is important to mention here that according to Section 3 (1) (a) read with section 2(46) of the Sales Tax Act, 1990 there shall be charge, levied and paid sales tax at rate of 17 percent of the value of taxable supplies made by a registered person in the course or furtherance of any taxable activity carried on by him. Meanwhile, Federal Board of Revenue (FBR) has allowed sales tax

zero-rated purchases of petroleum products and coal to M/s Kohinoor Mills Limited – a leading textile unit – for the in-house consumption and for manufacturing purpose. The company has been allowed the zero-rated purchase of 290 metric tons furnace oil and 2,256 liters of diesel oil from M/s. Pak Arab ReVinery Limited and 1,258 metric tons of coal from M/s Agro Trade (Pvt) Limited. The above mentioned quantity has been allowed on monthly basis and zero-rate purchases are allowed for a period of

twelve months. The FBR, however, said the boilers and generators for which furnace oil, diesel oil and coal have been purchased shall be installed at the declared manufacturing premises of the registered person. The FBR directed the chief commission, Large Taxpayers Unit (LTU) Lahore to monitor purchase and consumption of furnace oil, diesel oil and coal requiring the registered person to furnish monthly statement of zero-rated purchases and consumption in order to verify/prevent misuse of zero-rated facility.

Islamabad Airport diﬃcult to be operational by due date of March 23

ISLAMABAD

tArIQ DerYA

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he newly construced Islamabad Airport, which was due to be inaugurated on 23rd of March 2018, is hard to be operational by the said date, CT learnt. According to details given by Nisar Ahmad Phularwal, Additional Deputy Collector, Air Fright Unit (AFU) Islamabad, while talking with Customs Today during an exclusive

interview, said the construction work of the new Islamabad Airport is in progress and expected to be completed soon. Replying to a query that where the investigation has reached against heroin smuggler Candy Brayn, he said that, during the month of January 2018 at the Benazir Bhutoo International Airport Islamabad, the customs ofVicials arrested a Christian Pakistani national identiVied as Canedy Brayn at the Islamabad Airport carrying 1.6 kilo-

gram of heroin. The accused was attempting to smuggle drugs into Sharjah, UAE. The customs ofVicials recovered heroin and crystal methamphetamine, more popularly known ‘Ice and Glass’, concealed inside the lady shoes. He added that investigation of above said case is underway. He disclosed that the Investigation and Prosecution (I&P) Department has found during the investigation that a notorious international gang of smugglers, led by the brother-in-

law of Candey Brayn (accused) who is living abroad, is involved in said heroin smuggling case. The customs has prepared a roadmap for tooking into the custody of the main smuggler and other gang members involved in above said heroin smuggling case. Responding to another query regarding the shortfall of revenue during the month of January 2017-18, the Additional Collector quoted “it is a historical fact that, during the month of January, assigned revenue target

under the head of Customs Duty (CD) cannot be achieved due to the completion of 2nd Quarter but the AFU will definitely meet its revenue target assigned for the month of February 2017-18”, he assured. Replying to yet another query, Phularwal said the AFU generated surplus revenue collection under the head of CD with an extra amount of Rs5million during the month of January FY17-18 against the same period of correspondinge FY16-17.

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Customs values of scents, toilet sprays revised KARACHI: Customs Valuation Director Iqbal Muneeb, through Valuation Ruling No.1254/2018, has revised the customs values of scents and toilet sprays. Earlier, the customs values of scents and similar toilet sprays and mount head thereof (empty sprayers/atomizer made of plastic) were determine vide Valuation Ruling No.1139/2017. The director general, through order in revision, directed to conduct comprehensive valuation exercise to re-determine the values of the goods afresh.

court awards imprisonment to suspect in diesel smuggling case

Tuesday February 20, 2018

Karachi

Adjudication-II recovers rs 5.25m from M/s Farooqi Associates

KARACHI

M B rANA

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ustoms Court Judge Syed Faiz Rasool Rashdi has awarded 18 days imprisonment and a fine of Rs 100,000 to a suspect namely Nazar Khan who was booked for attempting to smuggle 19,850 liter non-duty paid foreign origin high speed diesel. During the hearing, the suspect appeared before the court along with his counsel and moved a petition for pleading guilty. After hearing the arguments, the court framed charge against him who left himself on the mercy of the court, therefore, the court awarded him 18 days imprisonment and a fine of Rs 100,000 as the undergone period.

M/s pantagon challenges Sro No 1035/2017 in Shc KARACHI

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he Sindh High Court (SHC) has directed customs oďŹ&#x192;cials to file their para wise comments on a constitutional petition filed by M/s Pantagon International (Private) Limited, challenging SRO No 1035/2017 over imposition of regularity duty on import of various items, including steel sheets and other goods. A two-member bench headed by Justice Munib Akhtar was hearing the petition. During the hearing, the court also directed them to file their respective para wise comments on the next date of hearing. Earlier, the counsel for the petitioner stated that it is engaged in the lawful business of import of steel sheets and other similar goods. He submitted that Secretary Revenue Division issued notification dated 16/08/2017.

KARACHI

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ustoms Adjudication-II showed outstanding performance by taking actions against tax defaulters and issued many notices during the month of January. Source told Customs Today that Customs Adjudication-II served a Vinal notice on a defaulter company named M/s Sabiha Leather and recovered Rs 5.25 million from M/s Farooqi Associates Karachi. M/s Sabiha Leather was allegedly involved in tax evasion. The company imported different types of chemicals (used to reVine the leather) on November 28, 2017 and used the wrong PCT heading. After a careful investigation, the Customs Adjudication-II issued a Vinal notice to the company and cleared the outstanding amount of Rs 4.55 million. Source said that another company M/s Farooqi Associates got cleared a consignment of heavy motorcycles parts (new and used) on October 28 and evaded tax amount of Rs 5.25 million. After the investigation, Customs Adjudication-II served a show cause notice to the company on November 20, but it failed to clear the outstanding tax amount. Collector Customs AdjudicationII issued a final notice to the company on December 18, 2017. But company took time to submit the evaded amount. After receiving

the notice, the company deposited Rs 5.25 million in favor of the Customs department. Meanwhile, The Customs Export has recovered the evaded amount of taxes and duties of Rs10.08million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that, during scrutiny of the import data, it was revealed that M/s Sulemania Traders Interna-

M/s Sabiha Leather was allegedly involved in tax evasion. the company imported diďŹ&#x20AC;erent types of chemicals (used to refine the leather) on November 28, 2017 and used the wrong pct heading

pcA detects tax evasion of rs 15.14m by MkS traders

KARACHI

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he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 15.14 million by M/s M.K S Traders Karachi, it is learnt here. Sources told Customs Today that M/s M.K S Traders Karachi imported a consignment of role of printed papers, printed sheets and different size and colour of printer papers, and got it cleared from the PICT

Karachi vide GDs on October 22, 2017 by paying customs duty at 6 percent after claiming the beneVit of the SRO 562/2007. However, the subject items were correctly classiViable under the PCT 2407.5485 attracting customs duty at 10 percent and income tax at 8 percent, thus, by way of mis-declaration of classiVication, the company evaded/short-paid Rs 15.14 million. The goods were cleared by Head Examiner Shamsuddin. Sources told that the importer violated the provisions of Section 32 (6) & (8-A) of the Customs

Act-1969, Section 17 read with Section 28 of the Sales Tax Act-1990 and Section 142 of Income Tax Ordinance 2001 punishable under clauses (244) and 147 of Section 471(9) of the Customs Act-1969, Section 82 of the Sales Tax Act-1990 and Section 89 & 178 of Income Tax Ordinance 2001 and Section 7-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.

tional Karachi availed undue benefits and concessions after importing different consignments by misusing the SRO 567 through Examiner Raheel Waris. Sources further told Customs Today that the company was allegedly involved in the tax evasion of Rs6.23million. After detecting the tax evasion, the Customs Export served on it a final notice on December 18, 2017 to deposit the evaded amount within 14 days.

pak rupee makes recovery in open market he Pakistani rupee made recovery against the US currency in open market and remained firm in interbank. As per the local money market, the dollar lost 15 paisas in open market for buying at 111.60 and for selling at 111.90, while remained firm in interbank for buying at 110.30 and for selling 110.50.

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Dr Ayesha to attend global conference in US Tueday February 20, 2018

Lahore

LAHORE: Punjab Finance Minister Dr Ayesha Ghous Pasha will attend the First GlobalConference of the Platform for Collaboration on Tax under the umbrella of Taxation and Sustainable Development Goals (SDGs), organised by World Bank Group in New York. Over 350 participants including development partners of World Bank, businessmen and representatives from civil society will be present at the occasion. Ayesha Ghous Pasha will talk about the role of taxation in achieving the SDGs, smart taxation for better gender equality and tax reforms (challenges and solutions) during the country session. She will also participate in parallel discussions.

Fto seeks record from parties to decide case LAHORE

SAJID NAwAZ

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he Federal Tax Ombudsman (FTO) has heard an appeal Viled by M/s Adeel Packages Private Limited against Corporate Regional Tax OfVice (CRTO) and put off the hearing until the next date. The FTO also ordered the production of all relevant record to decide the case. FTO Adviser Mian Munawar Ghafoor heard the case in which counsel for appellant argued that the Corporate Regional Tax OfVice (CRTO) has failed to release the tax refunds since two years claimed by the company. He said the RTO has been collecting excessive taxes from M/s Adeel Packages Private Limited for the last two years. He approached the com-

Imran hits out at FBr for failing to make necessary reforms akistan Tehreek-e-Insaf (PTI) Chairman Imran Khan has claimed that he is the only Pakistani who generates Rs9 billion annually from the country. “I am the only Pakistani who collects Rs9 billion annually to meet expenses of my humanitarian projects. This means people are willing to give their money, but to those people or institutions, which they trust,” said Khan while addressing textile-sector industrialists. He argued that people in Pakistan were willing to pay taxes, but the Federal Board of Revenue (FBR) lacked the capacity due to the absence of institution-building initiatives on the part of the government. That resulted in imposition of indirect taxes that were hurting the honest taxpayers and industrialists, he added. –CB Report

missioner concerned many a time for the release of refunds but the CRTO ofVicials did not entertain the requests, even after the lapse of a reasonable time. At the end, the company decided to approach the FTO seeking his intervention in the case. The counsel appealed to the FTO advisor to direct the CRTO to clear the refund claims. The counsel further said the CRTO should refund the additional collection of taxes by the end of Viscal year. Delay in release of refunds puts the burden on the taxpayer, he said, adding that the CRTO Lahore should audit the case and release the extra amount collected from the taxpayer. After hearing the arguments from both sides, the FTO advisor adjourned the case of M/s Adeel Packages Private Limited to the next date for further hearing and directed the parties to appear on said date to present arguments in the case.

collector Faiz Ahmad distributes work among employees

LAHORE

M hAYAt

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ollector Customs Collectorate Preventive Faiz Ahmad distributed load work among different employees with immediate effect. According to a noti-

Vication Deputy Collector Mohammad Hassan Farid will also look after the matters pertaining to imports at Land Freight Unit (LFU) Wagha Passenger Facilitation Center Wagha with immediate effect. Deputy Collector Taqueer Ahmad Dar will also perform his duties at Air Freight Unit of Allama Iqbal International Airport and Assistant Collector Omer Latif will look after

all the matters pertaining to exports at Land Freight Unit Wagha and Railway Station Wagha. The notiVication further stated that Assistant Collector Muhammad Ejaz Shaheen apart from his present assignment will also look after all the matters related to General Post OfVice (GPO). Additional Collector Muneeza Majeed will also perform his duties at Land Freight Unit, PFC Wagha and Railway Station T-10. According to notiVication Additional Collector Tayyaba Kayani Moeed will look after the matters relating to his current assignment at Headquarters, Anti Smuggling Organization (ASO), Investigation and Prosecution (I&P), Law, auction cell, State Warehouse, CAO, and General Post OfVice. It is necessary to mention here that Collector Customs Preventive Faiz Ahmad will also undertake more transfers and postings in near future. Sources told that these measures are being taken by the collector to improve the performance of the Collectorate.

customs tribunal reserves judgments IrSA releases 80,300 cusecs water of three cases out of 15 ones the inVlow and outVlow of water he Indus River System Au-

he Customs Appellate Tribunal (single and double) Bench heard 15 cases. and adjourned all for different dates except three ones whose verdicts were reserved and which are expected to be announced soon. The Single Bench-I, comprising Muhammad Shabbir Gujjar, Member Judicial, heard eight cases including Muhammad Amin versus Customs Mulnta, Muhammad Nawaz versus Customs Lahore, Directorate Intelligence and Investigation Faisalabad versus Azeem Nasir, Sungro Pri-

vate DG Khan versus Customs Multan. The same bench heard further cases which include Khurram Saeed versus Customs Lahore, Ahmed Fine Textile versus Customs Multan, Collector Customs Lahore versus Abrab Aslam and Directorate of Intelligence and Investigation Lahore versus Suleman. The Division Bench-II, comprising Omer Arshad Hakeem, Member Judicial, and Imran Tariq, Member Technical, heard seven cases versus Muhammad Amin, H Ali Constructions versus Customs Lahore. –CB Report

thority (IRSA) released 80,300 cusecs water from various rim stations with inVlow of 43,300 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1422.90 feet, which was 42.90 feet higher than its dead level of 1,380 feet. Water inVlow in the dam was recorded as 15,800 cusecs and outVlow as 40,000 cusecs. The water level in the Jhelum River at Mangla Dam was 1087.25 feet, which was 47.25 feet higher than its dead level of 1,040 feet whereas

ZtBL recovers rs107.579 billion

LAHORE

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arai Taraqiati Bank Limited (ZTBL) has recovered an amount of Rs 107.579 billion from its borrowers by the end of the year 2017, showing an increase of 5.17 percent as compared to the corresponding period of last year.

The bank has recovered an amount of Rs 102.281 billion during same period of the year 2016, senior ofVicial of the ZTBL. The bank had disbursed an ever highest amount of Rs 97.128 billion among 345,131 borrowers across the country including Azad Jammu and Kashmir and Gilgit Baltistan during the period. An amount of Rs 22.700 billion was disbursed for development

category of loans whereas, an amount of Rs 74.429 billion was disbursed as production loans in order to enhance agriculture and livestock production in the country, he added. Besides, the bank recovered an amount of Rs 1.876 billion of SAM loans, whereas it had fetched deposit of Rs 71.00 billion as on December 31, 2017, the ofVicial added. He further informed that being the largest agriculture lending insti-

was recorded as 3,500 cusecs and 22,000 cusecs respectively. The release of water at Kalabagh, Taunsa and Sukkur was recorded as 47,000, 36,500 and 4,100 cusecs respectively. Similarly from the Kabul River, 15,400 cusecs of water was released at Nowshera and 2,900 cusecs from the Chenab River at Marala. Similarly from the Kabul River, 15,400 cusecs of water was released at Nowshera and 2,900 cusecs from the Chenab River at Marala. –CB Report

tute of the country , the bank has successfully maintained the highest credit and entity rating of AAA/A-1+ as evaluated by JCR-VIS. The spokesman of the bank further informed that besides credit disbursement and recovery the bank has also introduced several new initiatives in order to promote agriculture and livestock sector as well as agro related business in the country.

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he Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 6.58 million by M/s JK Traders Hyderabad, it is learnt here. Sources told Customs Today that M/s JK Traders imported a consignment of paper sheets, printers and photo copier papers and magazine size paper rolls, and got it cleared from the PICT Karachi vide GDs on October 19, 2017 by paying customs duty very low at 8 percent after claiming the benefit of the SRO 565/2007. However, the subject items were correctly classiViable under the PCT 2509.2147 attracting customs duty at 12 percent and income tax at 10 percent, thus, by way of mis-declaration of classiVication, the company evaded/short-paid Rs 6.58 million. The goods were cleared by Head Examiner Waseem Khan. Sources told that the importer violated the provisions of Section 25 (9-A) of the Customs Act-

Tuesday, January 20, 2018

1969, Section 29 read with Section 42 of the Sales Tax Act-1990 and Section 128 of Income Tax Ordinance 2001 punishable under clauses (258) and 117 of Section 247(6) of the Customs Act-1969, Section 54 of the Sales Tax Act-1990 and Section 81 & 254 of Income Tax Ordinance 2001 and Section 4-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001. It is necessary to mention here that Post Clearance Audit detected seven more cases in current month of February. Meanwhile, The Directorate of Customs Post Clearance Audit (PCA) has detected duties and tax evasion of Rs 9.58 million allegedly by M/s Wajih Sanitary Hyderabad, it is learnt here. Official sources told Customs Today that M/s Wajih Sanitary Hyderabad imported a consignment of imported sanitary items under the PCT Heading 5847.2508 and got it cleared from Port Qasim Karachi vide GDs on October 22, 2017 by paying customs duty at 8 percent after claiming a benefit of SRO 568/2007 by the

hand of Examiner Imran A Khan. However, the subject item is correctly classifiable under the PCT 2548.2509 attracting customs duty at 12 percent and income tax at 14 percent. Thus, by way of mis-declaration of classification, M/s Wajih Sanitary Hyderabad evaded/ short-paid Rs 9.58 million. So the importer has violated the provisions of Section 58 (4) & (7B) of the Customs Act-1969, Section 4, 7 read with Section 57 of the Sales Tax Act-1990 and Section 149 of Income Tax Ordinance 2001 punishable under clauses (8) and 48 of Section 169(8) of the Customs Act1969, Section 32 (7) of the Sales Tax Act-1990 and Section 140 & 146 of Income Tax Ordinance 2001 and Section 7-A of the Sales Tax Act-1990 read with chapter X of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of Sales Tax by the importers) and under relevant provisions of Income Tax Ordinance 2001. Accordingly, an audit observation was issued to M/s sWajih Sanitary Hyderabad for explaining and clarifying as to on what basis they have avoided/evaded the taxable duty and taxes.

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eDItorIAL

reforms in tax collection system

he government is still far from introducing structural reforms in the tax collection system aimed at not only to enhance tax net, but also rationalize the tax rates and plug the loopholes in the tax collection process. The recommendations of the Tax Reforms Commission are also awaiting implementation by the Tax Implementation Reform Committee led by none other, but Special Assistant to Prime Minister on Revenue Haroon Akhtar Khan. As it always happened in the past, the taxpayers are reportedly not taken on board by the authorities who matter. In the absence of any representation by the private sector, the process of taxation becomes a futile exercise and that also at the cost of the taxpayers. The recommendations extended by the business community are ignored most of the time if there are any. Ultimately, the game of hide and seek between tax authorities and taxpayers starts. In the current situation, a committee represented by the private sector, which has identified several areas of concerns, has not been taken on board. No one knows what the delays mean in the government circles, but the situation is shrouded in mystery. Though the political instability also has always its share of troubles in the making and breaking of laws, and the recommendations for introduction of forensic audit for major companies is still in the pipeline. The first step toward structural reforms should be to simplify the tax collection process. It should be as simple as paying utility bills every month. When authorities focus their attention on a particular sector to ensure full implementation of tax laws, the sector loses its utility. The tax collection system cannot be improved until laws are made to protect the businessmen from any kind of harassment. The laws should be equally applicable on all sectors of the economy and harassment of a businessman should be regarded as a crime. In most of the case, the potential taxpayers are ready to come into the tax net, but fear of exploitation and misuse of authority by some corrupt elements in government agencies force them to take other methods and avoid to become part of the tax paying community. The number of taxes also needs to be curtailed and the game of this tax and that should end.

external pressures on economy T

LAHORE

Dr AFtAB AFZAL

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he external debts of the country have crossed $85 billion mark in five years, but the government is still in process to get more assistance from the international donor agencies. The Pakistan Muslim League-Nawaz government had accepted a three year extended facility programme of over $6 billion from the International Monetary Fund in 2013. Unfortunately, the economy has been experiencing the same situation for the last two years. The incharge of finance and economy has left the country and the new entrants will take time to under-

stand troubling facts. The mandate of the current government is also going to end this year. The bleak performance of the economy only points out one fact, the government is facing financial crunch and may be resort to IMF once again at a time the World Bank and the Asian Development Bank are reluctant to extend any considerable assistance to the government. The economy has gone back to square and the policymakers are unwittingly groping in the dark to find a clue to resolve the deepening economic crisis. The bubble of macroeconomic stability, which was the pet word of the former finance minister, has already burst. The donor agencies never approve

loans without attaching strings of their conditionalities. Some economists fear the pressure of the United States and India are costing heavily on the economy. The current IMF conditions are economic, which could turn into political any time under the pressure of US state department. Despite vast resources and political leverage, Pakistan is not like Iran to shrug off the pressure from all sides. Political instability is not a blessing, but curse on this nation. At a time the world powers are exerting all their pressure on Pakistan, the politicians are busy in catching each other by collars. The poor performance of the economy will soon bring the total

loan volume of the country to $100 billion. The current year is the election year and an interim government is expected to be set up in a few months. In this situation, it is difficult for the Abbasi government to restructure and reshape the economy. The country is facing economic and political uncertainties, including fiscal deficit, low exports and depleting foreign exchange reserves. The government has already performed poorly despite receiving $6.67 billion from the IMF and no one has been held responsible for the situation. Until an able leadership takes hold of the financial and administrative matters, there is a little hope the economy will bounce back.

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Zero-rated sales tax allowed on purchase of POL products, coal to textile unit ISLAMABAD: Federal Board of Revenue (FBR) has allowed sales tax zero-rated purchases of petroleum products and coal to M/s Kohinoor Mills Limited – a leading textile unit – for the in-house consumption and for manufacturing purpose. The company has been allowed the zero-rated purchase of 290 metric tons furnace oil and 2,256 liters of diesel oil from M/s. Pak Arab Reﬁnery Limited and 1,258 metric tons of coal from M/s Agro Trade (Pvt) Limited. The above mentioned quantity has been allowed on monthly basis and zero-rate purchases are allowed for a period of twelve months. The FBR, however, said the boilers and generators for which furnace oil, diesel oil and coal have been purchased shall be installed at the declared manufacturing premises of the registered person.

evaded taxes & duties retrieved from defaulter cos by customs export

Tuesday February 20, 2018

National

FBr’s Board-in-council lauds services of ex-member-Ir tanveer

KARACHI

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he Customs Export has recovered the evaded amount of taxes and duties of Rs10.08million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that, during scrutiny of the import data, it was revealed that M/s Sulemania Traders International Karachi availed undue benefits and concessions after importing diﬀerent consignments by misusing the SRO 567 through Examiner Raheel Waris. Sources further told Customs Today that the company was allegedly involved in the tax evasion of Rs6.23million. After detecting the tax evasion, the Customs Export served on it a final notice on December 18, 2017 to deposit the evaded amount within 14 days. After receiving the notice, the management of M/s Sulemania Traders International

ISLAMABAD

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special meeting of the Boardin-Council was held here at Federal Board of Revenue (FBR) HQ to pay homage and to bid farewell to former Member Inland Revenue (IR) Operations Khawaja Tanveer Ahmad (Inland Revenue Service/BS-21). The meeting was chaired by FBR Chairman Tariq Pasha and attended by members of the Board. In line with the tradition in the FBR, the recently retired ofVicer in BS-21 (in FBR HQ), was invited to this meeting to pay homage and to bid farewell to them by the Board-in-Council. Khawaja Tanveer Ahmad, who was invited to the meeting on special invitation, shared his views and work experiences during their careers in and outside FBR. Members of the FBR, in their individual remarks, hailed the services rendered by Khawaja and also shared their reminiscences of some pleasant memories while working together with the retired ofVicer. The FBR chairman highly appre-

ciated the services of the said ofVicer and his hard work and commitment to the organisation. The FBR chairman and all the members highlighted the moral values practised by outgoing ofVicer and unanimously praised the high level of integrity and honesty exhibited by them during his entire career. Pasha emphasised that the retired ofVicer with their enriched experience behind them must continue contributing to the society. He

wished him all healthy and prosperous life in future. The FBR managed to maintain over 19.5 percent growth in revenue collection during his tenure as Member IR Operations. Khawaja Tanveer Ahmad had rich experience of both the customs as well as Inland Revenue which enabled the Board to ensure taxpayers facilitation, compliance as well as achievement of the assigned targets. Khawaja Tanveer Ahmad had

worked as Director General, (Intelligence & Investigation) Inland Revenue, Islamabad. During his tenure as DG I&I IR the agency showed remarkable performance in framing cases against tax evaders in almost all leading sectors of the economy. One of the major initiatives taken by him is the creation of anti-money laundering cell and speedy actions against persons involved in money laundering.

Sc seeks 10-year income tax return records of ex-ptV MD ISLAMABAD

Karachi deposited the evaded amount in the oﬃcial account of the Customs Export on 1st of February. On the other hand, the management of the M/s Taj Waseem and Co also cleared Rs3.85million of taxes and duties. Sources told the correspondent that M/s Taj Waseem and Co also availed undue benefits and concessions and avoided paying taxes according to the customs bylaws. The Customs Export authorities issued to it a final notice on December or January 16, 2018. After receiving the notice, the management of the M/s Taj waseem and Co deposited the evaded amount of taxes into the oﬃcial account.

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he Supreme Court of Pakistan on Monday sought the record of last 10 years income tax returns Viled by former Managing Director of state-run Pakistan Television (PTV) Ataul Haq Qasmi. These directives were issued by Chief Justice Mian Saqib Nisar while hearing a suo motu case of Qasmi’s appointment as MD of PTV. During the court proceedings today, Justice Nisar inquired about the person behind the appointment of former PTV chairman Ataul Haq Qasmi. “All expenses incurred by the state-run media group would be recovered from the person responsible, if Qasmi’s appointment was proven illegal,” warned the CJP. Prime Minister’s Principal Secre-

tary Fawad Hasan Fawad appeared before the court and presented his arguments before the two-member bench. He denied giving an instruction to the former additional information secretary with regard to Qasmi’s appointment. Fawad was summoned by the court to give an explanation over the matter. On the occasion, the former additional information secretary apprised the bench that the appoint-

ment summary was received from the Internal Publicity Wing of the Ministry of Information and Broadcasting. To which, the CJP asked who ordered to move the summary. “A note must have been sent stating that the post is vacant before the summary was moved,” noted Justice Nisar. He summoned the additional prosecutor general of National Accountability Bureau (NAB) in the next hearing, observing as why not

the case be handed over to the antigraft body to probe into the appointment. Qasmi has been looking after the affairs of PTV as its chairperson on a contract after threeyear contract of former MD Mohammad Malick expired on February 26, 2016. The post was vacant until Qasmi sparked controversy by appointing himself as PTV MD in April 2017. He replaced the acting managing director, Information Secretary Sardar Ahmed Nawaz Sukhera. Qasmi had allegedly received an aggregate of Rs278 million as salary and employee beneVits during his two-year term. However, Qasmi’s counsel Ayesha Hamid refused that her client received an amount in millions, as she defended his salary and asserted that Rs150,000 was a reasonable amount for a chairman of the state television.

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Appraisement East unearths misdeclaration case, seizes betel nuts, ﬁreworks Tuesday February 20, 2018

National Sc summons cAA chief, opF MD over facilities at country’s airports

KARACHI: Appraisement East has unearthed a mis-declaration case and seized huge quantity of betel nuts and fireworks, which were cleared as job-lot plastic films for export processing zone (EPZ). M/s Insiyay Packages EPZ, Karachi had imported the consignments and filed goods declarations for EPZ through M/s Gatco clearing agent in One Customs clearing system. The containers of betel nuts had been gated out from South Asia Container Terminal while the firework container had been loaded on the vehicle and was still at the terminal.

customs tribunal reserves judgment in solar batteries import case

ISLAMABAD

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KARACHI

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upreme Court Monday ordered the Civil Aviation Authority (CAA) director general (DG) and Overseas Pakistanis Foundation (OPF) managing director (MD) to answer questions concerning substandard facilities at the country’s airports and mishandling of luggage. A threemember bench of the SC, headed by Chief Justice Saqib Nisar, passed the order while hearing a suo motu case regarding inconvenience to passengers in baggage handling at airports. Justice Nisar had earlier warned Maria Jabeen, a deputy director at the CAA, that the authority should ramp up its operations and the court should not receive any further complaints from passengers. “If we receive any complaints, we will summon the CAA DG,” CJP said, before ordering the top official to appear in court in the next hearing anyway.

court awards jail term to suspect in sales tax fraud case ustoms Taxation and Anti-Smuggling Court Judge Syed Faiz Rasool Rashdi has awarded two years and eight months imprisonment and Rs 1,500,000 fine to a suspect, Muhammad Adil Ashraf, in a sales tax fraud case. During the hearing, counsels for the suspect and Customs Department completed their arguments. The counsel for the suspect argued that his client was falsely implicated in this case and the prosecution has not provided any evidence against him, therefore, the court may acquit him. However, the counsel for the Customs Department argued that the prosecution had provided all the evidences against the suspect and the court might punish him for tax fraud. –CB Report

special customs appellate tribunal (SCAT) has reserved judgment in an appeal Viled by solar-powered batteries importer. The petitioner company, Nizam Energy, imported system for electriVication of villages of Sindh in partnership with provincial government. The systems also included batteries for storing electricity obtained from solar rays. The importer claimed exemption from customs duty under Schedule V of the Customs Act 1969 while exemption was also claimed under section VI of the Sales Tax Act for the Vinancial year 2014-15. The import was made under “Poverty Alleviation” programme and at that time the con-

cession/exemption was allowed but later the Post Clearance Audit reopened the case and a demand was created for Rs52.7 million.

A show-cause notice was issued and ONO was also passed wherein petitioner was asked to pay the duty as well as sales tax. The instant ap-

peal was Viled against the ONO. The tribunal after hearing counsel from both sides reserved the order for an unspeciVied period.

customs export recovers rs11.75 million from defaulter companies T

KARACHI

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he Customs Export has recovered evaded taxes and duties amounting to Rs 11.75 million from defaulter companies which were issued with notices in this regard. Sources told Customs Today, during scrutiny of the import data, it was found that M/s Aryan and Co. availed undue beneVits and concessions by importing different consignments in the month of September 2007 by the hand of examiner Shoaib Ali from Port Wasim, and misusing the SRO 566. The company founded involved in a tax evasion of Rs 7.50 million. After detecting tax evasion, the Customs Exports issued them with Vinal notice to deposit the evaded amount within seven days. After receiving the notice, the management of the M/s Aryan and Co. deposited the evaded amount in the ofVicial ac-

count of the Customs Exports on 16th February. On the other hand, the management of the M/s Sule-

man Traders also cleared Rs 4.25 million of taxes and duties. Sources told that M/s Suleman Traders also

availed undue beneVits and concessions and avoided paying taxes according to the customs by laws.

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Customs PCA detects Rs9.45m tax evasion by M/s Rana Waheed Traders KARACHI: The Directorate of Customs Post Clearance Audit has shown outstanding performance and detected 12 cases in January. Source told Customs Today that Directorate of Customs Post Clearance Audit has detected duties and tax evasion of Rs 9.45 million allegedly by M/s Rana Waheed Traders, Karachi, it is learnt here. Sources said that M/s Rana Waheed Traders, Karachi, imported a consignment of diﬀerent type of imported plastic dinner set 72 pieces and got it cleared from the PICT vide GDs on November 26, 2017 by paying customs duty at 10 percent after claiming the beneﬁts of the SRO 569/2007.

china to allow eDe for consignment verification ISLAMABAD

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hina has decided to allow Electronic Data Exchange for online verification of consignments between the customs authorities of Pakistan and China. The data exchange will help rescuing the chances of under invoicing, another major concern of Pakistani industry. During the 9th round of negotiations on China Pakistan FTA, the Pakistan delegation led by Secretary Commerce Mohammad Younus Dagha presented the demands of Pakistani exporters and industries for accommodating in the final draft of the CPFTA. The demands included those from exporters to provide tariﬀ concessions equivalent to the ASEAN countries. On the other hand, various industries and

chambers had provided input to the Ministry of Commerce during pre-negotiations consultations, for protection of the local industry from Chinese imports by disallowing tariﬀ concessions on several products. Dagha also suggested incorporating clauses for safeguarding the industries and the economy from any undue pressure on the balance of payments position. The Chinese side was led by Wang Shouwen, Vice Minister, Ministry of Commerce, Peoples Republic of China and comprised of 16 officials of various Chinese Ministries. After intense negotiations for two days, the Chinese side agreed to accommodate these concerns and demands in the amended FTA which is expected to be signed in March when the Chinese Vice Minister will visit Islamabad along with his delegation.

National

FBr says no complaint from ABAD regarding valuation anomalies

ptAA approaches pM over tax on withdrawal of money from banks KARACHI

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akistan Tax Advisors Association (PTAA) has approached Prime Minister Shahid Khaqan Abbasi against practice of the tax department to withdraw the money from the bank accounts of taxpayers after attaching their accounts when the matter is subjudice before Appellate Commissioners. In this regard, Chairman PTAA Javed Iqbal Qazi has written a letter to the PM on the subject of ‘conduct of the FBR officials towards taxpayer in the country.’ According to the chairman PTAA, it is submitted that due to arbitrary and illogical collection targets given for collection and the subsequent mal-planning of Federal Board of Revenue, the taxpayers are being harassed by the field forces, especially on the following three issues: The first issue is the illegal withdrawal of tax from the bank accounts of taxpayers after attachment of bank accounts. It is a practice of the tax department to withdraw the money from the bank accounts of the taxpayers after attaching the bank accounts of the taxpayer when the matter is sub judice in appeal before Appellate Commissioners.

ISLAMABAD

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he Federal Board of Revenue (FBR) has said that it has not received any complaint so far from Association of Builders and Developers of Pakistan (ABAD) regarding anomalies in valuation of immovable properties this year. A meeting of the National Assembly’s Standing Committee on Finance chaired by Qaiser Ahmed Sheikh was presented a brief on Saturday on the agenda to consider the suggestions/proposals of real estate sector for further resolving anomalies pointed out by Pakistan Real Estate Investment Forum (PREIF), Association of Builders and Developers of Pakistan (ABAD) and other stakeholders in the FBR valuation table. The FBR stated that rates for immovable properties were notiVied in August 2016 and before notifying the rates, the fair market value of all the areas was determined. Thereafter, the FBR rates were Vixed after consultation with the stakeholders. The overall average of FBR rates were Vixed at a certain percentage of the fair market value with the intention to take the FBR rates equal to the fair

Tuesday February 20, 2018

market value gradually over a reasonable period of time. Subsequently various representations/complaints were received regarding anomalies in valuation tables of FBR and it was reported that FBR rates in some areas are higher than the approximate overall average percentage of the fair market value and in some areas even higher than 100 percent of the fair market value. In this regard, the FBR also held various meetings with the stakeholders to remove the anomalies. The anomalies pointed out were of two main categories; (i) the FBR rate in some areas is Vixed

much higher than the overall average percentage of the fair market value and in some cases even higher than the fair market value; (ii) the FBR rate as percentage of fair market value is higher when compared with a similar comparable location. Accordingly, the FBR rates have been revised to remove the anomalies. The areas where anomalies were removed included the areas where Pakistan Real Estate Investment Forum also pointed out anomalies, such as DHA City Karachi, SITE Industrial Area and Anmol Cooperative Housing Society.

tax commission’s proposal not implemented yet

KARACHI

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he proposal of tax reform commission to plug revenue leakage and bring all segments having taxable income into tax net has not implemented yet. The tax commission in its report and recommendations submitted to Vinance ministry in May 2015 for subsequent implementation. The tax commission had realized the quantum of black money in the system and outVlow of plundered money for depositing in offshore bank accounts. In order to prevent outVlow of illegal money and routing

back through available channels having legal shelters, the commissioner recommended amendment in Foreign Exchange Regulation against the black money held abroad. It said that the Foreign Exchange Regulation Act (FERA) needs to be amended in order to get hold of the black money held abroad. The commission recommended that if any person holds any foreign exchange, foreign security or any immovable property outside Pakistan, the equivalent value of property in Pakistan can be seized. Prescribed procedure has to be followed for the seizure. Consider a situation where a person is holding as-

sets in a tax haven in violation of FERA. When Enforcement Directorate wants to seize the foreign assets, the Tax Haven Government and its banks – may not co-operate. In such a situation, the Enforcement ofVicer now will have the power to seize Pakistani assets. This power of seizure under FERA is in addition to the penal action under Income tax Ordinance 2001 and penal action under FERA. This provision is drastic. It provides that if the Authorized ofVicer has “reason to believe” that the foreign asset is “suspected to have been held in contravention of FERA …” the consequences of seizure will follow. Any

penal consequence should follow if the contravention is proved. One cannot seize property if an ofVicer has mere reason to believe and he just suspects a contravention. Penal consequences should follow only after the contravention is established. Such differences of interpretation should not lead to a suspicion or conclusion that it is a contravention; and it should not lead to seizure of property. The seizure rules should apply only in case of serious contraventions like hawala transactions. It may be noted that the phrase “Reason to Believe” has been considered judicially. It cannot be a mere suspicion by the ofVicer.

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World Customs

Russia reduced imports of wheat by 25%

MOSCOW: Russia imported 2.2 MMT of grain and grain products (including deliveries from the Customs Union countries) in MY 2017/18 by February, or 0.4 MMT (14%) less than at the same time in MY 2016/17 (2.5 MMT). 2.7 MMT of this produce was imported for the first eight months of MY 2015/16, Rosselkhoznadzor (Federal Service for Veterinary and Phytosanitary Surveillance) reports.

Tuesday February 20, 2018

22 illegal immigrants nabs trying to enter uAe

russia’s leadership may be ready for tax reform MOSCOW

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DUBAI

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cement mixer driver was caught trying to smuggle 22 illegal immigrants into the country at the Khatam customs centre, police said. Last week, the federal customs authority and Sharjah Police discovered the stowaways, who included a girl of African origin and 21 Asians, hiding in the cement mixer of the vehicle. Customs were tipped off about the illegal smuggling attempt and so stepped up inspections at the border. “We received reports about a plan to smuggle immigrants into the country. Extensive inspections were carried out,” said Mr Ali Al Kaabi, chairman of the customs authority. “Customs ofVicers scanned cement mixer and found dozens of individuals hiding.” OfVicers from Al Kalba police stations, Sharjah Police

NZ dollar seen defying volatility in year ahead ew Zealand dollars, although the antipodean currencies still seem set for a remarkably dull year despite raging volatility in global markets recently, a Reuters poll showed. The survey of 50 analysts charted a steady course for the Australian dollar, which is seen at $0.7900 three months out, $0.7800 in six and back at $0.7900 in oneyear. Analysts had earlier forecast the Aussie at $0.7700 over the year. The currency slid from a 2-1/2 year peak of $0.8136 in late-January to a more than one-month trough of $0.7766 on Friday, as investors fled from perceived risky assets to safer harbours of bonds and the Japanese ye That might explain the wide range in the forecasts from as low as $0.7000 and as high as $0.8500 on a one-year horizon. –CB Report

and customs ofVicers responded to the incident. Meanwhile, Sharjah Police have arrested an Asian who attempted to smuggle gold pieces worth Dhs100,000 through Sharjah International Airport. The police suspected the existence of a big can of food supplement formula, which the traveller had concealed in-be-

tween his clothes. The police decided to open the can to see what was inside it. The ofVicers were shocked to Vind pieces of gold jewellery worth Dhs100,000 hidden inside the supplement powder. During the interrogation, the suspect told the police that he bought the gold items and presented cash receipts.

china may soften curbs in financial sector to protect economy

hina may be forced to soften efforts to curb risks in its Vinancial sector in order to protect the economy, said an analyst who made her name warning about the dangers of the nation’s credit binge. Despite the crackdown on shadow banking and other areas of Vinancial risk, which got underway last year, China’s economic growth is still being underpinned by rising debt, said Charlene Chu, a senior partner at Autonomous Research in

Hong Kong. The government’s harsh rhetoric masks a softly-softly approach to tackling Vinancial risk amid fears that stronger action would endanger the economy or the balance sheets of Chinese banks, she added in a recent interview. In the past, we had limited acknowledgment of problems and little action,” said Chu, who has been consistently bearish on the threats posed by a mountain of credit she estimates at 226 trillion. –CB Report

n 2011, a group of Russian and foreign academics put together a long-term economic plan known as Strategy-2020 which emphasized investment in human capital and infrastructural development as a method to offset demographic decline and capital depreciation. At the same time, the plan proposed signiVicant cuts of defense expenses and pension system reform. Disagreements over speciVic measures and new risks, particularly the rising protest activity of 2011-2012, eventually resulted in Strategy-2020 being shelved. But the proposal survived the following years and currently has a number of high-proVile supporters, including the head of Central Bank of Russia Elvira Nabiullina. The idea is also championed by former Vinance minister Alexei

Kudrin, who is considered to be one of the most prominent independent experts with direct access to highest echelons of power in Russia. In 2017, he published a report warning that any further delay of the budget reform will result in long-term stagnation of Russian economy. When asked about the reports about a possible budget refocus emerging in Russian media in mid-January, Putin’s press secretary Dmitry Peskov stressed that no Vinal decision has been made yet. However, later comments by other major speakers, particularly by the Vinance minister Anton Siluanov, hinted that this time the government is determined to proceed with the maneuver. The exact way in which it will be implemented is still not entirely clear, though.The presidential election in March will open a window of opportunity for a possible budget maneuver. Whether the Kremlin would use it will depend a variety of factors, most importantly the outcome of the election.

Breville ANZ revenue up 8% reville has recorded group revenue of $385.4 million for 1H18 – a 13.6% increase compared to the previous corresponding period. Its EBIT growth rate acceleration trend continued with a 12.3% increase compared to a 6.7% increase in the previous period. Revenue for the ANZ region increased by 8.5% (or 9.3% on a constant currency basis) to $68.7 million, primarily driven by the beverage category with new products launched in the half, as well as continued momentum of existing products. The Virst half of the 2018 Vinancial year included new revenues in ANZ from the Aqua-

port acquisition and the Nestle Dolce Gusto distribution relationship. These additional revenue streams largely offset the impact of the expiry of the ANZ Phillips distribution agreement late in the 2017 Vinancial year. Breville recorded a 20% increase in revenue for the North America region to $191.2 m, generated from new products released within the last 12 months in the beverage and cooking categories. Rest of World (ROW) revenues increased by 26.4% (or 29.5% on a constant currency basis) to $53.3m, with both the Hong Kong distribution and UK business experiencing double digit growth in constant currency. –CB Report

Sami to take part in Saudi armed forces expo

RIYADH

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audi Arabian Military Industries (Sami), a wholly-owned Public Investment Fund (PIF) company, revealed its inaugural participation at the Armed Forces Exhibition for Diversity of Requirements and Capabilities (AFED), being held in Saudi Ara-

bia. Sami participated as a strategic partner of the event, which will take place from February 26 to March 3, at the Riyadh International Convention & Exhibition Center. Sami provides a range of military products and services that currently span four ?business divisions, namely aeronautics, land systems, weapons and missiles, and defence electronics, and has already signed several agreements

within its Virst year of operations with internationally renowned defence companies, including Boeing, Lockheed Martin, Raytheon, and General Dynamics, in order to support its development and growth. AFED 2018 is being held under the patronage of King Salman Bin Abdulaziz Al Saud, Prime Minister and Custodian of the Two Holy Mosques and the directives of HRH Prince Mohammed Bin

Salman Bin Abdulaziz Al Saud, Crown Prince, First Deputy Prime Minister, Minister of Defense, and chairman of the Council of Economic and Development Affairs. Dr Andreas Schwer, chief executive ofVicer, Sami, said: “Saudi Arabia is one of the top Vive countries in the world in terms of military spends, and the establishment of Sami was an ambitious yet highly critical step as part of the country’s.

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Iran ups exports to China by 25% TEHRAN: The value of Iran’s exports to China as its top trading partner witnessed a 25.2 percent rise compared to 2016, a senior trade official announced. “Iran’s major commodities exported to China last year included crude oil, polyethylene, methanol, sulfur, styrene, iron ore, copper ore, purified copper, chromite, lead ore, zinc ore, marble and travertine,” Hossein Roustayee, an official with the Trade Promotion Organization of Iran said. He noted that the value of trade balance between Iran and China hit $18.58 billion in 2017. China is Iran’s biggest trade partner. The latest Islamic Republic of Iran Customs Administration’s statistics show China exported 3.8 million tons of commodities to Iran worth $10.22 billion in the first 10 months.

Iran’s Lpg exports jump to 520,000 mt most since sanctions ended PG shipments from Iran made a strong start to the year, rebounding to 520,000 mt in January, the highest since Western sanctions for its nuclear program were lifted in January 2016, updated fixtures from shipping sources showed this week. The latest volume is 146,000 mt more than initial figures published in mid-January, according to shipping sources. It is also up 39.4% from 373,000 mt in December 2017, when shipments posted the first month-on-month increase in three months, after exports started declining in September due to lower output at the South Pars gas field amid a two-month maintenance. In 2017, Iran’s LPG shipments totaled around 3.5 million mt, with the highest monthly volume seen in August at 423,000 mt before the maintenance, which ended around

Ports & Shipping

ukraine reduces port duties to bolster shipping capacity KIEV

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n a move to bolster the capacity of Ukrainian seaports, a 20% reduction of port duties payable in Ukrainian seaports became effective from 1 January 2018. The new rules are pursuant to Order No. 474 approved by the Ministry of Infrastructure of Ukraine on 27 December 2017. Currently, Ukrainian seaports can charge up to 20 various port dues and fees and are known to be among the most expensive in the region. The seven main port dues (Tonnage, Lighthouse, Berth, Canal, Anchorage, Sanitary and Administrative) are state-regulated and, prior to reduction, could constitute up to 60–70% of the total port call costs for a shipping vessel. The discount covers all but one of the above-mentioned duties (excluding the Lighthouse due) in all seaports, except for three ports on the Duna River (Reni, Izmail and UstDunaisk).

There are a few other notable exceptions. The decrease does not apply to ship calls for transit cargo handling, including the transit of petroleum products, passenger vessels and ice-breaker ships. Two types of governmentally-regulated fees for special services (pilotage and trafVic control fees), which are not consid-

ered port dues, are also not subject to a reduction. The move to reduce the mandatory payments is designed to attract additional capacity to Ukrainian ports and should beneVit exporters of Ukrainian raw commodities. The Ministry’s order was further approved by the Ukrainian cabinet on 11 January 2018.

Tuesday February 20, 2018

china imports reindeer from Netherlands to revive species

hina has imported a herd of 115 reindeer from the Netherlands as part of an effort to boost the number of the species in the country, authorities said Tuesday. The reindeer have arrived in Genhe in north China’s Inner Mongolia Autonomous Region and are undergoing a 45-day quarantine period, according to regional quarantine and inspection authorities. After that, they will be shipped to Aoluguya, where ethnic Ewenki herders known as “the last hunting tribe in China” still use reindeer as an important means of transportation. In recent years, the number of reindeer in the village has dropped to about 800 due to inbreeding. In January last year, China reached an agreement with the Netherlands on reindeer importation. Two months later, the first herd of 30 reindeer arrived in China. –CB Report

uS lags behind in export promotion investments mid-November, sources had said. Iranian exports are helping to fill shortfalls of spot supply from the Middle East, as major producers Saudi Arabia, the UAE, Qatar and Kuwait are exporting less spot cargoes as they focus on fulfilling term contracts and meeting domestic petrochemical demand. Preliminary figures so far showed 132,000 mt fixed for lifting in February in three cargoes, shipping sources said. Thai trader Siam Gas has lifted aboard the VLGC Ming Long a cargo comprising 33,000 mt of propane and 11,000 mt of butane from Iranian Gas Commercial Co., or IGCC, at Assaluyeh on February 5 for delivery to Guangdong, in southeast China. –CB Report

WASHINGTON

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he latest analysis of foreign export promotion program investment shows that several competing countries and the European Union spent close to $1 billion in public funds on agricultural export promotion in 2016, outspending the U.S. four to one. That is an increase of 70% in real competitive public spending since 2011. U.S. public funding for the two largest agricultural export promotion programs is about $235 million per year, and its real value has declined 12% since 2011. The conclusions echo results of three similar competitive studies since 2013. Selected Foreign Export Promotion Programs,” was commissioned by the Wine Institute and other agricultural associations and conducted

by Informa Economics IEG with Market Access Program (MAP) funding. With a focus on EU export development investment, IEG also reviewed agricultural export promotion investment by major competitors from Australia, Chile, China, New Zealand and others. “The total public investment alone from just the EU and four European countries are expected to exceed $550 million in 2019, which is more than twice what the U.S. government authorizes for agricultural export development under the farm bill,” said Mark Powers, president of the Northwest Horticultural Council and chairman of the Coalition to Promote U.S. Agricultural Exports. Other governments are investing more in global food and agricultural markets while inVlation, sequestration and administrative costs are chipping away at U.S. funding,” said Tom Sleight, chief executive ofVicer

of the U.S. Grains Council, which is a member of the Agribusiness Coalition for Foreign Market Development. “That also cuts into the ability of American family farmers, livestock and dairy producers, Vishermen and small agri-food businesses to compete in growing export markets.” Sleight said increasing competition is one of the reasons why organizations that participate in cost-share export programs with the U.S. Department of Agriculture’s Foreign Agricultural Service, as well as a number of members of Congress, are calling for more funding for U.S. programs. He said by 2016, private funding from industry members provided 70% of the total annual investment in MAP and the Foreign Market Development (FMD) program, both administered by USDA’s Foreign Agricultural Service. The remaining 30% from annual government funding

has been stagnant — at $200 million for MAP since 2006 and at $34.5 million for FMD since 2002. Coalition members are asking that MAP and FMD funding be doubled by the last year of the new farm bill. That is also the goal called for in S.1839 and H.R. 2321, the Cultivating Revitalization by Expanding American Agricultural Trade & Exports (CREAATE) Act, introduced in 2017. “All the members of our coalition are grateful for federal export promotion support over the years,” Powers said. “The investment has been very successful in boosting U.S. agricultural export volume and revenue at a rate that far exceeds its public expense. Because these programs also protect and create American jobs and increase farm income, there is no doubt they are highly successful public/private partnerships worth the increased investment.”

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FIA oﬄoads three passengers LAHORE: Federal Investigation Agency (FIA) Faisalabad Immigration oﬄoaded three passengers at Faisalabad airport. According to an FIA spokesman, the passengers—Shamoon Masih, Zahid Almas Masih and Patras Masih—were travelling to Sharjah, UAE, on visit visas, which had already been used for departure from Lahore airport. During interrogation, they disclosed that were going to Malta (Europe) via Sharjah on the basis of visit visas of the UAE. Further investigation is underway.

Tuesday February 20, 2018

Business

economic growth can help create new opportunities ISLAMABAD

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rime Minister Shahid Khaqan Abbasi has said the economic growth would help create new opportunities for the qualiVied people and reverse brain drain from the country. He was talking to a delegation of students from Institute of Business Management Karachi here at the Prime Minister OfVice. The interaction forms part of a series of meetings held under the initiative in which students from various educational institutions from across the country are invited to the Prime Minister OfVice. The students were

FIA nabs doctor for blackmailing girl LAHORE

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also briefed about working of the highest ofVices of the government. Replying to the students’ queries on health and education, the prime minister said those areas had been devolved to the provinces under the 18th

Branchless Banking accounts number reaches record 33 million

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ederal Investigation Agency (FIA) has rounded up a man for allegedly blackmailing a girl by uploading her pictures on social media. The cyber crime wing of the investigation agency received a complaint against the accused, stating that a doctor named Dr Kaleemul Hassan was blackmailing by uploading her personal pictures on Whatsapp and other social media sites, local media reported. Following the complaint, a team of the FIA conducted raid in Gulberg, area of Lahore, and arrested the MBBS doctor.

Amendment. With greater Vinancial allocations, it was now the responsibility of provinces to ensure provision of quality education and health facilities in their respective domains, he added. He said the federal government was

committed to provide every possible assistance to the provinces for promoting education and ensuring provision of quality health facilities to the people. The prime minister said the world was taking keen interest in the economic growth of Pakistan, keeping in view its huge market and the vast potential for further growth. Responding to the challenges of climate change and the issue of sustainability, he said Pakistan was a responsible member of the international community. Despite the country’s low carbon emissions level, the government had taken a number of steps, including fuel replacement, conversion of furnace oil power plants to more efVicient and environmental friendly ones, and addition of solar energy to the existing energy-mix to further reduce the emission levels.

ISLAMABAD

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he number of Branchless Banking (BB) accounts has surged to 33 million by September 2017, exhibiting a positive trend during last one year. The three month period from July to September, 2017 saw a record increase of 5.7 million accounts. The rise in BB accounts is exhibiting a steeper trend since June 2016 due to the creation of an enabling environment by central bank and vibrant role of BB players in

facilitating account opening process through biometric devices at agent locations and remote account opening options. As per statistics, 25.6 million male and 7.3 million female accounts make up all the BB accounts. Sindh represents the highest share of female BB accounts with 25 per cent, followed by Punjab, Khyber Pakhtunkhwa and Gilgit Baltistan. The BB accounts witnessed a 29 per cent increase in female accounts as compared to 19 per cent increase in male accounts in said quarter – a positive sign in gender inclusion. However, this phenomenon was mainly noticed in Punjab, whereas other

provinces experienced higher growth in male accounts than female accounts. The signiVicant rise in BB accounts and limited share of active accounts exhibits the fact that the BB platform is attracting more people, however, it still needs to provide value-added services for generation of activity in the accounts. It is high time for the industry to offer innovative and tailor-made products for different segments of the society to generate activity in the accounts and to transform the existing cash-based payments streams to digital channel in order to pave a way for the establishment of a Cash-Lite society.

cellular subscribers reach 145m: ptA ISLAMABAD

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he number of cellular subscribers has reached 145 million with teledensity of 71.42% as a result of initiatives taken by ministry of Information Technology and Telecommunication. The 3G/4G subscribers have reached 48 billion out of 145m mobile users in the country. Teledensity for 3G/4G subscribers has reached 23.81 percent and teledensity of cellular subscribers reached 71.42 percent till the month of December whereas mobile broadband (3G/4G) users’ were 37.574m till Dec 2016, revealed Pakistan Telecommunication Authority (PTA). The Ufone 3G users reached 5.7 million, Telenor 3G users reached 10.63m, Mobilink 3G users reached 14.29m and Zong 3G users reached 9.5m till Dec 2017. Telenor 4G users reached 1.5m, Mobilink 4G users reached 1.9m and Zong 4G users reached 4.9 million. An official of IT Ministry said that once the infrastructure will be in place to achieve 100 percent 3G coverage, Pakistan will be ready to focus on the demand side of the technology; such as providing training to the masses who want to attain the best of digital skills.

NAB recovers rs1,832m, returns to Shaheen Foundation ISLAMABAD

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he National Accountability Bureau (NAB) has recovered Rs1,832 million from the current management of Al-Hamra (Pvt) Ltd and Al-Hamra Avenue Pvt Ltd and handed over to the members of Shaheen Foundation. The accused failed to hand over plots and rather sold the land to

other parties, which deprived members of Shaheen Foundation of their hard earned money. During an inquiry proceeding, the present sponsors showed willingness in writing to return Rs573 million as a proVit in addition to the principal amount. In the Virst phase, Rs366 million was returned to victims of M/s Shaheen Foundation while in second phase Rs50 million have been returned. In the third phase, Rs117.5 million and in fourth and Vifth phases, Rs137

million have been returned to victims of Shaheen Foundation. Rawalpindi NAB Director General Irfan Naeem Mangi has said that the bureau believed in zero-tolerance policy against corruption. Meanwhile, A National Accountability Bureau (NAB) court has indicted former Sindh information minister Sharjeel Memon in the Rs5.76 billion corruption case. Memon and 11 other accused in the corruption reference were arrested

by NAB in October last year. NAB arrested PPP leader Sharjeel Inam Memon from outside the Sindh High Court after his bail was rejected on October 23, 2017. The 13 accused persons, including Memon, pleaded not guilty to the corruption charges in court. Lashing out at the NAB and PML-N, Memon alleged that NAB has dual standards. “The then-interior minister Chaudhry Nisar added my name to the Exit Control

List (ECL). He should also appeal to get his leader’s [Nawaz Sharif] name added to the list,” he said while speaking to journalists on the court premises. He further said that the former Vinance minister Ishaq Dar Vled the country yet his name was not added to the ECL. In an apparent reference to Nawaz’s protocol, Memon stressed that the chief justice should take notice of the dual standards within the government ranks.

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LCCI demands release of refunds/RPO on “first come first serve” basis LAHORE: The Lahore Chamber of Commerce and Industry has demanded of the Federal Board of Revenue (FBR) to release income tax & sales tax refunds/RPO on “first come first serve” basis. The demand was raised by the LCCI Acting President Khawaja Khawar Rashid and Vice President Zeshan Khalil while talking to a delegation of exporters here at the Lahore Chamber of Commerce & Industry. Delegation informed the LCCI office-bearers that FBR has set its own priorities for releasing refunds/RPO to the exporters. They said that old cases are still pending while new refunds cases have been resolved which has generated panic amongst the business community. Khawaja Khawar Rashid and Zeshan Khalil said that discrimination in releasing refunds/RPO is a sheer injustice. They said that in the present scenario when economy needs resources for expansion, squeezing of business would be harmful.

wealthy, potential non-taxpayers must be brought into tax net: SccI

Tuesday February 20, 2018

Chambers

Business community to make joint eﬀorts for common objectives

LAHORE

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he Vice President SAARC Chamber of Commerce and Industry (SCCI), Iftikhar Ali Malik Friday welcomed Prime Minister’s plans to broaden tax base, saying that wealthy and potential non-taxpayers must be brought into tax net. Chambers would cooperate with the government in this regard, he said while talking to a high level delegation of traders, importers and exporters from Sialkot led by Abdul Ghafoor Butt, Executive Member, Sialkot Chamber of Commerce and Industry here. According to press released issued here, Malik said that ratio of tax payers in Pakistan was even less than Afghanistan, adding the broadening of

tax net was must for strengthening the national economy and for the survival of the country. He said that Federation of Pakistan Chamber of Commerce and Industry (FPCCI) and top leadership of United business Group (UBG) is in principle agreed to lend helping hand to the government in this regard. He said plugging of revenue leakage and broadening of tax net would ultimately benefit the existing tax payers in terms of reduction in heavy taxation. He said that the UBG and all chambers across the country would not only resolve the issues being confronted by the traders but also convince the trading community to pay their due taxes timely. He said Prime Minister Shahid Khaqan Abbasi has assured to address all the genuine grievances of the business community on top priority and had directed all ministry and attached departments to resolve traders’ problems on priority basis.

ISLAMABAD

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he Islamabad Chamber of Commerce & Industry (ICCI) in collaboration with its members has donated an amount of Rs 0.5 million for the Islamabad Lawyers Club. For this purpose, a delegation of Islamabad High Court Bar Association led by its President Arif Chaudhry visited ICCI and Sheikh Amir Waheed President ICCI in a ceremony presented the cheque of Rs.0.5 million to Arif Chaudhry. Sardar Tanvir Ilyas Chief Executive Gulf Construction Company, Sheikh Amir Waheed, President and Khalid Javed, Zafar Bakhtawari and Atif Ikram Sheikh former Presidents ICCI contributed to the said amount. Speaking at the occasion, Arif Chaudhry, President, Islamabad High Court Bar Association thanked ICCI for donating a hefty amount for Lawyers Club. He said that ICCI and IHC Bar Association have common objectives to serve the cause of their members and they should develop close cooperation to promote the interests of lawyers and business

communities. He assured that whenever needed, IHC Bar Association would fully support business community in better protection of its genuine rights. Sheikh Amir Waheed, President, Islamabad Chamber of Commerce & Industry said that lawyers and business community were two important stakeholders of the city and they should make joint efforts for con-

ducive business environment and better development of the city. He said lawyers were playing important role for delivery of justice to the aggrieved parties and business community was playing key role in the economic development of the country and stressed that government should resolve issues of lawyers and business communities on priority basis. Muhammad Naveed Senior Vice President, Nisar Mirza Vice

LccI, pak embassy to set up buying house LAHORE

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akistani embassy in Malaysia, in collaboration with the Lahore Chamber of Commerce & Industry (LCCI), will establish a buying house and display centre for Pakistani products in Kualalumpur to show customers the best quality of Pakistani products. The decision was made at a meeting between Pakistani High Commissioner in Malaysia Nafees Zikaria and LCCI President Malik Tahir Javaid in embassy of Pakistan, Kualalumpur. Members of the LCCI delegation Shahid Nazir, Awais Saeed Piracha, Muhammad Wasim, Haseeb Khawar, Shabbir Bhatti, Malik Muhammad Islam, Muhammad Farooq, Mian Faisal Majeed and Muhammad Arshad Bhatti were also present in the meet-

ing, according to LCCI spokesman here Saturday. Pakistani High Commissioner in Malaysia Nafees Zikaria said that Pakistani embassy would take all possible measures to introduce Pakistani products to Malaysians. He urged the LCCI members to avail the opportunity and grab the attention of foreign buyers through the display centre to be set up by the embassy of Pakistan in Kualalumpur and the LCCI. He also lauded the untiring and sincere efforts of LCCI President Malik Tahir Javaid and other members of the delegation for external trade of the country. LCCI President Malik Tahir Javaid said that display centre for Pakistani products in Kualalumpur will be beneVicial for both country and the business community. He said that boost in export is a must to bring precious foreign exchange in the country. He said that in present global scenario, mar-

keting is the most effective tool to increase the businesses whether these are large or small. He said that lack of proper marketing is also one of the major reasons of limited Pakistani exports, but the Lahore Chamber of Commerce & Industry is striving to remove the obstacle. Malik Tahir Javaid urged the businessmen to contact the LCCI to avail the opportunity of display centre for Pakistani products in Kualalumpur. Lahore Chamber President also urged the Pakistani entrepreneurs to concentrate on branding because consumers always prefer branded products. He said that branding transforms an ordinary product into special one and also removes all the ambiguities from the minds of the buyers thus a huge amount of foreign exchange can be earned by focusing on branding as Pakistani products are best of the best in the world.

President ICCI, Zubair Ahmed Malik Chairman Founder Group, Zafar Bakhtawari, Khalid Iqbal Malik, Atif Ikram Sheikh, Muzzamil Sabri former Presidents ICCI and Khalid Chaudhry former Senior Vice President ICCI also spoke at the occasion and assured that business community would cooperate with IHC Bar Association in efforts aimed at promoting the interests of lawyer community.

growers allege pSMA of violating high court’s order he Sindh Chamber of Agriculture (SCA) has requested Sindh High Court to issue contempt notice to Pakistan Sugar Mills Association (PSMA) for alleged violation of the court’s order. At a meeting of the SCA here on Sunday, which was attended by the farmers’ representatives from Karachi, Sukkur, Sanghar and Ghotki through video link, the farmers alleged that PSMA was violating the SHC’s order. The SCA claimed that the mills were paying only Rs.130 per 40 kilograms of sugarcane against the SHC fixed rate of Rs.160 per 40 kg. “The sugarcane farmers in Sindh have been pushed into financial straits due to the low price of the crop. –CB Report

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Court issues NBWs of accused involved in QMobile smuggling MULTAN: The Special Judge of Customs Taxation and Anti-Smuggling Court has issued non-bailable arrest warrants of accused nominated in the smuggling of Q-mobile seized by Multan Customs authorities. According to details Special Judge Customs Taxation and Anti-Smuggling Court issued non-bailable warrants of absconding suspects Zeeshan Akhtar son of Mian Pervaz Akhtar Chief Executive Officer who is resident of House 106 Khayabaan Sehar Phase VI DHA Karachi.

Tuesday, February 20, 2018

CUSTOMS BULLETIN

customs hyderabad impounds 107 bags of LeD tVs, 10 cartons of cigarettes, car HYDERABAD ASLAM ANJuM QureShI www.customsbulletin.com

he Anti-Smuggling Organization (ASO), Customs Preventive Hyderabad, has taken into possession 107 sacks of imported smuggling LED TVs of 24 inches made in Indonesia and contraband items including 10 cartons of smuggling cigarettes of Pine Lights brand along with a Toyota Corolla car. The market value of the impounded items is Rs8.1million including duties and taxes along with a car valued at Rs3.2million. The execution was carried out near bypass Hyderabad and Railway Station Kotri. Sources told Customs Today that Customs Collector Akhlaq Ahmad Khattaq ordered the curbing of smuggling. Additional Collector Hyderabad Dr Aamer Nawaz Hamid received a tip-off regarding the said smuggling items. He formed an ASO team, comprising Superintendent Sikander Akbar Panhwar, Inspector Rana Shahbaz, Inspector Abdul Majeed Barich and other staff, who took part in the operation. The team intercepted a truck container with registration No: JY-

5703 near bypass Hyderabad and recovered the said goods. Prior to the recovery, the ASO had asked the occupants of the vehicle for producing the legal documents regarding the possession of the items and a vehicle but they failed to do so. The ASO team impounded the above-

mentioned goods according to the customs bylaws. The same team has also caught an Iranian diesel tanker worth millions of rupees. The Model Customs Collectorate (MCC) Hyderabad team comprised Superintendent ASO Hyderabad Customs Preventive Sikander Akbar Panhwar,

Inspector Rana Shahbaz, Inspector Abdul Majeed Barich, sepoys, a driver and other staff who took part in the operation. The Anti-Smuggling Organizations (ASO) Hyderabad, Customs Preventive, frustrated various smuggling attempts and im-

pounded big seizures of non-dutypaid items including 125,000 liters of smuggling HSD Iranian diesel and five oil tankers bearing registration Nos: JP-9950, TUA579, TUD-121, TUA-576 and TKX649 Hino oil tanker during the January 2018.

customs Faisalabad impounds items & loaders valued at rs24m FAISALABAD

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he Customs AntiSmuggling Organization (ASO) Faisalabad has seized the contraband goods worth Rs24million during January. Assistant Collector Shah Samad Hamadani told Customs Today that smuggling cases are declining day by day due to strict monitoring and timely actions of the ASO

teams. He appreciated the performance of the ASO as it has frustrated a number of smuggling bids in the region. The impounded items include non-duty-paid vehicles, foreign origin cloths, crockery, dinner sets and other miscellaneous items. The Faisalabad ASO registered more than 14 seizure cases during anti-smuggling activities in January. It may be recalled that the ASO Faisalabad also covers Jhang, Mianwali, Sara-eMuhajir, Sargodha and Faisalabad. He assured the higher authorities of maintaining this pace of work to achieve the yearly revenue targets

under all the heads. The non-duty-paid seven vehicles were taken into possession under Section (U/S 16 NDP) valued at Rs4.5million. Three vehicles being used for transportation of smuggling items worth Rs9.6million were impounded. The ASO team conViscated foreign origin cloths weighed 3,240kg priced at Rs1.9million, tyres and tubes numbered 28 worth Rs550000, dinner sets numbered 30,594 cartons valued at Rs6million and other miscellaneous items weighed 7,607kg priced at Rs1.1million during said period.

He said the FBR strictly instructed all the customs collectorates to adopt a zero tolerance policy against those involved in the smuggling. After receiving these instructions, the customs collectorates have sped up their efforts to thwart the smuggling activities. Meanwhile, The Anti-Smuggling Organization (ASO) Faisalabad has seized 3,240 kilogram of smuggling fabrics worth Rs4million involving duties and taxes amounting to R995672 in an action. Sources told Customs Today that, following information received through Collector Muhammad Asif jah, a large quantity of non-duty-paid fabrics is being

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smuggled from Karachi into Faisalabad. Superintendent Tanveer Naqvi constituted a raiding team comprising Inspectors Mujahid Abbas, Asghar Mehdi Naqvi, Driver Ghulam Abbas and others. The ASO team intercepted a trailer bearing registration No: LEI-3802 loaded with dyed fabric compound of polyester coated from one side with polymeric material weighed 3,240kg. Driver named Muhammad Amir son of Umar Hayat was asked to show documents regarding the legal import of the fabrics but he could not produce anything legal for the legal possession of the fabrics.