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ollectorate of Customs Preventive Lahore has collected Rs 4,395 million in all duty and taxes during the Pirst 15 days of June 2017. As per details, the Collectorate of Customs Preventive under the supervision of Collector Chaudhary Zul-
Piqar collected Rs 1,666 million on account of customs duty (CD) during period under review against the proposed target of Rs 2,016 million. Similarly, the Collectorate collected Rs 479 million on account of withholding tax (WHT) during the period under review against the assigned target of Rs 372 million. While on the other hand the Collectorate collected an amount of Rs 2,248 million under the head
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of sales tax against the assigned target of Rs 2,878 million during the Pirst 15 days June 2017. Likewise, the Collectoarte collected Rs 1.23 million on account of federal excise duty (FED) during the period under review against Rs 9.80 millions of proposed target for the period. Overall the Collectorate collected Rs 4,395 million duty and taxes during the Pirst 15 days of the month of June 2017.
Hyderabad ASO seizes goods & vehicles valued Rs72 million
DG Valuation issues value of tropical multi system, chiller type, air conditioners
Rs90b to be spent on Haveli Bahadar Shah power project: CM
Customs Court rejects bail plea of the accused in mobile phone smuggling
Customs GPO foils bid to smuggle 2 kg heroin worth Rs20m from carton
The MCC ASO confiscated smuggled items worth Rs72million from Hyderabad | See pAge 02 |
DGCustomsValuationhasrevisedthecustoms value tropical multi system/ chiller type | See pAge 03 |
CM has inspected the 1230-megawatt gas power plant in Haveli Bahadar Shah | See pAge 04 |
Court of Taxation and Anti Smuggling has rejected the post arrest bail plea | See pAge 14 |
CustomsIMOatGPOIslamabadseized2kg offinequalityheroinfromparcelconcealed | See pAge 16 |
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Nigerian held at Islamabad airport, heroin recovered Wednesday, June 21, 2017
National
ISLAMABAD: The Airport Security Force (ASF) arrested a Nigerian passenger at Islamabad’s Benazir Bhutto International Airport (BBIA) for possessing heroin. The detained passenger, identified as Filpines, was leaving Pakistan on Istanbul-bound flight TK-711 when immigration officials searched his luggage and found 430 grams of heroin hidden in the pocket of a pair of dress pants, the sources said. ASF officials detained the passenger on the spot. Filpines was handed over to the AntiNarcotics Force for further investigation.
Hyderabad ASo seizes goods & vehicles valued rs72 million
FAISALABAD
HYDERABAD
nAeeM SHeikH
ASLAM AnJuM QureSHi
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ollectorate of Customs Adjudication Deputy Collector Asma Hameed ordered a seizure of electronic items under the customs bylaws besides giving an option of redemption-fine of 20% of the customs differential value of the goods to be appraised on the payment of duty and taxes. Deputy Collector Asma Hameed issued Order-In-Original (ONO) No: 98/2017 against Atta Muhammad son of Awais Muhammad detected by Field Investigation Unit (FIU) Khushab Intelligence. Following a tip-off, the smuggling of electronic items including assorted used computer brand (30Nos), used computer CPU (140-Sets), computer system without hard disk (462-Sets), used laptop with hard disk (141-Pcs), used laser jets (100-Pcs), internet connection cable (20-Kgs) and used CPU without hard disk (30-Pcs) loaded on trailer No: 9865 was intercepted near Maunwali Toll Plaza, M.M Road, Mianwali. The officials asked the driver to show documents regarding the legal import of the items but he failed to produce the same. Therefore officials confiscated the items under Section 17 of the Custom Act-1969 read with Section 2(s) and sent case to the adjudication.
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he Model Customs Collectorate’s Anti-Smuggling Organization (ASO) conPiscated smuggled items worth Rs72million from Hyderabad, Sukkur, Jacobabad, Khairpur and Larkana Customs Preventive during May 2017. Following the instruction of Hyderabad Customs Collector Akhlaq Ahmad Khattaq, the ASO teams conducted various anti-smuggling activities to protect the national exchequer. The teams impounded different items including non-duty-paid vehicles and (u/s157), foreign origin cloths, tyres and tubes , auto-parts, foreign origin cigarettes of different brands, opium, smuggled Iranian HSD high speed diesel, electronics, LEDs, airconditioners , TVs, data cable, chargers , satellites, receivers electric irons and toiletries including lipsticks, nail polishes, perfumes, soaps, shampoos , smuggled Rani juices, toys, Gutkas of all brands and other items in different actions. It seized 53,944 yards of smuggled cloths worth Rs5.6million, 26,723 cartons of cigarettes valued Rs15million, six vehicles (u/s.157) worth Rs14.3million, two NDP vehicles (u/s. 16) worth Rs3.4million, foreign origin 243 Nos/ sets of smuggled tyres and tubes valued Rs897000, auto-parts worth Rs2.5,
Dc Asma orders seizure of nDp items, gives redemption option
electronics Rs5million and toiletries valued Rs1.9million, contraband items including 1705,000 sachets of smuggled foreign origin Gutkas worth Rs18million and drugs including 63 kilogram of opium valued millions of rupees.
Besides, the ASO conPiscated 15000 liters of smuggled Iranian HSD high speed diesel along with oil tanker with registration No: TTB687 valued Rs 675000, foreign origin 1,640 pieces of toiletries worth Rs882000, miscellaneous items in-
cluding pipe dari, gas water plastic pipe, diesel pump, gypsum powder, Rani juices, Naswar, choket shoes instant dry yeast/fruit juices, different Plavor sandals, chocolates vaseline and cashew nuts worth Rs5.1million and other items.
Senate adopts report of Sc on Budget 2017-18
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ISLAMABAD
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he Senate has adopted a report of its Standing Committee on Finance and Revenue on the Budget 2017-18. The Senate also rejected the budget proposal to validate all tax related Statutory Regulatory Orders that have been issued after the 18th amendment in the Constitution but became disputed after last year’s
Supreme Court judgment. The Senate has also rejected the budget proposal to delegate cabinet’s powers to the Pinance minister in tax matters. The government has proposed in the budget that the federal cabinet’s powers may be delegated to minister in-charge Pinance and revenue in matters of changing the scope and exempting the tax levies. The FBR would exercise these powers with prior approval of the Finance and Revenue Minister. Headed by Senator Saleem
Mandviwalla, the standing committee has prepared the report for the Senate after holding threadbare discussions on every tax proposal. The Senate sent the report to the National Assembly for voting. In Piscal matters, the Senate’s recommendations are not binding on the government but these do put into question the government’s moral authority to take decision on matters where Senate is in disagreement. The proposed amendment could raise constitutional issues, said Sen-
ator Mandviwalla. The Senate also opposed the government’s proposal to extend income tax concessions approved by the Economic Coordination Committee of the Cabinet for yet another year till end June 2018. The Senate has also recommended abolishing the Super Tax instead of extending it to the third year. Finance Minister had promised that the Super Tax would be levied only for Piscal year 2015-16. The Senate recommended 20 per cent
increase in salaries of federal government employees – double than what Finance Minister announced in his budget speech. The Senate has proposed that the FBR would not attach bank accounts in disputed tax case on payment of 10 per cent of the disputed amount. This is lower than 25 per cent proposed rate by the government. The Senate has also rejected the government’s proposal to withdraw the right of a taxpayer to amend the Wealth Statement after Piling it.
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Revenue department issues fee schedule for various documents ISLAMABAD: The Revenue Department of Islamabad Capital Terrority (ICT) issued fee schedule for various revenue documents and directed all revenue officials to strictly follow it. According to order issued by Additional Deputy Commissioner (Revenue) Rabia Aurengzaib, it has been directed to all the patwaris to be on time in their offices and timely issue ‘fard’ etc to the owners after their verification and completion of all legal formalities. According to fees schedule, Rs 50 has been fixed for ‘misal haqiqat’ per khata, Rs 100 for ‘Fard badar’, Rs 100 per family ‘Shajranasb’, Rs 25 per khasra of Register Gardawri of last five year, Rs 50 per report.
SHc orders customs to release menthol consignment
Wednesday June 21, 2017
National
Dg Valuation issues customs value of tropical multi system
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ingh High Court has ordered release of a consignment of menthol on payment of customs duty and taxes at rate of valuation ruling. The order was issued by a SHC appellate bench, comprising Justice Irfan Saadat Khan. Saarim Enterprises, importer of the consignment questioned the detention of the consignment as it valued the same at enhanced value on the orders of the Director General, Customs Valuation. Hyder Shaikh advocate appearing for the petitioner submitted that the DG Valuation has no powers of enhancement in value when Valuation Ruling holds field.
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Qamar Zaman reviews latest nAB initiatives ISLAMABAD
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ational Accountability Bureau Chairman Qamar Zaman Chaudhry has reviewed the latest progress on implementation of new initiatives taken by the NAB. He was chairing a meeting in Islamabad to review latest progress on the implementation of new initiatives taken by the NAB. The NAB chairman said that the Bureau’s new initiatives to eradicate corruption are being acknowledged by international organizations. He said that the top priority of NAB is to eradicate corruption with iron hands without any fear and favour across the board. He said that today NAB’s conviction ratio is about 76 percent which is a comparatively very high from other anti-corruption organizations in investigation of white collar crimes.
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he Directorate General of Customs Valuation has revised the customs value tropical multi system/ chiller type / ductless air conditioners vide Valuation Ruling No 1178/2017 under Section 25A of the Customs Act, 1969. According to details customs values of air conditioners were determined, under Section 25A of the Customs Act 1969, vide Valuation Ruling No.1053/2017, dated 23-022017. Several importers Piled revision petitions under section 25-D of the Customs Act, 1969 before the Director General of Customs Valuation. The Director General directed vide Order in Revision No. 343/2017 dated 24-05-2017 that Customs values for Window type and tropical multi systems/ductless air conditioners be re-determined and notiPied within three weeks of the issuance of the Revision Order. Therefore, this Directorate General initiated an exercise for determination of customs values of all types of tropical multi system/ ductless/chiller type air conditioners. Meeting with stakeholders was held on 06.06.2017. Importers had been requested to furnish the following documents before or during the course of meeting. Websites, names and E-mail addresses of known foreign manufacturers of the item in question through
which the actual current value can be ascertained. Copies of contracts made / LCs opened during the last three months showing the value of item in question. Copies of sales tax Invoices issued during last four months showing the difference in price (excluding duty and taxes) to substantiate that the benefit of difference in price is passed on to the local buyers. During the revision proceeding and during the course of the meet-
Directorate general initiated an exercise for determination of customs values of all types of tropical multi system/ ductless/chiller type air conditioners
Afu seizes mobile phones goods worth rs1.1m
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FAISALABAD
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he Customs Air Freight Unit (AFU) has confiscated over 20 pieces of smuggled LG phones and other miscellaneous items at the Faisalabad International Airport during a checking process of the passengers of Dubai Flight No: FZ-323. The AFU, under the supervision of Deputy Collector Falik Shair, in-
cluded Inspector Shahid Iqbal and Sepoy Mehboob Elahi intercepted a passenger Named Agha Farukh Hummyan son of Nazeer Khan, a resident of Allama Iqbal Town Lahore, was checked by the customs staff. The cartons were opened in the presence of two witnesses which led to the recovery of foreign origin Mobiles LG phones (20-Nos), Laptop Hard (50-Nos), USB (239Nos), Tripod Camera Lens (2-Nos), DSLR Camera (5-Nos), laptop (4Nos), movie camera (1-Nos), mo-
biles charger (40-Nos), Thuraya sim card (15-No) and other miscellaneous items of different brands. The customs team asked the passenger to show a receipt or invoices but he failed to provide any of them. The AFU seized the mobile and other items under Section 2(s) read with SRO 566(1)/2005 of the Customs Act-1969. The value of these mobile phones and items is estimated at Rs1.1million involving customs duty of Rs406422.
ing. The stakeholders agitated that Values determined vide the Valuation Ruling No.1053/2017, dated 23-02-2017 were much higher than the actual values. They were shown quotations taken by CHI 1;11 department from the market. At this they pointed out that the prices taken by the ailment to work back values of Tropical Multi System/ Ductless/ Chiller Type Air conditioners included installation costs.
cDnS achieves rs188b upto June 13 entral Directorate of National Savings (CDNS) has achieved Rs 188 billion savings till mid of last months of final quarter of current fiscal year, from July 1 to June 13, 2016-17. The target for the year 2016-17 was Rs 228 billion, while the Directorate managed to achieve Rs 218 billion for the previous fiscal year, a CDNS official.
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Pakistan’s liquid foreign reserves position KARACHI: The total liquid foreign reserves held by the country stood at US$ 20,157.8 million on June 2017. This was announced in a statement of the State Bank of Pakistan (SBP). It said that the break-up of the foreign reserves position is as under. Foreign reserves held by the State Bank of Pakistan: US$ 15,296.3 million Net foreign reserves held by commercial banks: US$ 4,861.5 million Total liquid foreign reserves: US$ 20,157.8 million during the week ending 09 June 2017, SBP’s reserves decreased by US$ 410 million to US$ 15,296 million.
Wednesday June 21, 2017
Business
‘rs90b to be spent on Bahadar Shah project’ LAHORE
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unjab Chief Minister Muhammad Shehbaz Sharif has inspected the 1230megawatt gas power plant in Haveli Bahadar Shah area of Jhang in detail. He visited different areas of the plant including the control room and expressed his satisfaction over the speed of work. The CM also held meetings with different engineers and workers there, says a handout issued here. Talking to them, he said that they were doing national service by working on a project of national importance and this role would always
irSA releases 321,900 cusecs water RAWALPINDI
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be remembered in the history. He said that the project was a milestone for overcoming load-shedding. He said that 750-megawatt electricity production would start within a week. This would help further decrease load-shedding, he added.
foreign companies to invest in pakistan’s Lng sector
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ndus River System Authority (IRSA) Monday released 321,900 cusecs water from various rim stations with inflow of 334,200 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1441.79 feet, which was 61.79 feet higher than its dead level 1380 feet. Water inflow in the dam was recorded as 168,900 cusecs while outflow 173,800 cusecs. The water level in the Jhelum River at Mangla Dam was 1182.80 feet.
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Electricity generation will start from Monday night at Haveli Bahadar Shah plant on trial basis. The Pirst turbine of this important project will start electricity production on trial basis, he added. He said that under the leadership of Prime Min-
ister Muhammad Nawaz Sharif, PML-N government’s efforts for overcoming load-shedding had started bearing fruit. While talking to the media persons during his visit to Haveli Bahadar Shah Power Plant, the chief minister said that we had to Pight both darkness as well as its supporters. He vowed that we would succeed on both fronts with the support of the people and grace of Almighty Allah. He said that the elements desirous of our failure in journey to development, in fact, want to see the people unsuccessful, but conscious people of Pakistan would not allow it to happen. He said that the development made in the energy production during the last four years had no example in the 70year history of Pakistan.
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orld major players are showing keen interest to invest in LiquePied Natural Gas (LNG) sector of Pakistan after seeing immense business potential of the commodity here. “LNG is the cheapest source of fuel and the world’s major players are showing interest to invest in LNG sector of Pakistan by setting up their own terminals and developing transmission network to supply the
commodity to consumers,” ofPicial sources in the Ministry of Petroleum and Natural Resources. They said the government wanted to involve private sector in this sector and there would be a ‘good news’ in next few weeks in this regard. Currently, the sources said 600 million cubic feet per day (mmcfd) LNG was being imported, which greatly helped in meeting the country’s energy requirements as all gas-based power generation plants were now functioning fully, 1200 CNG stations restarted their operations, industrial and fertilizer
sectors getting uninterrupted supply. Before LNG import, they said Pakistan was importing one million ton fertilizer per year and now it was exporting six million tons fertilizer, adding entire power generation sector was getting smooth gas supply, besides Nandipur power plant had also been converted on LNG. Answering a question, they said LNG import from Qatar would not affect in the prevailing political situation in Gulf, except any force majeure situation or any international sanction with regard to LNG export for Qatar.
LSM output grows by 5.58pc in 10-month ISLAMABAD
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he country’s large scale manufacturing (LSM) sector grew 5.58 percent during the first ten months (July-April) of the current fiscal year as compared to the corresponding period of the last year, mainly contributed by textiles and food & beverages. On year-on-year basis, the industrial growth increased 9.72 percent during April 2017 as compared to the corresponding period of the last year. However, on month-on-month basis, the industrial growth decreased 17.88 percent in April 2017 as compared to the growth of March 2017, according to the data of Pakistan Bureau of Statistics (PBS). The highest growth of 4.40 percent was witnessed in the indices monitored by the ministry of industries; followed by 1.08 percent growth in the products monitored by the Provincial Bureaus of Statistics and 0.10 growth in the indices of the Oil Companies Advisory Committee (OCAC). The major sectors that showed growth during July-March (2016-17) included textile (0.73 percent), food, beverages and tobacco (11.60 percent), coke and petroleum products (0.97 percent), pharmaceuticals (9.01 percent), non-metallic mineral products (6.54 percent), automobiles (11.41 percent), iron and steel products (20.26 percent).
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ADB, AfD approve $400m to accelerate energy reforms ISLAMABAD
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he Asian Development Bank (ADB) and the Agence Francaise de Development (AFD) Friday approved over $400 million in loans to support Pakistan’s efforts to provide a more reliable and secure energy sector. The $300 million in ADB assistance, the third such loan under the
Sustainable Energy Sector Reform program, brings the bank’s total Pinancing to $1 billion since 2014. AFD will add Euro 100 million in coPinancing. Xiaohong Yang, ADB’s Country Director for Pakistan and Tariq Mahmood Pasha, Secretary Economic Affairs Division (EAD) signed the ADB loan agreement. Finance Minister Mohammad Ishaq Dar witnessed the signing. “Pakistan’s ambitious energy reform program demonstrates the
government’s commitment to improve the reliability, sustainability, and affordability of the energy sector,” said Ms. Yang. “Maintaining the momentum for reform will help ensure that all Pakistanis have access to electricity, while keeping the economy on an inclusive, sustained growth path,” Yang added. Under the program, Pakistan has embarked on a substantial reform initiative that would reduce energy subsidies and adjust tariff policy, improve sector
performance and open the market to private participation, and increase accountability and transparency. The reform measures aim to address Pinancial viability and reduce costs to taxpayers. SpeciPic measures include recently agreed legislation that will improve governance through more clearly dePined roles for both the government and the energy sector regulator, and reduce debt levels in the energy sector. “As co-Pinancing partner in the re-
forms project, AFD is committed to promoting green energies in Pakistan through investments in lowcarbon-emission energy generation in line with COP21 Paris agreement approved by the Parliament of Pakistan,”said Jacky Amprou, AFD Country Director for Pakistan. ADB is Pakistan’s largest development partner in the energy sector with a focus on investments, reforms to strengthen governance and promote structural transformation.
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ederal Finance Minister Ishaq Dar has chaired a meeting at the Ministry of Finance to discuss the matters related to the Federal Board of Revenue (FBR). PM’s Special Assistant on Revenue Haroon Akhtar Khan, Pinance secretary, EAD secretary, FBR Chairman Dr Muhammad Irshad and senior ofPicials of the Ministry of Finance and FBR attended the meeting. The FBR chairman updated the minister on the latest status of tax collection during FY2016-17. He said that all efforts are being made to attain the collection target for the current Piscal year. He said that a comprehensive strategy is being Pinalised for tax collection in FY2017-18 and it would be presented to the Pinance minister in due course. The minister assured his full support to FBR for achieving the revenue targets for FY2017-18. He appreciated the contributions of FBR ofPicials in the preparation of the budget for FY2017-18, which has recently been passed by the Parliament. Dar urged the FBR to take all necessary measures to meet the tax collection target for the current Piscal year. He said that the prudent policies of the present government and the efforts of FBR had resulted in 60 percent growth in tax revenue collection between FY2012-13 and FY2015-16. He expressed the conPidence that the
measures announced in the budget for FY2017-18 will enhance the welfare and prosperity of the general public and enable Pakistan to achieve higher, sustainable and inclusive economic growth. Meanwhile, Minister for Finance Muhammad Ishaq Dar said Pakistan would be part of elite club of leading world economies G20 by 2030 according to predictions of international Pinancial institutions. Speaking at a contract signing ceremony of “Broadband for Sustainable Development Projects and National Incubation Centres”, he said the distinction of the four year government of Pakistan Muslim League(N) was that it ensured transparency and good governance. He emphasised that political pettiness should be buried and everybody should join hands for taking forward Pakistan’s economy. He said Pakistan signed agreements with Organization of Economic Cooperation and Development (OECD) in 2016, changed its laws and made its financial systems compatible with global standards to stop tax evasion. He said Pakistan Muslim League(N) led by Prime Minister Nawaz Sharif delivered what it promised and put the country on the path of sustainable prosperity. In April, he said, he met members of Pakistan-US Business Council in Washington and exchanged views with leading companies. The businessmen of United States expressed
technology industry. H ment would stay strengthen the econom spite all the negative ta ters. Ishaq urged the IT increasing exports of t the IT companies wou port of the governmen He said four years bac the verge of economic bankruptcy but since 2 economic outlook im from negative to stabl The minister said man and outside the countr Pakistan become sover cally strong. “We must d We have a clear vis and Prime Minister M Sharif have given a roa growth and developm that economy must b politics. “We shoul for economic country. Th y working on r a s es ll nec 2018-202 a e k a to t ion t r economi c B e l f l co he governm e tax id rg e d t h a t u s t r e e a D r. H me a o e loans ta t y s l e ur sc a esent riods of meas ent fi r r r p u e c h the of t r s and P o e f i d c t a i h ol t a rg e ent p Party, of fBr d s u t r r p o he x e eff a congrat t h t n i that t d t an rowth panies f 3 nmen ent g c r e 012-1 gover p 2 merous 0 Y 6 f n n ed i twee mation te re s u l t ion be t c e l l 6 short span 1 5 ue co 1
conPidence in the policies of PMLN government and appreciated its transparency in grant of projects. Ishaq Dar challenged that nobody could prove any Pinancial irregularity of the government in its last four years. He said the government had vigorously implemented its policies and took steps for digital and Pinancial inclusion of Pakistanis especially its youth. The plan was to digitally empower 50 percent of the country’s adult population in coming years, the minister added. He said in the new budget, incentives were announced for the expansion of information
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He said the governon and further my of Pakistan dealk of certain quarT sector to work for the country, adding uld get all out supnt. ck, Pakistan was on c collapse and faced 2013, the country’s mproved and went le to positive. ny enemies within ry did not want that reign and economidefeat their designs. sion for the country Muhammad Nawaz oadmap of economic ment.� He stressed be decoupled from ld have one charter progress of the he government is n implementing its 23 medium term ic strategy.� The ment had paid the aken during the pef Pervez Musharraf Pakistan People he reminded. He tulated the IT comfor undertaking nuprojects of inforechnology in a very n of time.
Wednesday, June 21, 2017
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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
Additional burden of loans
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he government is considering singing a $600 million loan program with the Asian Development Bank to continue the pace of energy sector reforms and maintain the country’s fast depleting foreign currency reserves to a certain levels.The government had to consult the Manila-based lending agency for the energy sector reforms and maintain the foreign exchange reserves in the wake of growing debt repayment obligations.However, the fresh injection of $600 million loans will add another $1.5 billion to the debt burden during the current fiscal year.The figure is $500 million more than the government’s budgetary estimates.The government is not tired of claiming that it has achieved financial stability during its three years rule, but most of its steps have proved to be utter failure. The government has so far received loans worth billions of dollars from every donor agency, but has failed to improve the financial conditions of its enterprises.The circular debt has crossed Rs400 billion mark and the balance of payment problem is coming as another financial shock for the nation. The addition of $1.5 billion to the already piling up loans is not a small amount as the government has already obtained $2 billion from China to deal with balance of payment problem. The foreign exchange reserves reach $15.7 billion after the government retired a portion of loans a couple of weeks ago. Unfortunately, the government has maintained had the so-called financial stability on the basis of foreign loans. The exports are declining, imports are increasing and the ensuing trade deficit would create only the worst economic scenario for the country in coming months. The World Bank has already raised the issue of circular debt but the government has amended the Fiscal Responsibility and Debt Limitation Act, 2005 to change the definition of total public debt. Brushing aside warning from donor agencies, the government believes the payment of external debt will only cause a limited pressure on the financial health as the external debt repayment obligations will not cross an average of $4.3 billion per annum. The country is expected to receive around $6.7 billion annual remittances from expatriate Pakistanis and it is hoped investment in the industrial sector will prove to be a blow of fresh air for the economy.
promising economic variables F
LAHORE
Dr AfTAB AfZAL
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inance Minister Ishaq Dar has set the GDP growth target at 6 percent for the fiscal year 2017-18 and 7 percent for the next year, saying the country will continue to travel on the road of progress and prosperity. However, the independent economists do not see any visible progress during the current fiscal year except the normal inflow of investment from China and some other countries. No doubt the country’s gross domestic product has crossed $300 mark, the population boom has spurred economic activi-
ties and market forces of demand and supply are working in their best. Yet the element of the government participation in the stimulation of the economy is missing. As the population is growing, people need houses, cloths, food and all other basic amenities of life. Most of the economic variables are best in their work and the government participation should at least be supporting. Unfortunately, corruption has come as a major hindrance in the way of business development. A new business concern brings windfall for the officials concerned and back gear in the business starts from the beginning. The only way to allow the market
forces to work independently is to clip the powers of the government machinery. The government of Pakistan Muslim League-Nawaz has presented its fifth budget before general elections in 2018, earmarking nearly Rs 4,757 billion in expenditures for the next fiscal year. The country has made good progress during the four year’s tenure, but the government could have done more. There are many many areas of concern screaming for attention but are ignored. When all the economic variables are in favour of the government, its performance could have far better than the current level, standard and rate. The basic
flaw is in the ruling elite which doesn’t have any team of economists and policymakers. All it has to do is to rely on the bureaucratic advice and decisions on every vital economic issue. The present economic policy of the government revolves around two factors.The first choice is to impose further taxes or raise the rate of existing taxes and the second option is to take loans to farther the economic agenda. This policy has landed the country into dangerous zone. The country needs practical steps to ensure real growth. This will not happen until the government sets its priorities at the first place.
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Dubai’s date trade tops $221 million in 2016 DUBAI: Dubai’s total date trade amounted to $221.7 million in 2016, of which exports accounted for the largest share ($85.1 million), followed by imports ($72.1 million) and re-exports ($64.5 million), according to a recent analysis by the Dubai Chamber of Commerce and Industry. Dubai’s export share of the emirate’s total date trade stood at 38 per cent in 2016. Compared to other emirates, Dubai was the top exporter of dates to other countries in 2015 with 96 per cent market share of the UAE’s date exports. The UAE’s share of global date exports stood at 8.5 per cent, or $96.3 million in 2015, according to data from Trade Map, making the country the world’s fourth largest exporter of dates. Southeast Asia and Mena were identified as the top importing regions for UAE dates. However, North America and Europe were also among the largest date importers.
nADrA to cooperate with fBr to expend tax net ISLAMABAD
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Wednesday June 21, 2017
Chambers
chinese investors to start JVs with pakistani entrepreneurs: fcci
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halid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry has called upon the National Database & Registration Authority (NADRA) to provide unconditional cooperation to FBR in identifying potential taxpayers as it was a national responsibility. He said it was encouraging that NADRA has shown its willingness to share a list of around 795,000 potential taxpayers who are not on the tax role with FBR. However, he said NADRA should not ask for any specific percentage of tax collected from these cases as its share because it was its national responsibility to help in efforts aimed at identifying new taxpayers in the country. He said NADRA’s support in such efforts would contribute positively
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in improving tax revenue and exports of the country. He said according to FBR’s own report, active taxpayers for the year 2015 were only 1.20 million out of which almost half was salaried class. He said Pakistan could not achieve better economic development without bringing more people into the tax net. He said no serious efforts were made in Pakistan to enhance the tax base due to which burden on existing taxpayers was increasing and this state of affairs was not proving conducive for the country. He said it was high time that FBR should focus on expanding tax net instead of putting more burden on the existing taxpayers. Khalid Iqbal Malik said that according to FBR’s own analysis, Pakistan has the potential to collect Rs.5500 to Rs.6000 billion tax revenue. However, he wondered why the FBR was not making strong efforts to exploit this huge tax potential for the betterment the country.
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rocess of industrialization will be started very soon during the 4th and last phase of China Pakistan Economic Corridor (CPEC) project and in this connection, Chinese investors would be fully facilitated to start joint ventures in collaboration with Pakistan entrepreneurs or establish their own independent high Tech industrial units in Pakistan, said Engineer Ahmad Hassan Vice President Faisalabad Chamber of commerce and Industry (FCCI). Talking to a delegation of Chinese Pirm NORINCO in his ofPice here, he said that he had invited this company during his last visit in China to visit Faisalabad and personally explore the possibilities of establishing industrial units in Faisalabad. “I had also informed them about the huge un-tapped potential of Faisalabad”, he said and added that he had invited them to visit Faisalabad and critically analyze the benePits of investment in Faisalabad. Engineer Ahmad Hassan further
told that they can start joint ventures in collaboration with local industrialist. He also briePly explained the salient feature of M-3 industrial estate. “This is one of the biggest and state-of-the-art industrial estates of Punjab sprawling over 4,500 acres of land. The management of M3 industrial estate is offering all necessary facilities to the investors under one roof. He further told that government has declared M-3 industrial estate as Special Economic Zone where 10 year
tax holding will also be available to the new industrial units. He told that another Chinese company CAME had also visit in Faisalabad and is now planning to make investment in Faisalabad. He was optimist that more Chinese companies will also come to Faisalabad and set up their modern and high Tech units here. Engineer Ahmad Hassan said that the management of Faisalabad Industrial Estate Development and Management Company (FIEDMC) will provide best facili-
SMes best tool for low-cost job creation ISLAMABAD
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ederation of Pakistan Chamber of Commerce and Industry (FPCCI) said the government should develop an effective strategy to attract Chinese investment in joint ventures in the SME sector which offer low-cost job creation and rapid poverty reduction. Chinese businessmen can help boost local SMEs through joint ventures in the industrial zones planned along CPEC, it said in a press releaae issued here. Technological cooperation between businessmen of Pakistan and China can also help and modernise existing SMEs through a transfer of technology, Chairman FPCCI Regional Committee on Industries Atif Ikram Sheikh said.
He said the development of the proposed industrial zones along the trade route will offer an opportunity for development of the SME sector which is the backbone of the economy. Atif Ikram Sheikh said development of the SME sector is necessary for equitable and inclusive economic growth and we must take advantage of the emerging opportunities. The business leader said cooperation between the two friendly nations will also ensure rapid transfer of technology which is necessary to modernise SMEs. China must support Pakistan in developing its comparatively advantageous industries in the mining, agriculture and manufacturing sectors, he demanded. Some of the fields in which joint ventures can be worked out include logistics, trucking, warehousing, fisheries,
horticulture, minerals, food processing, surgical instruments, construction, livestock, dairy, ICT, engineering, apparel, and cold storage and supply chain business, he noted. The business leader said many popular western companies buy products from Pakistan and sell them in the international market under their brand name while giving a very small share to local SMEs which must be tackled. SMEs constitute around 90 percent of the 3.2 million private enterprises; it employs around 70 percent of the non-agriculture labour force. These enterprises also contribute over 30 percent to GDP and 25 percent of the country’s total export earnings which can be increased substantially. The share of SMEs in the value-added manufacturing is estimated at 35 percent.
ties to the potential investors. Dr. YU Zhenghong Deputy General Manager and Won John Deputy General Manager Project Development NORINCO discussed various issues with Engineer Ahmad Hassan and told that Chinese government was also facilitating Chinese investors to set up new industrial units in Pakistan. He told that China Pakistan Economic Corridor will facilitate the smooth Plow of exportable surplus to the potential markets of this region.
Hcci demands ceTp for industrial areas he Hyderabad Chamber of Commerce and Industry (HCCI) Sunday hailed the Sindh government’s initiative of setting up combined effluent treatment plants (CETPs) in the SITE areas in Karachi and called for establsihing a similar CETP for SITE Hyderabad. “The industrial units in Hyderabad SITE can’t install an effluent treatment plant individually in all the units,”HCCI President Seth Goharullah said here in a statement. He lamented that the Sindh Environment Protection Authority’s (SEPA) actions for noncompliance of environment rules were hurting the industry. He requested the federal and provincial governments to equally share the total cost of setting up a CETP in Hyderabad. “The construction of that plant in Hyderabad is very necessary to protect the river and canal water from pollution,” he underscored. –CB Report
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Customs Inspector Sharif KK to retire on July 31 Wednesday June 21, 2017
Islamabad Assist collector Shah Samad granted performance allowance
ISLAMABAD: Muhammad Sharif KK, a Pakistan Customs Service officer of BS16, is going to retire from the government service on attaining the age of superannuation. The officer, presently posted as Inspector at Model Customs Collectorate, Hyderabad, will stand retired from the government service on July 31, 2017.
Sialkot Assist collector Mohtashim granted performance allowance
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hah Samad Hamadani, a Pakistan Customs Service officer of BS-17, selected through the process of internal job posting (IJP), has been granted performance allowance. The officer, presently posted as Assistant Collector (Prob), Model Customs Collectorate, Faisalabad, was granted performance allowance (equivalent to 100 per cent of basic pay) with effect from June, 2017. The grant of performance allowance will be governed through the terms and conditions laid down vide Circular No. C.No. 6(96)S(BIC)/2013-14 dated 06.03.2015 and will be discontinued in case prescribed terms and conditions are not fulfilled within one month from the date of issuance of this notification. Meanwhile, Mian Imtiaz Ali Shah, a Pakistan Customs Service of BS-16, selected through the process of internal job posting (IJP), has been granted performance allowance.
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Superintendent Mujahid allowed voluntary retirement ederal Board of Revenue has allowed voluntary retirement from the government service to Syed Mujahid Hussain Shah. The competent authority, on completion of 37 years qualifying service for pension, allowed voluntary retirement to Syed Mujahid Hussain Shah, last posted as Superintendent (BS-16) at Model Customs Collectorate of Appraisement, Lahore with effect from August 9, 2017. Meanwhile, Sardar Babar Durrani, a Pakistan Customs Service officer of BS-16, has retired from the government service on attaining the age of superannuation. The officer, last posted as Appraiser at Model Customs Collectorate of Appraisement (West), Karachi. –CB Report
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Ali Mohtashim Minhas, a Pakistan Customs Service officer of BS-17, selected through the process of internal job posting (IJP), has been granted performance allowance. The officer, presently posted as Assistant Collector at Model Customs Collectorate, Sialkot, was granted performance allowance (equivalent to 100 per cent of basic pay) with effect from June, 2017. The grant of performance allowance will be governed through the terms and conditions laid down vide Circular No. C.No. 6(96)S(BIC)/2013-14 dated 06.03.2015 and will be discontinued in case prescribed terms and
conditions are not fulfilled within
one month from the date of is-
suance of this notification.
islamabad warehouse earns rs7.15m thru auction
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ISLAMABAD
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he State Warehouse (SW) Airport Islamabad earned Rs7.15million of revenue through open public auction of various conPiscated goods held on the premises of Air Freight Unit (AFU) building on 15th of June’s Financial Year 2016-17. According to Ali Asad, Assistant Collector State Warehouse AFU Islamabad while talking to Customs Today, it was the 2nd public auction during Financial Year 201617. Telling details about the public auction held at the Benazir Bhutto International Airport Islamabad, he said the WH held 2nd public auction of different kinds of unclaimed, conPiscated and surrendered goods and contributed a handsome amount to the exchequer of current Financial Year 2016-17. He further said there is a considerable contribution of revenue by the Customs WH Islamabad under the supervision of Collector Model Customs Collectorate
(MCC) Islamabad Dr. Arslan. Telling the details about public auction held on 15th of June 2017, the Assistant Collector said the
auction held on Thursday was well organized and transparent. He told CT that auction was held following the standard customs
rules. The conPiscated goods set for public auction comprise pricey stones, textile fabric, Rolex watch, dish receivers and other items.
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Sindh proposes stern punishment for electronic monitoring ‘obstructers’ KARACHI: The Sindh government has proposed one-year imprisonment and Rs100,000 penalty for those who obstruct electronic monitoring and tracking of registered persons. Through Sindh Finance Bill 2017, a new section 54A to Sindh Sales Tax on Services Act 2011 is proposed to be inserted for monitoring or tracking by electronic or other means of registered person or class of registered persons or any of the services or class of services. A penalty of Rs 100,000 or an amount equal to the amount of tax involved, whichever is higher is proposed to be imposed on any person who refuses or denies or obstructs the compliance of the provisions of section 54A. It is also proposed that such person shall further be liable, upon conviction by a Special Judge, to imprisonment which may extend to one year, or with fine which may extend to Rs 100,000 or with both.
court sends suspect to jail involved in smuggling of high speed diesel KARACHI
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ustoms Court Judge Syed Faiz Rasool Rashdi has sent a suspect, Fida Hussain, to Central Jail Karachi on judicial remand who was booked for attempting to smuggle 50,000 litters Iranian diesel. During the hearing, investigation officer produced the suspect before the court and submitted that the customs authorities intercepted a Hino oil tanker registration number TMC-248 model 1994 having 50,000 liters high speed diesel which was being smuggling from Balochistan to Karachi. He further informed the court that during search, the driver, Fida Hussain was asked to produce any legal document regarding the oil, but he failed to produce any lawful documents. Therefore, he said the authorities
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seized the oil and arrested the suspect after registering a case against him. After his arguments, court sent him to jail on judicial remand and directed jail authorities to produce him on next date of hearing before the court. According to the prosecution, case was registered for violation of section (2) 16, 157 (2) of the customs act, (6) punishable under clauses (8) (89) of sub-section (1) read with sub section (2) of section of the Customs Act 1969. Meanwhile, Customs Court Judge Syed Faiz Rasool Rashdi has sent a suspect, Asif Iqbal son of Kala Khan, to customs department on physical remand. The suspect was booked in a case of illegal removal of dutiable/ contraband goods, evading duty and taxes to the tune of Rs 48,28, 567. During the hearing, the investigation officer informed the court that the suspect is involved in illegal removal of dutiable/ contraband goods i.e 15,900 kilograms (net fabric) in the garb of bed mattresses imported from UAE.
Wednesday June 21, 2017
Karachi
SHc seeks remarks from tax dept on petition filed by M/s fecto cement T
finance Bill strips tax whistleblowers of rewards KARACHI
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he Sindh High Court (SHC) has issued notices to the tax authorities and the deputy attorney general, directing them to Pile their respective para wise comments on a constitutional petition Piled by M/s Fecto Cement Limited against impugned recovery notice of Rs 67,872,570. A two-member bench, headed by Justice Aqeel Ahmed Abbasi, was hearing the petition. Earlier, counsel for the petitioner stated that Additional Commissioner Inland Revenue Audit RangeA, Zone-II passed an order for recovery of the disputed money without lawful reasons and authority. Being aggrieved, the petitioner moved Commissioner Inland Revenue Appeals-I and Piled an appeal along with stay application, which is still pending for disposal. However, the customs authorities have issued notice to the petitioner for recovery of the said amount. Citing Secretary Revenue Division, Chairman Federal Board of Revenue, Commissioner Inland Revenue Appeal Zone-I, Large Taxpayers Unit-I and others as respondents, pe-
he proposed Finance Bill 2017 has stripped the whistleblowers of rewards. Last year, the Federal Board of Revenue (FBR) introduced reward for whistleblower but in the new Finance Bill 2017 has proposed that informers will not be eligible for reward in case of information not supported by evidence. Section 227B of Income Tax Ordinance 2001, empowered FBR to sanction reward to whistleblowers in case of concealment or evasion of income tax, fraud, corruption or misconduct providing credible information leading to such detection of tax. The section further provides certain conditions whereby the claim of reward by the whistleblower shall be rejected. The bill introduces another condition by virtue of which the claim for reward by a whistleblower shall be rejected where the information provided by him is not supported by evidence.
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titioner pleaded the court may declare act of the respondents is illegal, mala Pide and arbitrary, he also pleaded the court may restrain them from taking any coercive measures till Pinal disposal of its appeal. Meanwhile, The Sindh High Court (SHC) has restrained the tax authorities from taking any coercive measures against the petitioner on a constitutional petition Piled by M/s Towellers Limited against a re-
covery notice issued by the Assistant Commissioner Inland Revenue Unit-II, Zone-I, Regional Tax OfPiceIII. While the hearing of petition, a two-member bench, headed by Justice Aqeel Ahmed Abbasi, also issued notices to the tax authorities and directed them to Pile their comments on the next date of hearing. Earlier, counsel for the petitioner submitted that the assistant commissioner Inland Revenue.
Sindh govt estimates 26% increase in tax collection
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he Sindh government has estimated 26 percent increase in tax collection to Rs185.62 billion during the fiscal year 2017-18 as compared with revised target of Rs147.39 billion in the outgoing fiscal year. According to provincial budget documents, the Sindh government has estimated to collect Rs12.87 billion as direct taxes, Rs123 billion as indirect taxes and Rs49.69 billion as other indirect taxes. The provincial government
has estimated Rs6.3 billion from property tax during next year, which is 34 percent higher, when compared with the expected collection of Rs4.7 billion in the fiscal year 2016/2017. The targets of other heads under direct taxes included: Agriculture income tax, Rs 1 billion; land revenue, 650 million; tax on profession, trade and calling, Rs425 million; and capital value tax on immovable property, Rs4.5 billion. The provincial government estimated revenue collection of Rs123 billion under indirect taxes, which is 29.47 percent
higher, when compared with expected collection of Rs95 billion in fiscal year 2016/2017. The collection of sales tax on services by Sindh Revenue Board (SRB) has been estimated at Rs100 billion, which is 28.2 percent higher than the projected collection of Rs78 billion in the current fiscal year. The Sindh government estimated Rs5 billion collection from provincial excise duty, Rs10.5 billion from stamp duty and Rs7.55 billion from motor vehicle tax. The provincial government estimated Rs49.69 billion from
other indirect taxes, which is 18 percent higher than current year’s expected collection of Rs41.99 billion. Under this tax, the revenue from Sindh Development Maintenance of Infrastructure cess has been the major component which was estimated at Rs46.5 billion, against the expected collection of Rs40 billion during the outgoing fiscal year. Under this segment, the provincial government estimated Rs65 million from entertainment tax, Rs2.68 billion from electricity, others Rs200 million and Rs250 million from cotton fee.
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Hyderabad warehouse earns Rs918000 thru auction & tax collection Wednesday June 21, 2017
National fTo adjourns hearing of case filed by Haq Bahu Steel Mills
HYDERABAD: Model Customs Collectorate’s Hyderabad State Warehouse deposited Rs918000 into the national exchequer. The amount was collected through auction and duty/taxes during the last week of May and first week of June 7, 2017. These goods were seized by the Anti-Smuggling Organization (ASO) on the instructions of Hyderabad Collector Akhlaq Ahmad Khattq under the supervision of Additional Collector Rehmatulah Vistro. The collectorate has released the seized consignment of foreign origin two Suzuki pickups and non-duty-paid 64 smuggled bundles of cloths after receiving the taxable duty and taxes of abovementioned amount during the last week.
pakistan losing rs40billion every year in cigarettes smuggling
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ederal Tax Ombudsman (FTO) Member Tariq Yousaf has adjourned the hearing of a case filed by Haq Bahu Steel Mills against the Regional Tax Office (RTO), Gujranwala. The FTO heard the case of Haq Bahu Steel Mills in which the counsel for the appellant argued that the RTO has not released the refunds to the appellant of the last two years. He said that the RTO collected excessive tax from the company during the last three years. The company approached the officer concerned many times for issuance of the refunds but the department did not pay the refunds after the passage of reasonable time. Finally, the appellant decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the RTO to clear the refund claims.
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faisalabad Adjudication decides 34 cases he Collectorate of Customs Adjudication decided 34 various seizure cases worth Rs82.101 million during the month of May 2017. According to the details, the Faisalabad Customs Adjudication decided 34 seizure cases formed by Anti Smuggling Organization (ASO) and Customs Intelligence and Investigation during the said period. Collector adjudication Mirza Mibashir Baig decided 5 seizure case involving Rs52.181 million. He settled all cases in favour of customs department, while no cases were decided in favour of taxpayer. The cases concluded by Additional Collector Muhammad Saeed Asad in May were eight and all verdicts issued in favor of customs department involving Rs18.52 million. –CB Report
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akistan is losing billions of rupees in annual excise revenue due to a large-scale and organised smuggling of internationally popular cigarette brands into Pakistan via Afghanistan. A report by Tobacco Farmers Welfare Association (TFWA) estimates an annual loss in revenue of more than Rs40billion due to illicit cigarette trade. The use of smuggled brands like Benson & Hedges, Dunhill, Marlboro, Pine and other cigarettes is increasing among Pakistani youth. Although big tobacco Pirms continue to increase their revenues yet Pakistan is suffering major economic losses. These smuggled brands are wreaking havoc on the
Pakistani economy and can easily be identiPied as being sold in the market without any pictorial health warning and do not have ‘Made in Pakistan’ stamp on them. The tobacco smuggling network operates under the Afghan Transit Trade (ATT) Agreement, which was
signed between the landlocked country of Afghanistan and Pakistan in 1965 with a view to providing Afghanistan with port access. As per agreement, goods bound for Afghanistan are allowed to be transported from the ports of Karachi and Bin Qasim to Afghanistan via
northern border towns of Torkham in KP and Chaman in Balochistan. This facility provided to Afghanistan is being misused as goods destined for Afghanistan are either pilfered inside Pakistan or are smuggled back into the country after reaching Torkham or Spin Boldak in Afghanistan. In 1996, the Pakistani government had banned the import of tobacco along with 16 other items to Afghanistan under the ATT; however as per agreed customs procedures under the 1965 agreement, goods declared by an Afghan importer as being for transit to Afghanistan are not checked or veriPied at the Karachi port. Other than that, there is no scanning facility available at the ports that can thoroughly check larger containers carrying transit goods worth billions of rupees.
Hyderabad customs earns rs302.541m cD & taxes during first week of June 2017 T
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he Model Customs Collectorate (MCC) Hyderabad has generated Rs302.541million customs duty and taxes during the Pirst week of June 2017. The department collected Rs74.057million customs duty, Rs224.849million sales tax, Rs0.500million federal excise duty (Special FED) and Rs3.135million Withholding Tax (WHT) during the abovementioned period. The MCC Hyderabad received revenue of Rs302.541million in the Pirst week of June 2017 and expects to achieve the target during June by Rs539.31million customs duty (CD), Rs2.071million sales taxes (ST), Rs4.2million federal excise duty (FED) and Rs37million withholding taxes (WHT) so the MCC has fetched to-
tal Rs2651.51million to the national exchanger. The major sources of tax revenue remained Hyderabad Dry Port State Warehouse, SukkurLarkana Division, Huffaz Seamless
Pipe Industries, Crescent Steel, Omni Polymer Industries, Rema Cooking Oil and Pakistan State Oil. The Anti-Smuggling Organization (ASO) also seized non-duty-paid goods worth million of rupees.
Under the supervision of Hyderabad Customs Collector Akhlaq Ahmad Khattaq, Additional Collector (HQ) Rehmatulah Vistro, Deputy Collector Mushtaq Shahani, Principal Appraiser Mashuq Ali Pahnwar and Statistical Revenue and others played an important role in revenue collection, officials said. Model Customs Collectorate (MCC) Hyderabad, Anti-Smuggling Organizations (ASO) Hyderabad, Sukkur and Larkana Divisions foiled various smuggling attempts and made big seizures of nonduty-paid items including vehicles, high speed diesel, cloths, fabrics, narcotics, diesel pumps, auto parts, cigarettes, mobiles phones, tyres and tubes, toys, crockery, toiletries and electronic items in different operations worth million of rupees during the two months including April and May of Financial Year (FY) 2017.
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Petrobangla, Swiss co ink MoU on LNG supply
World Customs
SWITZERLAND: State-owned Petrobangla signed a memorandum of understanding (MoU) with Switzerland-based private firm AOT Energy AG on Tuesday for procurement and supply of liquefied natural gas (LNG) to meet the country’s mounting energy demand. Under the MoU both the parties will initiate negotiations to settle the quantity and the price of LNG. “AOT Energy intends to supply LNG under term deal with Petrobangla,” said Aziz Ahmed, local representative of the Swiss company. He was optimistic about inking a term sheet over import of LNG within the next six years. As a trading firm, AOT Energy will be able to provide LNG to Petrobangla from different global sources, like — Australia, Indonesia and Qatar etc, he added.
Smuggled cigarettes worth nT$20m seized in kaohsiung aohsiung Customs officers seized a shipping container of smuggled cigarettes that were estimated to have a market value of about NT$20 million (US$676,000). The officers said that after checking the shipping list, they became suspicious of a container of goods being transshipped from Singapore and declared as polyethylene. They then ordered the goods unloaded from the container vessel for inspection. The container was found to contain 900 cartons of cigarettes worth an estimated NT$20 million. The Ministry of Finance and relevant central and local government agencies have adopted tougher measures to combat cigarette and tobacco smuggling since Oct. 20 last year in anticipation that a law that could double the health surcharge on cigarettes from NT$10 per pack to NT$20 from June 12 could spur smuggling. To date, more than 6.22 million packs of smuggled cigarettes have been confiscated during the six-month period. –CB Report
Malaysia seizes 300kg of pangolin scales
he Ministry of Finance (MoF) on Monday announced that the World Bank (WB) has announced a $186 million USD incentive package as part of the bank’s three year program to encourage reforms and fight corruption. MoF spokesman Ajmal Hamid Abdul Rahimzai said the money would be allocated to a number of major projects in the country. Meanwhile, economic commentators have said that the lack of a working economic strategy has kept Afghanistan dependent on foreign aid. “Unless now there is a visible and positive change in the lives of the families, we won’t be able to have a developed society,” said economic analyst Nabi Sadat. –CB Report
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iraqi students held at kiA with pharma drugs worth 2.17 crore wo Iraqi B.Pharma students who attempted to smuggle pharmaceutical drugs worth over Rs 2.17 crore in 11 strolleys from Bengaluru to Doha were arrested at Kempegowda International Airport (KIA) by Bengaluru Customs officials. Sources with the Air Intelligence Unit (AIU) of the Customs identified the duo as Mostafa Ismael Dawood, 27, a student of a college affiliated to Rajiv Gandhi University of Health Sciences and Mohammed Razaq Mahdi, 27, from Nagarjuna University in Guntur, Andhra Pradesh. They had booked tickets for the Qatar Airways flight QR 573 to Doha and were scheduled to leave KIA early. “The two men checked-in a total of 11 bags and were waiting to board the flight. Our sleuths found something suspicious about their activity and questioned them. The bags were recalled and opened and a cache of medicines, including ointments and tablet strips, was found,” said an AIU officer. Daw ood and Mahdi had illegally purchased all the medicines and planned to smuggle them to Qatar en route to Iraq, possibly by air or road at the behest two other Iraqi nationals stationed in Bengaluru, officers said. However, it’s uncertain if the students were acting as carriers for racketeers involved in smuggling pharmaceutical drugs in bulk from Asian countries to Europe and the US via the Gulf. –CB Report
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world Bank grants $186 million to finance ministry
Wednesday June 21, 2017
KUALA LUMPUR
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alaysian customs officers have seized almost 300 kilograms of pangolin scales being smuggled through the main airport, officials said. The 288-kilogram (635 pound) haul was found at Kuala Lumpur International Airport last Friday in 12 boxes labelled as oyster shells on the waybill. The scales worth around 3.69 million ringgit ($870,000) arrived from Ghana on
a Turkish Airlines flight, the customs department said in a statement. Authorities are investigating. The scales of the endangered pangolin, the world’s most heavily trafficked mammal, are highly prized in Vietnam and China where they are misleadingly touted as having medicinal properties. Malaysia last month made its largest haul of such scales, 712 kilograms estimated to be worth more than nine million ringgit. Pangolins are indigenous to the jungles of Indonesia, parts of Malaysia and areas of southern Thailand, and their meat is considered a delicacy in China. Four pan-
golin species can also be found in Africa. Increasingly they are smuggled to Southeast Asia from Africa, but the majority go to China. Soaring demand has seen an estimated one million pangolins plucked from Asian and African forests over the past decade. Meanwhile, The Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) Terengganu seized 100 pairs of fake Siti Khadijah brand ‘telekung’ (an outfit worn by Muslim women during prayers) worth RM12,000 in a raid yesterday. Its director, Azlan Abdul Samat said it was the first such seizure in Malaysia thus far.
new Amman customs centre opens in Madouneh AMMAN
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eputising for His Majesty King Abdullah, Prime Minister Hani Mulki on Monday inaugurated the Amman Customs Centre project in Madouneh, worth JD93 million, Pinanced by the Social Security Investment Fund (SSIF). The project, implemented by the government in cooperation with the private sector on the build-operate-
transfer principle, is one of the strategic development schemes aimed to increase investments in East Amman, the Jordan News Agency, Petra, reported. Mulki said that the project is located on the Amman Development Corridor, a vital highway inaugurated some two months ago, and in an area that needs development to attract more investments and urbanisation. This project will be staffed by 100 engineers and 300 workers from the local workforce, the pre-
mier said, adding that the scheme marks the beginning of genuine cooperation between the public and private sectors in employing Jordanians. Public Works and Housing Minister Sami Halaseh noted that the new customs centre was designed according to modern international standards, as recommended by the Jordan Customs Department. The facility’s area stands at 1,350 dunums and will accommodate up to 900 trucks simultaneously, explained
Halaseh, adding that it is expandable to lodge 256 extra trucks. The compound houses 320 customs clearance ofPices. Electronic systems will be installed to monitor all procedures within the centre, in addition to an online system set to receive customs applications in a way that reduces direct contact between citizens and customs ofPicials. Designed by Jordanian engineering companies, the construction will be handled by Jordanian workforce through a Jordanian contractor, the minister stated.
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Customs Appellate Tribunal adjourns all cases for next hearings Wednesday June 21, 2017
Lahore
LAHORE: The Customs Appellate Tribunal’s Division Bench-II (single and double), comprising Judicial Member Omer Arshad Hakeem and Member Technical Imran Tariq, heard 12 cases and adjourned all of them until the next hearing. The Customs Appellate Tribunal’s single bench, comprising Imran Tariq, heard four cases including Yousaf & Brothers versus Customs Lahore, Aishiq Ali versus Customs Faisalabad, Directorate Post Clearance Audit (PCA) Lahore versus Rodulf Pakistan and Muhammad Akram versus Directorate of Intelligence and Investigation Faisalabad.
customs tribunal upholds adjudication order in Mazda smuggling case LAHORE
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he Customs Appellate Tribunal upheld a customs appeal Piled by Rao Muhammad Asim against Deputy Collector Adjudication Multan and others. The tribunal declared that instant customs appeal, being devoid of merit, is dismissed with no order. Omer Arshed Hakeem, Member Judicial Bench-II, gave remarks in the judgement that after the examination of the record, tribunal found that appellant failed to establish the factum of lawful possession of imported Mazda mini truck. As per brief history of the case, staff of the Customs Intelligence and Investigation-FBR Multan intercepted a Mazda mini pickup. On de-
court adjourns hearing of alleged gold smuggler he Special Federal Court of Customs Taxation and Anti-Smuggling has postponed the case of the accused arrested by the customs authorities from Lahore Airport. Sources told Customs Today that a suspect, Ibrar Islam, was arrested by the Customs Preventive from the Allama Iqbal International Airport while he was travelling for Muscat. During a search of his luggage, the customs officials found 550 gram gold that he was trying to smuggle from Lahore into the gulf state. The customs registered a case against Ibrar and seized the gold. The customs investigation and prosecution team presented him before the customs court and sought his physical remand which the court approved for three days. He has also got a bail from the court later. The customs authorities have registered a case against him under the Pakistan Customs Act-196. –CB Report
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mand, the driver produced the registration book and the authorities found that said vehicle was smuggled/ non-duty-paid therefore the same was impounded under Section 168 of the Customs Act-1969. After a show cause notice, the adjudication authority heard the case and, after a detailed veriPication, passed the Order-In-Original that Mazda be impounded outright. Being aggrieved from the order, the appellant Piled a case before the collector of customs (Appeals) who also heard the case and upheld the order of the adjudication. Appellant, being dissatisPied with the order, Piled the case before the customs appellate tribunal on the grounds that Order-In-Original is not good in law so complainant should also produce some documents regarding the lawful import of the vehicle. On the other side, the counsel for recipient denied all the allegations and requested for the dismissal of appeal.
court rejects bail plea of accused involved in smuggling
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he Special Federal Court of Customs Taxation and Anti Smuggling has rejected the
LHc stops fBr from advance tax collection from three trains
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he Lahore High Court (LHC) has restrained the Federal Board of Revenue (FBR) from the advance tax collection from three trains. The FBR had sent notices to three trains of Rs200million in advance tax which is payable by the trains management which was challenged in the Lahore High Court. On Thursday, the Lahore High Court (LHC) heard the petition Piled against the advance tax notice to three trains. Tafazal Rizvi appeared before the court on behalf of the appellant
and argued that the commissioner Inland Revenue (CIR) exempted trains from advance tax on the one hand and, on the other side, FBR sent notice for advance tax of Rs20million for a week and Rs200million collectively. He prayed the court for the suspension of the notice sent by the FBR. After hearing the arguments from complainant’s side, the LHC stopped the FBR from tax collection till the decision given by the court and the case has been adjourned for the next date of hearing. –CB Report
post arrest bail plea of an accused Agha Farrukh who was arrested in mobile smuggling case. According to details an accused Agha Farukh was arrested by the Customs Investigation authorities from Faisalabad after investigation from the accused Tayab Manzoor who is in judicial remand now. Accused Agha Farukh is
a facilitator of Tayab Manzoor who is involved in smuggling of mobile phones. Earlier the Customs Taxation and Anti Smuggling Court has approved 14 days judicial remand of the accused who was arrested by the customs authorities from Faisalabad. Sources told Customs Today that accused Tayyab Manzoor was booked by the customs Preventive from Faisalabad International airport while he reached at airport from Bahrain. Accused Tayab was travelling via Plight of Gulf Airways. During search of the luggage of the goods Customs Preventive found mobile phones that he was trying to smuggle. Customs authorities has registered a case against the accused Tayyab and launched investigations as well after conPiscating the cell phones that he was trying to smuggle. Worth of the cell phones is more than Rs 5 million. Customs authorities after registered a case against him under Pakistan Customs Act 1969.
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rs4 tax evader’s plea disposed of by court n alleged accused Mian Talat Mehmood, involved in a tax evasion of Rs4billion, moved the Lahore High Court for post-arrest bail as the customs court had rejected the bail plea but on Friday also disposed of it. The Lahore High Court had transferred the application of the bail plea of the Orient company Managing Director to a notiPied judge of customs cases Justice Abdul Sami Khan. He further heard the bail plea of the accused and rejected his plea. Managing Director of a Pakistan’s leading electronic manufacturing
company was arrested by the Inland Revenue Department Lahore. He was allegedly involved in a huge amount of tax evasion. The total amount of tax evasion is Rs4billion which is one of the largest tax evasion cases of Lahore. –CB Report
fBr seeks record of MBi after finding it tax defaulter of rs41m
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LAHORE
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he Federal Board of Revenue has asked for all the record of a paint distribution company MBI as it has been found in a huge tax evasion of Rs41million in two years. According to Customs Today, the Federal Board of Revenue has
written a letter to the Lahore Development Authority, Excise and NADRA to provide the record of the company. The FBR has asked for record of all the vehicles of the company. It is pertinent to mention here that the FBR has also asked all the banks to freeze all the accounts of the company. Sources told Customs Today that the MBI distribution is a huge company with large revenues
and distribution chains in Pakistan. In another action, the FBR has attached the bank accounts of the Paramount Engineering Company. The company has been a defaulter of income tax from 2014 to 2016. Sources said that many notices were served on the company but it failed to submit its tax returns. Now the FBR has attached its bank accounts and recovered Rs485000. The bank ac-
count of Badami Bagh branch was frozen by the FBR. Meanwhile in another action on Tuesday, the FBR has attached the bank account of a citizen Farzand Ali and also recovered Rs350000. Inspector Waqar Haider and Muhammad Akram Haider conducted the action against Farzand Ali. Although he has different kinds of businesses yet he is not even registered with the FBR for income tax.
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LA Port to Go Emission-Free by 2035 WASHINGTON: Los Angeles’s Mayor has committed the city-owned ports of Los Angeles and Long Beach to publish a plan for zero-emissions trucks and yard equipment in coming months, according to the Los Angeles Times. Declarations signed by Los Angeles Mayor Eric Garnett on July 12, 2017 will move along the updated pollution-reduction plan under development by the ports. It commits the them to approving a new plan by November to cut pollution entirely from diesel-powered freight-hauling vehicles and cargo handing equipment. A zero-emission cargo-handling equipment deadline has been is set for 2030 and for zero-emission trucks for 2035.
four ships take berth at port Qasim our ships M.V Senorita, M.T Gaspian Gas, M.T Maritime Lira and M.T Lion-M carrying 57,031 tonnes Coal, 1,611 tonnes LPG, 29,275 tonnes Palm oil and 69,101 tonnes Furnace oil were arranged berthing at Pakistan International Bulk Terminal, SSGC Terminal, Liquid Cargo Terminal and FOTCO Oil Terminal respectively during last 24 hours, said a report issued by Port Qasim Authority (PQA). Meanwhile five more ships MSC Pine, Sun Plaeg, YM Jupiter, NCC Maha and Friendly Seas with Containers, Palm oil and Coal also arrived at outer encourage of Port Qasim during last 24 hours. Berth occupancy remained on high side at the port at 75% on Sunday where a total of twelve ships namely, TG Poseidon, CMA CGM Puget, Hugo Schulte, Senorita, Lian Hua Song, Anthemis, Nord Destiny, North Gas,
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Caspian Gas, Solaris, Maritime Lira and Lion-M Chemroad were occupied PQA berths to load/offload Containers, General Cargo, Coal, Canola Seeds, Soya Bean Seeds, LPG, LNG, Palm oil and Furnace oil respectively. Cargo handling registered an upward trend at the port where a cargo volume of 146,930 tonnes, comprising 113,262 tonnes import cargo and 33,668 tonnes export cargo inclusive of containerized cargo carried in 3,109 containers TUEs) 1,337 imports TUEs and 1,772 TUEs exports) was handled during last 24 hours. Two ships, Gas carrier Solaris and Container Vessel CMA CGM Puget sailed out to sea on Monday morning, while three more ships M.V Lian Hua Song, C.V TG Poseidon and M.T Caspian Gas are expected to sail on same day. –CB Report
Ports & Shipping
new Sudanese port on red sea coast to export cattle KHARTOUM
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n October, Sudan will inaugurate on the Red Sea coast the “Shaikh Ibrahim” port, which is specialized in cattle export, which reached around 2.5 million livestock including cows and camels during 2017 Q1. China Harbor Engineering Company Ltd. (CHEC) was awarded the contract to operate the port project, as part of long-term contracts signed with the Sudanese government to rehabilitate and develop four local ports on the Red Sea coasts. Dr. Jalal Eldin Mohamed Ahmed Shelia, general manager of Sea Ports Corporation, said “Shaikh Ibrahim” is the Pirst port specialized in exporting cattle on the Red Sea coast in eastern Sudan. He pointed out that preparations have ended and the port will be inaugurated in October to replace the “Othman Dakna” port currently exporting livestock. Shelia explained that the new port will absorb the growth of
exported cattle, which reached over 2.5 million worth $225 million during 2017 Q1, compared to $247 million during the same period last year. The general manager of Sea Ports Corporation said CHEC is a high-qualiPied Pirm that executed many port-related projects. A delegation of Sudanese experts recently visited China and inked a cooperation and partnership agreement to develop the Sudanese ports, he added. As part of the offered oppor-
tunities to invest in the new port, Malaysia announced it is interested in investing in Sudan’s livestock and Pish Sudan’s Minister of Livestock, Pastures and Fisheries discussed with the Malaysian Ambassador to Khartoum the anticipated investments. The minister asserted that his country is ready to facilitate Malaysian investments in this sector, and will provide the technical support to establish Malaysian slaughterhouses in Sudan.
Wednesday June 21, 2017
Hull port adds Baltic short sea service ort of Hull’s operator, Associated British Ports (ABP) has said that feeder operator Unifeeder added a second container short sea route to the UK via the Baltics. Already Unifeeder operates a short sea freight service from the Baltics to the UK region of Humber. Its new Lithuania-Hull service will complement its existing weekly sailing from Lithuania-Immingham, which departs from Klaipeda in Lithuania and also calls at two Polish ports, Gydnia and Szczecin. Adding the sailing, which also routes via Gydnia in Poland, Unifeeder plans to double weekly capacity on this route. It says it is meeting demand for unitized cargo from manufacturers in the Baltics and Poland. It expects the container short sea service will compete with daily Ro-Ro ferry traffic, which accounts for a large part of cargo shipment to the UK. Already ABP has invested in the two UK container terminals at Hull and Immingham. Pouring in a total of £50m, Unifeeder has allocated £15m to be put towards improving Hull Container Terminal by adding two new Liebherr ship-to-shore container cranes in 2018. –CB Report
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Marine pilots shortage may affect ship movement WASHINGTON
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hortage of marine pilots is likely to impact ship movements in major ports, unless the Shipping Ministry steps up efforts to strengthen the marine services commensurate with the growth in ports. Poaching of pilots by foreign as well as private ports offering phenomenal hike in remuneration is said to be the reason for the shortage. Highly placed sources in the shipping sector told BusinessLine that ports of Kuwait had recently conducted a recruitment drive in Mumbai and taken seven pilots providing them with hefty salaries. Pilots shortage assumes greater signiPicance for ship movements within the port waters especially in the wake of increased ship calls in major ports. With additional infrastructure
being added to the port by way of terminals, JK Thomas, President, Nautical India SW Branch, said attention should be paid to supplement the pilot strength to handle additional trafPic. The entry and exit from ports is the most dangerous leg of sea voyage , he said citing the some of the marine accidents in Indian ports in recent years. In developed countries, according to Thomas, marine pilots are among the highest paid professionals. But government-owned major ports are reluctant to offer them wages prevailing in the market. The result: ports are struggling to Pind enough pilots and more importantly, retain their services. Many ports tried to overcome this situation through recruitment on contract basis offering better salaries. But this was only a temporary solution, as these pilots could leave the job at any time, he said. With more pilots
on contract, there is a shortage of ofPicers to Pill up the post of Dock Masters, Harbour Masters and Deputy Conservators in major ports, he added. Highlighting the case of Kochi Port, informed sources pointed out that the ship movements have increased by 12.5 per cent from 7.6 per cent in the past one year and this has put considerable pressure on existing pilots. Increased cruise trafPic has also contributed to the surge in ship movements. The situation is set to grow further with the completion of BPCL-Kochi RePinery expansion, commissioning of LPG terminal, completion of the LNG pipeline, connectivity and the continued growth of containers at Vallarpadam terminal. Meanwhile, After having put up a tough Pight to safeguard Sri Lankan interests (and control) in negotiations with China over Hambantota port and related investments, former
Ports Minister Arjuna Ranatunga, as Minister of Petroleum Resources now faces the challenge of handling another political hot potato, the Oil Tank Farm in Trincomalee, where India seeks to extend its grip with projects that will (reportedly) include “A Port, Petroleum RePinery and other industries.” Again he will be dealing with strategic assets where the outcome of negotiations will have far reaching consequences. Recent developments show that the Colombo Port too has now come into the mix. It may not have been immediately evident to the casual observer, but the Indian proposed“LNG Terminal / Floating Storage RegasiPication Unit (FSRU) in Kerawalapitiya/Colombo,” referred to in the MoU signed during Prime Minister Ranil Wickremesinghe’s trip to Delhi in April, will actually translate into India having a stake in the Colombo Port.
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Faisalabad AFU seizes 451 mobile phones valued Rs5.2m FAISALABAD: The Model Customs Collectorate, (MCC) Air Freight Unit (AFU) Faisalabad, has confiscated over 451 pieces of smuggled foreign origin mobile phones at the Faisalabad International Airport during a checking of a Bahrain Flight No: GFA-790. The total cost of the impounded mobile phones is about Rs5.2 involving customs duty and taxes of Rs902855. The mobile phones were brought from Bahrain by above said flight to Faisalabad.
Wednesday, June 21, 2017
CUSTOMS BULLETIN
customs gpo foils bid to smuggle 2 kg heroin worth rs20m from carton ISLAMABAD TAriQ DerYA
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ustoms International Mail OfPice (IMO)at GPO Islamabad seized 2 kilogram of Pine quality heroin from parcel concealed in layers of a cartoon made by paper, the heroin was shipped for United Kingdom (UK), and the IMO doing raids for arrest of the criminal involve in above said seize, the worth of seized 02 kilogram of heroin was estimated Rs.20 million. Collector Dr. Arslan informed Customs Today that during routine checking the team of customs department under the supervision Inspector Shabbir found a suspicious parcel (carton) and informed the assistant collector IMO about it, after getting permission the inspector open the parcel and found the Pine quality of heroin which was tactfully concealed in paper carton. The Collector informed Customs Today that the seized heroin consignment was booked from GPO Islamabad and was shipped to UK. He said that under following the orders of Member Customs Zahid Kokhar the collector Islamabad had taken tight rummaging and checking
measures by snifPing dogs at Islamabad Air port the Heroin Smugglers tried to send their consignments via IMO Islamabad. He said that Collector Model Customs Collectorate Islamabad already ordered to tight
the checking measures at IMO during Ramazan as for as during holidays of Eid, he was adding that notorious people tried to shipped drugs consignments during these days concealing drugs in greeting
cards and gift parcels. He said that he had made an appreciation call to IMO staff for seized huge quantity of heroin he was adding that he was expecting that huge attempt of drugs will be tried during month of
June before Eid holidays he adding that he has informed his staff posted at IMO and Air port to be careful during above said days because the smugglers will try to send more drugs consignments.
kp govt imposes new taxes on property, cng & fuel stations PESHAWAR
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he Khyber Pakhtunkhwa government, in its Finance Bill 2017, has imposed new taxes on property, CNG & fuel stations. The provincial government proposed to exempt services, money transfer, construction of bridges, gas supply, sanitation services, and registration of vehicles registered in other provinces from the imposition
of General Sales Tax (GST). However, besides increase in tax ratio, new taxes on immoveable urban property (IUP), CNG plus general store, petrol pumps and service stations are being levied. The Pinance bill was presented by Provincial Minister for Finance Muzaffar Said in the provincial assembly on Wednesday. The provincial departments have failed to achieve the revenue targets for the outgoing Pinancial year 201617 rather they declared as compare to last Piscal year. According to the statistics of the previous Pinancial year, the provincial government had collected 70.4% of the revenue
target, but during the current Piscal year, the ratio had declined to 64.4%. According to revenue proposals of Pinance bill, tax ratio on immoveable urban property is being increased by 50% while tax on personal residence in the provincial metropolis, the tax ratio on Pive marla ‘category A house’ has been increased from Rs 1000 to Rs 1500, Category B from Rs 900 to Rs 1300 and Category C from Rs 750 to Rs 1100 respectively. Similarly, tax on 5 marla to 10 marla ‘category A’ has been increased from Rs 1700 to Rs 2500, Category B from Rs 1600 to Rs 2400 and Category C from Rs 1500 to Rs
2300 respectively. Furthermore, for immoveable urban property on over 10 marla to 15 marla for ‘category A’ has been increased from Rs 2200 to Rs 3300, category B from Rs 2100 to Rs 3100 while tax on ‘Category C’ has been increased from Rs 2100 /to Rs 3000 respectively. Tax on 15 marla upto 18 marla category A immoveable urban property has been proposed to increase from Rs 3300 to Rs 4800, Category B from Rs 3200/ to Rs 4700 and Category C from Rs 3000 to Rs 4500 while increase in tax for Category A immoveable property of over 30 marla to 40 marla has been proposed from
Published by M S Raza Off# 42, 3rd Flr Gull Plaza M.A Road Karachi, Printed by (Ibne Hassan Offset Printing Press, Shop No. 33 to 36 , Hockey Stadium, Karachi).
Rs 20000 to Rs 30000, Category B (from Rs 18000 to Rs 27000) and Category C (from Rs 16000 to Rs 24000) respectively. According to budget proposals tax on category A immoveable property of over 40 marla has been increased from Rs 30000 to Rs 45000, Category B from Rs 25000 to Rs 37500 and Category C from Rs 20000 to Rs 30000/ Similarly, property tax on the CNG stations and petrol pumps having general store has been increased from Rs 15000 to Rs 22500 while tax on CNG stations and petrol pumps sans such facilities have been increased from Rs 7500 to Rs 11300.