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hairman Federal Board of Revenue (FBR) Dr. Muhammad Irshad’s two month contract will be expired on 30th June 2017. It is strongly expected that Director General Intelligence and Investigation Khawaja Tanvir Ahmed will become new chairman of Federal Board Revenue. Sources told Customs Today that there are more names on list for chairman FBR’s post but
Director General Intelligence Inland Revenue Khawaja Tanvir’s name is top of the list while current Member Operations Rehmat Ullah Khan Wazir is second favourite candidate. According to sources, Khawaja Tanvir is grade 22 ofRicer of Inland Revenue Services and right now he is very close to Special Assistant to Prime Minister for Revenue Haroon Akhtar. While Member Operations Rehmat Ullah Khan Wazir is grade 21 ofRicer and he is likely to be promoted in grade 22. It is pertinent to mention here that some cir-
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cles of FBR are taking the name of Tariq Pasha and other grade 22 ofRicers of FBR like Rozi Khan Burki and Raana Seerat to become next chairman FBR. According to sources, Haroon Akhtar has recommended the name of Director General Intelligence & Investigation Inland Revenue as new chairman Federal Board of Revenue to Federal Finance Minister Ishaq Dar and announcement in this regard is expected in third week of June after formal approval of Prime Minister Muhammad Nawaz Sharif.
DG Valuation revises customs values of cooking range hood/ chimney
Faisalabad Customs earns Rs7.736 million through auction
Dr Ayesha to present Punjab budget on June 2
PCA detects duty, taxes evasion of Rs 230,874 by M/s Saleem Silk Centre
‘Financial year targets’of RTOs may suffer due to pending audit settlements’
DG Valuation has revised the customs valuesofcookingrangehood/chimneyvide | See pAge 02 |
Customsauctioncommitteehasconducted auction of seized smuggled items | See pAge 03 |
DrAyeshawillpresenttheprovincialbudget for financial year 2017-18 on Friday | See pAge 04 |
PCAhassummonedM/sSaleemSilkCentre in a case involving duty and tax evasion | See pAge 14 |
RTOshavefailedtofollowtheFBRchairman’s instructionsregardingsettlementsof audits | See pAge 16 |
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Adjudication ADC orders release of generator & vehicle to owner Friday, June 2, 2017
National
FAISALABAD: Collectorate of Customs Adjudication Additional Collector Muhammad Saeed Asad ordered the release of a generator and a carrier vehicle to its lawful owner. Muhammad Saeed Asad has issued Order-in-Original (ONO) while hearing a case against Rafaqat Khan S/o of Muhammad Ashraf. Deputy Collector (DC) ASO Sargodha received a tip-off regarding the smuggling of used diesel generator 455-KVA caterpillar company modelled 2006 loaded on carrier vehicle Nissan truck No: LEI-15A-669. The team confiscated the generator near Jhal Chakian, Khushab Road, Sargodha.
Dg Valuation revises customs values of cooking range hood/ chimney
FBr seizes record of Faraz Manan in rs20 million tax evasion LAHORE
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ederal Board of Revenue has confiscated the sales and production record of a famous fashion designer Faraz Manan. According to sources of Customs Today on Friday, a raid was conducted on the fashion designer’s office located in Gulberg. Federal Board of Revenue has also started investigation after confiscation of the record and statements. Said fashion designer was working without paying any sales tax. Faraz Manan has a big network in Pakistan and abroad as well. In last year’s lawn campaign, Faraz Manan has signed an Indian actress, Karena Kapoor, as fashion model for his brand at a very high price. He was not paying tax even it was earning millions of rupees. He has incurred a loss of Rs20million to the national kitty, sources has informed Customs Today. Federal Board of Revenue had already sent many notices to the designer, but he didn’t pay any attention and even not registered their brand. On the other hand, Faraz Manan said they didn’t receive any notice from the FBR.
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he Directorate General of Customs Valuation has revised the customs values of cooking range hood/chimney vide Valuation Ruling No 1170/2017 under Section 25A of the Customs Act 1969. Custom’s values of cooking range hood/chimney were determined under Section 25A of the Customs Act 1969, vide Valuation Ruling No.407/2011, dated 23-12-2011. The valuation ruling required revision in line with the prevailing prices in the international market. Therefore, this Directorate General initiated an exercise for determination of customs values of cooking range hood/chimney. Meetings with stakeholders were held on 1402-2017 and 24-05-2017. Importers had been requested to furnish invoices of imports during last three months showing factual value. 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 beneRit of difference in price is
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passed on to the local buyers. No documents were submitted in this Directorate General on or even before the said scheduled meeting. During the course of the meeting, the stakeholders claimed that the values of cooking range hood/chimney of China origin have not increased in the international market as compared to the values determined in the valuation ruling of 25-A. They were requested to submit import invoices,
sales tax invoices, literature, evidences and other relevant requisite import documents in support of their contentions. But they failed to provide any document or evidence to substantiate their contentions. Method adopted to determine Customs values: Valuation methods given in Section 25 of the Customs Act, 1969 were followed to arrive at customs values of Cooking Range Hood/Chimney. Transaction value
method provided in Section 25 ( ) was found inapplicable owing to wide variation in the values being declared to the customs. Identical / similar goods value methods provided in Section 25 (5) & (6) were examined for applicability to the valuation issue in the instant case which provided some reference values of the subject goods but the same could not be exclusively relied upon due to wide variation in declared values of subject goods.
govt gives several sales tax exemptions in budget F
ISLAMABAD
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inance Minister Ishaq Dar has announced several sales tax exemptions in federal budget 2017-18. Due to complications in payment of subsidy to fertilizers manufacturers and importers, the subsidy is proposed to be substituted with reduction in sales tax rates on various fertilizers. Instead of ad valorem rates, speciRic rates
have been proposed. Sales tax on DAP is reduced by Rs300/bag. However, the rate on urea fertilizer shall remain unchanged at 5.0 percent ad valorem. Sales tax on import of seven types of poultry machinery is proposed to be reduced to 7.0 percent. Exemption from sales tax is announced on combined harvesters. Presently, combined harvesters are subject to sales tax at 7.0 percent ad valorem under Eighth Schedule. It is proposed to provide exemption from whole of sales tax on combined har-
vesters upto Rive years old by inserting an entry in the Sixth Schedule. Exemption from sales tax is announced on agriculture diesel engine. Sales tax on agricultural diesel engines (from 3 to 36 HP) is proposed to be exempted enforced through Finance Bill, 2017, effective from 01.07.2017. Exemption from sales tax is announced on imported seeds for sowing. Presently, imported oil seeds are subject to sales tax 5.0 percent under Eighth Schedule. Exemption from pay-
ment of sales tax is being provided on import of sunRlower and canola hybrid seeds meant for sowing. Exemption from sales tax is being provided on import of multimedia projectors by educational institutions. In order to enable industrial consumers to avail input tax adjustment on lubricating oils purchased from the traders, the entry relating to lubricating oil is being omitted from Chapter XIII of the Sales Tax Special Procedures Rules, 2007, thus withdrawing the levy of 2.0 percent sales tax on lubricating oils. Re-
duction in sales tax is announced on import and supply of hybrid electric vehicles. Reduction in sales tax at the rate of 50 percent is available on import of hybrid electric vehicles up to 1800cc and at the rate of 25 percent on hybrid electric vehicles exceeding 1800cc. It is proposed to maintain reduction in sales tax at the rate of 50 percent on hybrid electric vehicles having engine capacity up to 1800cc and restrict reduction at the rate of 25 percent on engine capacity from 1801cc to 2500cc only.
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FBR suggests 10%, 12.5% and 15% tax slabs ISLAMABAD: The Federal Board of Revenue (FBR) has suggested three different slabs for imposition of tax earned through profit on dent at 10 percent, 12.5 percent and 15 percent. Through Finance Bill 2017-18, the FBR proposed that where profit on debt does not exceed Rs5,000,000 the proposed rate will be standing at 10 percent. Where profit on debt exceeds Rs5,000,000 but does not exceed Rs25,000,000, the proposed tax rate will be 12.5 percent. Where profit on debt exceeds Rs25,000,000 the proposed rate will be standing at 15 percent in financial year 2017-18.
rto-I recovers rs 34,548m during first 20 days of May
Friday June 2, 2017
National
Faisalabad customs earns rs7.736 million through auction
KARACHI
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he Regional Tax Office-I (RTO-I) has recovered an amount of Rs 34,568 million during first twenty days of May. Sources told Customs Today that RTO-I recovered Rs 31,345 million under the head of income tax, while Rs 2783 million were recovered as sales tax. Sources said that Rs 440 million were collected under the head of federal excise duty (FED), while Rs 29,635 million were recovered during first fifteen days of May from which Rs 27,324 million were collected under the head of income tax, while Rs 1,882 million were collected under the head of sales tax and Rs 429 million were collected as federal excise duty (FED) during first 15 days of May.
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govt for increasing sales tax rate to enhance revenue KARACHI
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he federal government has proposed to increase incidence of sales tax on various imports and sectors which would help it overcome declining revenue. Steel sector is currently paying sales tax on the basis of consumption of electricity at the rate of Rs9.0 per unit of electricity. The existing rate of Rs 9.0 per unit of electricity is proposed to be enhanced to Rs10.5 and corresponding increase shall be made in ship breaking and other allied industry. And to promote the ease of doing business the issues pertaining to steel industry shall be resolved in consultation with the industry. Retail sales of five export oriented sectors are chargeable to sales tax at 5.0 percent. It is proposed to increase the said rate to 6.0 percent.
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FAISALABAD
NAeeM SheIkh
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he Customs Collectorate auction committee has conducted auction of seized smuggled items after the permission of the Federal Board of Revenue (FBR) and generated Rs7.736 million through auction of vehicles and other smuggled goods. Sources told Customs Today that Anti Smuggling Organization (ASO) of the customs Faisalabad has confiscated smuggled items which were coming from China and Iran by different roads and shifted the same to State Warehouse. The ASO registered cases of impounded goods and referred them to the Adjudication Department for proceeding. After conclusion of proceeding, Customs Adjudication announced judgment in favor of the customs department. The Collectorate held special auction of vehicles and goods. Most of the people from Faisalabad and Lahore participated in the auction. There were four vehicles including Toyota Laxus bearing registration no: IDO-786 worth Rs21,35000, Land Cruiser Prado worth Rs, 19,00,000, Honda Civic car worth Rs6,51000, Toyota Hilux double cabin worth Rs22,50,000 and four other miscellaneous items worth Rs800,000 were auctioned
off. Deputy Collector Falik Shair expressed complete satisfaction over the transparency of the auction process. Meanwhile, AntiSmuggling Organization (ASO) Faisalabad has impounded a smuggled Toyota Hilux Surf valued Rs500000 involving customs duty and taxes of Rs1.3million. Sources told Customs Today that following a tip-off received by Collector Muhammad Sadiq, the ASO team conducted a raid on
After conclusion of proceeding, customs Adjudication announced judgment in favor of the customs department. the collectorate held special auction of vehicles and goods. Most of the people from Faisalabad and Lahore participated in the auction
NAB files reference against six pesco officials
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PESHAWAR
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he National Accountability Bureau (NAB), Khyber Pakhtunkhwa, has filed a reference against six Pesco officials for their alleged involvement in illegally restoring services of a NAB convict, who was former store manager in Wapda. An official of the NAB said that the Bureau had filed a reference of over Rs4.8 mil-
lion against six officials of Pesco in an accountability court. The reference was filed against director general human resource Syed Chand Badshah Bukhari, former manager human resource Muhammad Iqbal, former deputy manager Said Khan, former assistant manager Abdul Lateef and former superintendent Azizur Rehman. The NAB official said that they were allegedly charged for illegally restoring the service of the NAB convicted employee Ijaz Khan, former store man-
ager in Wapda. The NAB claimed in the reference that Ijaz Khan was sent home in 2004 on compulsory retirement. It said that the NAB then in 2006 completed investigation against him and filed a corruption case against him, in which he was convicted. It was stated that the accused Ijaz again in connivance with the accused officials restored himself through an illegal way, resulting in loss of millions of rupees to the national exchequer.
Millat Chowk, Sheikhupura Road, Faisalabad, and intercepted a foreign origin F/O Hilux Surf with registration No: BF-4360 Modelled 1997 brought into the country without payment of customs duty and taxes. A person on the driving seat tried to run away but could not succeed. Owner of the vehicle has neither contacted the ASO offices Faisalabad nor has produced any proof of the lawful import.
FIA apprehends two human traffickers ederal Investigation Agency (FIA) has arrested two notorious human traffickers Salamat Ullah and Saeed Anjum from Daska.According to Khalid Anees (Divisional Deputy Director FIA), the accused were sending innocent people abroad illegally after gulling big amounts from them. FIA has sent the accused behind the bars after registering separate cases against them.
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IRSA releases 282,300 cusecs water from various rim stations ISLAMABAD: The Indus River System Authority (IRSA) Tuesday released 282,300 cusecs water from various rim stations with inflow of 389,900 cusecs. According to the data released by IRSA, water level in the Indus River at Tarbela Dam was 1456.78 feet, which was 76.78 feet higher than its dead level 1380 feet. Water inflow in the dam was recorded as 192,300 cusecs while outflow was recorded as 120,000 cusecs. The water level in the Jhelum River at Mangla Dam was 1158.70 feet, which was 118.70 feet higher than its dead level of 1040 feet whereas the inflow and outflow of water was recorded as 60,300 cusecs and 25,000 cusecs respectively.
Friday June 2, 2017
Business
Dr Ayesha to present punjab budget today LAHORE
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unjab Finance Minister Dr Ayesha Ghaus Pasha will present the provincial budget for Rinancial year 2017-18 on Friday today. at 2:30 pm in the provincial assembly. A spokeswoman for the Rinance minister said that the upcoming budget would focus on education, health, agriculture, infrastructure development, clean drinking water and energy projects keeping in view the ongoing projects. “Special recommendations will be given to facilitate the business community and increase exports with no new taxes.
rs321 million allocated for pNrA ISLAMABAD
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However, the tax net will be widened to ease the burden,” she said. “The private-public partnership will be enhanced to increase employment opportunities and interest-free loans will be provided to promote small and medium enterprises. Skill development and voca-
kpogcL, Jereh group join hands for setting up oil refinery in kp
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he government has allocated Rs 321.530 million for three ongoing and a new scheme of Pakistan Nuclear Regulatory Authority (PNRA) under Public Sector Development Programme (PSDP) for fiscal year 2017-18. According to the budgetary documents, Rs286.530 million has been allocated for ongoing schemes and Rs35 million for new schemes. Among the ongoing sachems, a total of Rs50 million has been allocated for capacity building.
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tional trainings programmes will be made at a par to the standards of the job market. Tax recoveries will be reformed to facilitate the business community,” she said. “Like the previous year, a citizens’ budget will be presented (in the form of graphs) for easy understanding of the
budget documents,” she said. Meanwhile, Chairperson Technical Education and Vocational Training Authority (TEVTA) Irfan Qaiser Sheikh has said that TEVTA will increase the interest free loans for its pass out students from Rs 500 million to Rs 1000 million. While addressing a meeting of TEVTA ofRicials on Monday at TEVTA secretariat, he said that a huge amount of Rs 2,000 million was being spent on infrastructure and now the same amount is being spent on human development. The TEVTA has decided to double the amount of interest free loans to TEVTA graduates as per the vision of Chief Minister Punjab Shehbaz Sharif, Irfan said. Chairperson further said that making youth of Punjab skilled and providing them.
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PESHAWAR
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ereh Group, a Chinese company has engaged in Memorandum of Understanding (MoU) with Khyber Pakhtunkhwa Oil and Gas Company (KPOGCL), a KP Provincial Holding Company for establishment of 15,000 Bpd reRinery in KP to cater for needs of exploration companies operating in the region The CEO Jereh Group HE LI visited Peshawar and discussed way forward with Secretary of Energy and Power KP
Engr Muhammad Naeem Khan, Secretary of Planning and Development Shahab Ali Shah, CEO KPOGCL Raziuddin and DGM KPOGCL Nouman Akbar along with technical team. He expressed his views that Jereh Group is very much interested to take this project forward after due consideration of all the possibilities. Prefeasibility study has been conducted by KPOGCL and was presented to visiting delegation team. Speaking on the occasion KPOGCL CEO Raziuddin stated that this project will create 10,000 direct and indirect jobs for the province and will be beneRicial
for E&P companies operation in KP. We envision creating a pipeline infrastructure directly from wellhead to reRineries. As per MoU, Jereh Group will conduct detailed feasibility study. Furthermore, after successful execution of project, US$ 1 million will be spent for community development on account of Corporate Social Responsibility, he said. It merits a mention here that the MoU signing ceremony was held in Beijing, China on April 19, 2017 between the two companies for joint venture partnership for establishment of the much needed reRinery in the province.
Aptma terms 12%-of-gDp export target ‘impossible’ LAHORE
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he All Pakistan Textile Mills Association (Aptma) has said that it is impossible to achieve the export target of 12% of Gross Domestic Product, given the lacklustre attitude of the government. The target cannot be achieved by allocating a mere Rs4 billion in the new budget against the Rs180 billion Prime Minister’s Textile Package announced on January 10, 2017. “Allocation of Rs4 billion under the textile industry package is nothing short of a joke,” he added. He deplored that the federal budget 2017-18 has offered nothing for industrial growth and increase in exports. Instead of announcing initiatives for immediate restoration of the textile industry’s viability, the government has further burdened it with increase in turnover tax, customs duty and sales tax on import of cotton and levy of further taxes. The industry is already plagued with a liquidity crunch amidst uncertainty relating to clearance of billions of rupees of sales tax refunds. The spokesman said that both the current account and trade deficits could be minimised by strengthening the textile industry, which has the potential of earning precious foreign exchange for the country.
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Secp approves measures for seamless flux of capital ISLAMABAD
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he MSCI reclassiRied Pakistan as an Emerging Market (EM) on June 14, 2016, which was to take effect from June, 2017. The rebalancing of portfolios by funds tracking MSCI EM Index and MSCI Frontier Index is expected to result in a signiRicant Rlux of capital in the stock market on the eve of
June 1, said in statement issued by SECP here on Monday. Considering the experiences of other regional markets, which underwent such reclassiRication in recent years, the Securities and Exchange Commission of Pakistan (SECP) as part of its mandate to ensure orderly and efRiciently functioning capital markets has approved certain measures as proposed by the Pakistan Stock Exchange Limited (PSX), National
Clearing Company of Pakistan Limited, international broker dealers and local market participants for a seamless transition. It has been ensured that minimal changes are made to the system while the trade cycle continues smoothly. Among other matters, a post-close trading session has been introduced wherein trading will only be allowed at the closing price determined during the closing session of the market. This will allow
investors to execute trades through market on close orders. Additionally, it is expected that certain investors might prefer placing their orders at or near the closing time during the normal trading session so that their orders are Rilled as near to the ofRicial closing price as possible to reduce their tracking error. Thus in order to cater for the expected high volume during the closing session, the closing price for all shares shall be determined over
the last two hours of the regular market session on the basis of volume weighted average price (VWAP) as against the current practice of last 30 minutes. This change will only be for a limited period, i.e. from May 26 to June 2, 2017. The respective indices of PSX shall accordingly be calculated based on the closing prices under the revised arrangement for the said duration and revert to the current practice thereafter.
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mbassador of Bosnia and Herzegovina Nedim Makarevic has said that tax free exports from his country to the entire European markets can open new horizons of export for Pakistani investors. There is no tax on exports from Bosnia to EU. So whatever we export is tax free so Pakistani industrialists can produce and then export to EU tax free. “It is high time for Pakistani investors to invest in reap the beneRits of investment in Bosnia because the EU may change this policy after some years. So Bosnia is only friendly country to Pakistan in the entire EU” he said while speaking to Customs Today in an exclusive interview here. In this regard, Prime Minister Nawaz Sharif paid a visit to Sarajevo along with a huge delegation of Pakistani businessmen and thus opened new doors for Pakistanis to entire European markets. Nedim Makarevic said that he had held detailed discussions with lead Pakistani businessmen Malik Riaz and Sadruddin Hashwani to convince them to invest in his country and both of the business tycoons had assured him to look into his proposals. Malik Riaz’s preference is Pakistan for in-
vestment whereas Hashwani does not enjoy good health to undertake any investment adventure in Bosnia. To a question about main problem in promotion of bilateral trade and economic cooperation between Pakistan and Bosnia Herzegovina, Ambassador said that main problem was that Pakistanis didn’t know much about Bosnia. Secondly, when we speak about business relations, Pakistanis prefer to visit as
tourists not as businessmen or investors in Bosnia. To another question about available attractions for Pakistani investors in his country, he said that tax free access EU markets and no taxation on exports to EU from Bosnia was the main attraction for Pakistani investors. It means if someone establishes a company in Bosnia, may get visa for entire EU as well as can export products to Germany, entire Europe. Thus Pakistanis can enter EU through Bosnia” he said adding that Prime Minister Nawaz Sharif was quite aware of the signiRicance of Bosnian geographical location; however, but he himself can’t step forward and do business personally. “Problem with Pakistanis is that they are shy investors; wealthy Pakistanis like to invest in only two cities Dubai and London and they are just purchases Rlats and houses; but this sort of as investment does not proem w l b o r in p a t duce anything” he mainm u t o ha uch ab said t tained. Another problem m r o w d o a ss out ’t kn b n a with Pakistanis is that d i k Amba d s ea istani we sp they are not serious k n a o e t p h r t tha refe ly, w p d businessmen and they s n i o n c ta a. Se or pakis just visit Bosnia for one n , s e n Bosni m o s i s lat or two weeks then come usine ess re t as b o busin n s t back without making s i a r i u n o s st Bo any investment. visit a tors in
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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
potentials of agriculture sector
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ccording to newspaper reports, Zarai Taraqiati Bank and National Bank of Pakistan will launch a loan programme for farmers with holdings of up to 12.5 acres at a reduced rate of 9.9 percent from July 1, 2017. In the federal budget, the government has enhanced the target of agriculture credit by 43 percent up to Rs 1 trillion for the fiscal year 2017-18 from Rs 700 billion last year. Despite being an agriculture economy, no government could ever tried to streamline this vital sector. Industrialists have always been critical of the government for giving to much concessions to agriculture sector, but agriculturists complain they are burdened with unjustified tax regimes and they are given loans on high markup rates. However, enhancement of credit by 43 percent announced in the budget 2017-18 is expected to give a further boost to the sector. The agriculture sector showed bleak performance during fiscal year 2015-16, especially in cotton production. However, it posted a growth of 3.46 percent during the ongoing fiscal year and is the highest in the last five years. This growth has helped the government drag the overall economic growth up to 5.3 percent. Finance Minister Ishaq Dar has announced fix general sales tax on DAP which will considerably reduce the fertilizer price and a bag of urea will be available at Rs1400. According to the minister, the country is facing 10 percent reduction and losses in agriculture sector due to the use of old machinery. There is a need to use modern implements to get prolific yield but decades old combined harvesters are still being imported and used in the agriculture sector. Earlier, the prime minister had introduced a package of incentives which brought a massive growth in the sector though many of the targets were missed. According to experts, introduction of corporate farming is lesser evil given the current situation. For better yield, the government will have to ensure adequate water supply, credit facility at zero markup and availability of fertilizers to the farmers. The oďŹƒcial rigmarole prevents the farmers from benefiting the government schemes as it happened in Sindh where a credit allocation of Rs 36 billion remained unutilized during the outgoing fiscal year. As the government has slashed general sales tax on di-ammonium phosphate from Rs400 to Rs100 and has removed customs duty and GST on combined harvesters, it is hoped that the performance of the agriculture will improve this fiscal year.
railway needs attention R
LAHORE
Dr AFtAB AFZAL
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ailway is one of the barometers of the economy. However, the Pakistan railway has been passing through a deterioration process for the last many decades due to negligence and apathy of the government authorities. Dozens of train routes have been suspended or permanently closed and many railway tracks are either stolen or scraped thanks to rampant corruption in the department. Precious land and property worth billions of rupees has been illegally occupied across the country by dif-
ferent mafia groups and millions of rupees are spend annually on Mayo Gardens to renovate the residential area of the senior railway officials. The department was the gift of British raj for the people of subcontinent, sprawling over width and length of the undivided land. Instead of improving the railway tracks or introducing bullet trains after independence, railways started decaying, incurring billions of rupees annual losses.The successive governments have failed to plug the loopholes which are syphoning off the departmental resources or to identify the causes of regression. The situation has reached a point that
the whole railway department needs attention and sooner the measures are taken the better. As economy of the country is growing, railway could be used as the cheap source of transportation in import and export of goods. The government has allocated Rs 42.9 billion under the Public Sector Development Programme to finance new and ongoing projects for the financial year 2017-18.After part of the railways is covered in the China Pakistan Economic Corridor the government has now planned to upgrade the main line rail track between Karachi and Peshawar. According to Railways Minister Khawaja Saad
Rafique, the government is in process of negotiation with Asian Development Bank to get a concessionary loan of $2.5 billion to rehabilitate this vital department. Railway was the major service provider of the country at a time, but now has lost its strength. A democratic government is in the office and it is hoped the loan money will be judiciously utilized in the uplift schemes. The government can invite international tenders to launch bullet train between Peshawar and Karachi on built, operate and transfer basis. This will not only give the best mean of transportation to the citizens, but will also shed traffic burden on highways and motorways.
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SingTel partners on Singapore SME digital programs SINGAPORE: Singtel is partnering with local education institutions’s Ngee Ann Polytechnic and Temasek Polytechnic to help Singapore’s small to medium business enterprises “with heritage” adopt digital technology. The collaborations are part of Singtel’s 99%SME initiative to help small to medium businesses use digital tools to get online, reach out to a wider customer base, and develop e-commerce capabilities. Andrew Lim, managing director, business group, group enterprise at Singtel, said, “Many SMEs with a long and rich heritage do not have the resources to market themselves effectively online or connect with younger, digitally savvy customers”. “Our partnerships with the two polytechnics allow us to help these SMEs evolve and digitalise their businesses, to preserve their heritage.”
FccI lauds budget by terming it realistic in present economic scenario FAISALABAD
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resident Faisalabad Chamber of Commerce and Industry (FCCI) Engineer Muhammad Saeed Sheikh has welcomed the new Federal Budget 2017-18 by terming it most realistic in the prevailing economic scenario. He along with the other leading businessmen of the city participated in a special function in FCCI auditorium in which the budget speech of Federal Finance Minister Mr. Ishaq Dar was screened live from the National Assembly. He said that the present budget is actually the continuity of the previous budgets of PML (N) Government and it is fact that all economic indicators have improved during these four
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years. He appreciated the fiscal policies of Ishaq Dar who is trying its optimum best to materialize the economic vision of Prime Minister Nawaz Sharif and put Pakistan on road to progress and prosperity. He mentioned that 81 percent increase in revenue during last four years is the outcome of best policies and efficient management of present Government. He was also appreciative of the provision of capital at the lowest mark up of 5.75% and said that it is also indicative of the prudent policies of the government. Similarly, for industrial sector the long term finance is now available at 6 percent which inspired industrialists to import new machinery in order to further expedite the process of industrialization.
Friday June 2, 2017
Chambers
Static display center to be established at pak embassy in tashkent: Dr. Shami P
KARACHI
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akistan’s Ambassador to Uzbekistan Dr. Irfan Yusuf Shami has stressed the need to further tap and explore the Uzbek market by identifying the potential areas, besides effectively marketing Pakistani products and services which would surely result in improving the existing trade volume between the two countries. Talking to KCCI ofRice bearers and managing committee members during his visit to Karachi Chamber of Commerce and Industry, the Ambassador added that upon assuming charge of Pakistan’s Embassy in Tashkent, it will be one of his Rirst and foremost priority to establish a static display center where chamber-wise details along with samples of Pakistani products and services will be exhibited. President KCCI Shamim Ahmed Firpo, Senior Vice President KCCI Asif Nisar and KCCI Managing Committee members were also present on the occasion. Expressing deep concern over descending exports of Pakistan, Dr.
Shami assured to try his level best to improve Pakistan’s trade ties with Uzbekistan which is a highly potential market for many Pakistani products including pharma, surgical, sports, agricultural products, mangoes, citrus fruits, potatoes and other vegetables etc. He further assured to maintain excellent liaison with the Karachi Chamber on 24/7 basis so that trade
linkages could be improved between KCCI and the Uzbek business community in order to effectively respond to and fully facilitate numerous trade inquiries. “I am your Ambassador and I am your Commercial Counselor in Uzbekistan. Any input from Karachi Chamber to improve trade ties will always be welcomed and surely taken into consideration, he added.
LpgAp appeals govt to take notice of plight of Lpg Marketing & Storage cos LAHORE
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PG Association of Pakistan (LPGAP) urgently draws attention of the Ministry of Petroleum and Natural Resources to take immediate notice of the plight of LPG Marketing & Storage companies that may close before Ramadan because of over imports of cheap LPG and high price of local LPG producers. At an urgent meeting, Chairman of the LPG Association of Pakistan Farooq Iftikhar said that Ministry of Petroleum and Natural Resources must act now otherwise investment of billions and employment of around 500000 would be effected adversely.
As over imports of low quality LPG continue to Rlow in Pakistan, and majority of dealers busy in hoarding imported cheap LPG for Ramazan & Eid, LPG Marketing Companies are facing tremendous difRiculties in selling local good quality LPG because of high price being maintained by LPG producers for reasons only they know, despite being in violation of LPG Policy 2017. “Presently importers selling LPG to dealers, decanters besides LPG companies having no local allocation is between Rs.55000/- to Rs57000 pet MT inclusive of all taxes, whereas locally produced LPG costs LPG Marketing Companies having allocation around Rs60,000 to Rs62,000 per MT, giving importers a very clear edge. Further
LPG Marketing Companies have a sizeable establishment viz-a-viz importer, selling in bulk having negligible overheads”, Farooq Iftikhar added. He said that FBR’s selective policy of only allowing speciRic importers withholding tax exemption gives additional advantage to them over local product. To add to these woes, LPG terminals giving unrealistic terms to preferred importers, thus creating hurdles for others. Chairman LPGAP said that local producer bench marking prices of local LPG product on higher side using contract clauses to their singular advantage, as marketing companies forced to lift LPG monthly quota having paid hefty signature bonus in advance for 5 years or risking their forfeiture.
He further advised the Karachi Chamber to line up a business delegation to Uzbekistan in the Rirst week of October 2017 which will be fully assisted by the Embassy and all out efforts will be made to facilitate maximum number of B2B meetings with Uzbek counterparts with a view to pave way for enhanced trade, investment and joint ventures between the two countries.
Dubai chamber hosts workshop on companies Law he Dubai Chamber of Commerce and Industry hosted a workshop to discuss key features and requirements under the new UAE Commercial Companies Law. Presentations at the workshop highlighted the changes brought by the law including recognition to concepts for structures that might not have been previously possible. The event, which was organised in cooperation with Afridi & Angell Legal Consultants, was attended by business owners, investors, lawyers, general managers, and members of the Dubai Chamber. Meanwhile, A high-level delegation from the Dubai Chamber of Commerce and Industry recently met with Uruguay’s Vice President H.E. Raul Sendic in Montevideo to formally invite him to attend the 2nd Global Business Forum on Latin America. –CB Report
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Dy Collector Shahid appointed State Life GM ISLAMABAD: Shahid Ali, a Pakistan Customs Service officer of BS-18, has relinquished the charge of the post of Deputy Collector to join his new assignment as General Manager, State Life Insurance Corporation of Pakistan. The officer, in pursuance of Ministry of Commerce Notification No. F.3(26)/2016/-Ins. dated 04.05.2017, relinquished the above said charge at Model Customs Collectorate, Hyderabad with effect from May 8, 2017, to join his new assignment as General Manager, State Life Insurance Corporation of Pakistan.
Friday June 2, 2017
Islamabad Suspension period of customs Inspector Akram extended
Syed ghulam Abbas made chief commissioner-Ir till June 30
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he suspension period of Muhammad Akram, a Pakistan Customs Service officer of BS16, has further been extended. The competent authority, in continuation of Board’s Notification No.0371-CIII/2017 dated 08.02.2017, extended suspension period of Muhammad Akram, presently posted as Inspector at Model Customs Collectorate, Faisalabad, for a further period of three months with effect from April 25, 2017. Meanwhile, The suspension period of Khalid Sadiq Marwat, a Intelligence Officer, Directorate of Intelligence & Investigation-FBR, Regional Office, Peshawar, has further been extended. The competent authority, in continuation of Board’s Notification No. 0558-C-III/2017 dated 23.02.2017, has extended suspension period of the officer for further period of three months with effect from May 18, 2017.
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Dy Superintendent umer hayat Sial to retire on Sept 18 mer Hayat Sial, an Inland Revenue Service officer of BS-16, is going to retire from the government service on attaining the age of superannuation. The officer, presently posted as Deputy Superintendent at Regional Tax Office-II, Lahore, will stand retired from the government service on September 18, 2017. Meanwhile, The competent authority in Federal Board of Revenue has allowed voluntary retirement from government service to Syed Nawab Hussain Zaidi, an Inland Revenue Service officer of BS-17. On completion of 35 years qualifying service for pension, the officer, last posted as Assistant Commissioner-IR at Large Taxpayers Unit-II, Karachi. –CB Report
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yed Ghulam Abbas Kazmi, a BS20 ofRicer of Inland Revenue Service , has been transferred and posted as Chief CommissionerIR (OPS), Regional Tax OfRice, Islamabad with immediate effect. The ofRicer, presently posted as Commissioner-IR (WHT), Regional Tax OfRice, Islamabad, has been posted as Chief Commissioner-IR (OPS), RTO, Islamabad till June 30, 2017. He has also been assigned the ‘additional charge’ of the post of CommissionerIR (WHT), Regional Tax OfRice, Islamabad till the same date. The ofRicer has been directed to relinquish/assume charge, using online HRMS facility made available at all FBR major Rield ofRices or by using IJP login.
Multan customs Intelligence seizes NDp tyres C
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ustoms Intelligence and Investigation Multan Range OfRice has seized huge quantity of foreign origin tyres of Rs8 million during raid. According to the details, Directorate of Customs Intelligence and Investigation Multan received credible information from their informer regarding smuggled tyres lying in the warehouse. Deputy Director Customs Intelligence and Investigation Multan Range Abdul Mueed Kanjoo formed special team for crackdown against warehouse to seize tyres. Customs Intelligence team comprises Superintendent Fareed ud din Masood, Inspector Umer, Inspector Nasir and other sepoys raided warehouse located in Mumtazabad area of mohallah Nasirabad and recovered smuggled tyres placed in the godown. The Customs intelligence teams recovered 172 commercial tryes of High TrafRic Vehicles (HTV) and
300 Light TrafRic Vehicles (LTV) during their action. Anti-smuggling operation of Customs Intelligence and Investigation was carried out after obtaining search warrants from magistrate and lo-
cal police have also assisted during raid to prevent any resistance from owner. It may be mentioned here that the Customs authorities have several markets under surveillance where the smuggled
goods are stored and sold. Customs teams have done this successful raid after getting concrete information about the warehouse from their informer and recovered millions of tyres.
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Customs court grants bail to accused booked in tax evasion case KARACHI: Customs (Taxation & Anti-Smuggling) Court Judge Syed Faiz Rasool Rashdi granted an interim bail to accused Ziaur Rahman S/o Nisar Muhammad Qadri against the surety of Rs200000. Ziaur Rahman was booked in a case of mis-declaration and evasion of duty and taxes of Rs1.1million. During the hearing, accused appeared before the court along with his counsel who argued that his client was falsely implicated in this case therefore court may grant him a bail till the final verdict of the case. After arguments, court granted him the bail against the surety of Rs200000 and directed the accused to appear before the court on the next date of hearing.
customs court issues warrant for accused booked in mis-declaration case KARACHI
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ustoms Court Judge Syed Faiz Rasool Rashdi issued a non-bailable warrant for accused Muhammad Muamar Junaid booked in a mis-declaration and evaded the duty and taxes of Rs2.7million. During the hearing, accused Khurram Inayat S/o Inayat Ali was present on the interim bail, however accused Muhammad Muamar Junaid was absent without any intimation notice therefore the court issued his non-bailable warrant. The court also issued a notice to his surety and directed the investigation officer to submit a compliance report along with a final charge-sheet. During the investigation, it was revealed that accused are involved in mis-declaration of im-
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port value and fiscal fraud through submission of fake commercial invoices. A case was registered in violation of Section 32 (1) & (2) 32 A read with Section 79 punishable under Clauses (14) (14A) of Section 156 (1) of the Customs Act-1969 read with Section 3, 4, 6, 7A, 33 and 34 of the Sales Act-1990 further read with Section 148 of the Income Tax Ordinance-2011. Meanwhile, Customs Court Judge Syed Faiz Rasool Rashdi remanded an accused named Muhammad Yousuf son of Babu to Central Jail Karachi who was booked in a case of illegal removal of pay-order worth Rs02.1million. During the hearing, investigation officer produced above named accused before the court and informed it that the pay-order No: 3176009 dated 03/02/2014 of Rs02.1million was issued by Standard Chartered Bank, Gulshan-e-Iqbal Karachi.
Karachi
Shc directs ccIr to hire counsel in M/s Dewan textile Mills case T
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he Sindh High Court (SHC) has directed Chief Commissioner Inland Revenue LTU-I/LTU-II to engage counsel for representing the tax department before court on an income tax petition Riled by the Commissioner Inland Revenue Large Taxpayers Unit (Legal). According to reports, the commissioner challenged an impugned judgment by the appellate tribunal over recovery of disputed amount from M/s Dewan Textile Mills Limited. A two-member bench, headed by Justice Aqeel Ahmed Abbasi was hearing the petition. During the petition, the court has been informed that Muhammad Altaf Mun advocate, who was earlier representing the applicant, has been de-notiRied from the panel of advocates representing the FBR, therefore, court directed the ofRice to issue direct notice to the respondent/ chief commissioner Inland Revenue LTU-I/LTU-II to engage counsel. The court adjourned the matter after summer vacation. Earlier, counsel for the applicant stated that above mentioned tax-
payer was selected for audit under section 177 of the Income Tax Ordinance, 2001 for tax year 2003, however, being aggrieved, taxpayer Riled an appeal before Commissioner Inland Revenue Appeals which deleted the alleged disallowance of tax credit under section 107 AA against taxpayer under section 113 of the Income Tax Ordinance 2001. Meanwhile, Sindh High Court has granted bail to a disabled person in
Friday June 2, 2017
a mis-declaration case. Justice Aftab Ahmed Gorar granted bail to the man whose Computerized National Identity Card (CNIC) was used for importing consignments and then cleared through mis-declaration. The applicant/accused Sajid Hussain was behind the bar since many months and sought bail through his counsel Ms Dil Khurram Shaheen advocate.
court accepts interim challan against suspects KARACHI
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nvestigation officer Muhammad Azam Nafees has submitted an interim challan before Customs Court Judge Syed Faiz Rasool Rashdi against suspect Syed Tanveer Ahmed son of Syed Iqbal Ahmed, owner/ partner of M/s Winsome Package, who was alleged involved in a case of mega sales tax fraud of Rs184 million approximately. Custom Court accepted interim challan and issued non-bail able warrants of the above mentioned accused person. Names of Muhammad Azam Nafees, IRAD Directorate of Intelligence & Investigation Inland Revenue, Humayun IRO Directorate of Intelligence & Investigation Inland Revenue and Saeed Khan, Audit-IR Directorate of Intelligence & Investigation Inland Revenue mentioned as witnesses in the charge sheet. According to the prosecution, during the investigation, it was revealed that above mentioned accused with connivance of the other accused committed a commission of tax fraud as envisaged under section 2 (37) of the Sales Tax act. Therefore, a case was registered in violation of section 3, 6, 7, 8, 22, 23, 26 and 73 of the sales tax.
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customs Appellate tribunal rejects Vr No 840/2016
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special bench of the Customs Appellate Tribunal has set aside impugned Valuation Ruling No 840/2016 dated 21/4/2016 and directed the customs department to issue a fresh valuation ruling, considering its observations, especially in accordance with the principles laid down in section 25 and 25A of the Customs Act 1969 within one month. The bench ordered this on a appeal filed by M/s Haier Pakistan (Private) Limited. A two-member bench, compris-
ing Muhammad Nadeem Qureshi, Member Judicial-I and Muhammad Nazim Saleem, Member TechnicalII Karachi heard the appeal. Earlier, counsel for the petitioner stated that it is engaged in imports of home appliances and registered as importer, exporter, wholesaler etc. He argued that petitioner fulRilling all the liabilities properly. He submitted that director, Directorate General of Customs Valuation issued Valuation Ruling No 840/2016 dated 21/04/2016, wherein, the value of home appliances have been determined arbitrary and without following the sequential methods as laid down in
section 25 of the customs act, 1969 which is also conflict with the principle laid down by the apex court of Pakistan. After the both sides’ arguments, court set aside impugned valuation ruling and observed in its order that “subject impugned valuation ruling no 840/2016 dated 21/04/2016 lacks the warrant of law and its issuance has no adherence to statutory requirements as laid down in section 25 of the customs act, 1969, therefore, the said valuation ruling is decaled as void, illegal and without lawful authority is hereby set aside accordingly. The impugned order-in-review
passed within hierarchy of the customs, the also infested with patent illegalities, therefore, the same is also set aside with directions that, the customs department should be take appropriate measures and issue a fresh valuation ruling, considering the observations, especially in accordance with the principle laid down in section 25 and 25A of the Customs Act 1969”. Court also directed the customs department that after giving the opportunity, being heard to all stakeholders, the exercise will be completed within one month from the receipt of this order, compliance report shall be submitted accordingly.
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UPS invests in new Package Center In Mysłowice Friday June 2, 2017
World
WARSAW: UPS announced the opening of a new package facility in Mysłowice, Poland. The larger center and increased sorting capacity will allow UPS to help businesses of all sizes in southern Poland reach their customers in the rest of the country, Europe and beyond. “Poland is an important market for UPS and in the first quarter of this year we grew our export volume by more than 20%,” said Pavel Adamovsky, country manager, UPS Poland. “This investment demonstrates our long-standing commitment to helping our customers in Poland grow and connect to markets all over the world.”
Vietnam earns $62b as export turnover in four months
Italian police says Amazon evaded €130m taxes MILAN
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ietnam’s export turnover reached US$62.09 billion in the Rirst four months of this year, a year-on-year increase of 16.8 per cent, the General Department of Vietnam Customs reported. The country’s import turnover was $63.99 billion. The country enjoyed a trade surplus of $186 million in April, which contributed to reducing the trade deRicit to $1.9 billion during the period, the customs authority said. Vietnam saw a hike in its trade deRicit of more than $9.9 billion with South Korea, making it the market with the highest trade deRicit in the country. Vietnam exported goods worth $4.4 billion to South Korea, up 31.5 per cent compared with the same period last year; however, it imported goods from this country
poland’s oil and gas company takes on russia’s gazprom oland’s state-run oil and gas company PGNiG has called on the European Commission to slap Russia’s Gazprom with a fine and force it to sell assets. “The European Commission should financially punish Gazprom and create competitive conditions on the gas market,” PGNiG said on May 18, presenting details of the feedback it will send to the Commission. PGNiG Chief Executive Piotr Wozniak told a news conference on May 18 that Gazprom had abused anti-monopoly laws by, for example, setting different gas prices for different clients, imposing higher prices for some clients and linking its gas supplies with control over gas infrastructure. “We have calculated every single cent we have overpaid for the gas,” Wozniak said, but declined to give a figure for this or the size of fine it was seeking for Gazprom. –CB Report
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worth $14.37 billion, up 52.3 per cent. The customs authority said the main products exported to South Korea were telephones, computers, electronic products and machines, as well as textile and garment products. Meanwhile, The Việt Nam Dairy Products Joint Stock Company (Vinamilk) has imported more than 2,000 Holstein Friesian cows from
the US. The cows, believed to be the world’s high-yield diary animals that can produce 14,000 litres of milk in 305 days, were carefully selected and underwent strict quarantine and health checks before arriving in Việt Nam. They were sent to Vinamilk’s Tây Ninh cow farm, bringing the total number of cows at the farm to nearly 5,000.
S Lanka’s central bank buys uS$257.9m dollar from forex markets
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ri Lanka’s Central Bank has bought $257.9 million from forex markets in April 2017, with no sales, after also being a net buyer in March, official data show. When a central bank buys dollars, the rupee is prevented from going up. When a central bank buys dollars, rupees are printed into interbank markets. Unless the rupees are mopped up by selling down the Central Bank’s
Treasury bill stock, the rupee will be loaned to bank customers and imports will eventually be generated. In April, demand for cash goes up as customers withdraw money for the New Year (expanding the monetary base), and most rupees created in April will be drawn out of banks in a so-called ‘private sector sterilization’ and banks will not be able to lend the money. –CB Report
ilan tax police have told Amazon they believes the world’s largest online retailer has evaded around 130 million euros ($142 million) of taxes in Italy, a source close to the matter said. The allegedly unpaid taxes refer to the period between 2011 and 2015, when Amazon (AMZN.O) made revenues of around 2.5 billion euros in Italy, the source said. The tax police’s findings have been handed to Milan prosecutors, the source added. Amazon issued a statement denying it had evaded any taxes, and said its profits in Italy, on which taxes are paid, had been low due to its considerable investments in the country. Meanwhile, To increase revenue from multinational internet companies, Italy has announced plans
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to give them a say in their future tax bills rather than risk further disputes. Rome has spent years arguing that companies such as Amazon, Apple and Google avoid taxes by maintaining they do not have a “stable presence” in Italy, even though they generate huge revenues there. And after making little progress on an international “webtax” at a meeting of Group of Seven finance ministers this month, Rome has presented legislation of its own. As reported by the Reuters news agency, an amendment to a government decree to rein in this year’s budget deficit stipulates that multinationals with total revenues of more than €50 billion per year and sales worth more than €50 million in Italy can fix their tax bill in advance. Companies that sign up to the scheme will not only be able to agree their tax bills in advance for future years but will also have outstanding tax claims from previous years halved.
Fuel retailer’s shares rise 4% uel forecourt retailer Applegreen has said its pipeline of petrol Rilling stations is strong as it outlined expansion plans in Ireland, the UK and the US. Shares in Dublin rose as much as 4% as Applegreen chairman Daniel Kitchen told the company’s AGM that the trading performance of the business for the Rirst four months of the year had been in line with the board’s expectations, adding there had been good growth in the food side of the business. The company has added 16 sites since the beginning of 2017 made up of Rilling stations, dealer sites and
service areas. Four petrol stations and Rive dealer sites have been added in Ireland, while there have been three petrol stations in the UK as well as a motorway service station in the North. Mr Kitchen said: “Applegreen had a positive start to the 2017 Rinancial year both in terms of trading and the development of the business. Our business in Ireland is delivering strong growth in non-fuel sales in particular while fuel margin experience has been in line with 2016. We continue to enjoy good growth in UK food sales as we expand our branded food offering.” –CB Report
hong kong’s unemployment remains at 3.2%
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ong Kong’s unemployment rate stood at 3.2% in February April 2017, same as that in January March 2017, according to the Hong Kong Census and Statistics Department. The underemployment rate also remained unchanged at
1.2% in the two periods. Comparing February – April 2017 with January – March 2017, movements in the unemployment rate and underemployment rate in different industry sectors varied, but were all small in magnitude. Total employment decreased by around 5,700 from 3,822,400 in January – March 2017 to 3,816,700 in February – April 2017. Over the same period, the la-
bor force also decreased by around 3,500 from 3,947,400 to 3,943,900. The number of unemployed persons (not seasonally adjusted) increased by around 2,200 from 125,000 in January – March 2017 to 127,200 in February – April 2017. The number of underemployed persons in February – April 2017 was 48,800, about the same as in January – March 2017 (49,000). “The labor market re-
mained in a state of full employment in February – April 2017,” says the Secretary for Labour and Welfare, Stephen Sui. The seasonally adjusted unemployment rate and the underemployment rate held steady at low levels of 3.2% and 1.2% respectively. Both total employment and the labour force continued to show sturdy growth over a year earlier, at 1.1% and 0.9% respectively.
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Taiwan shares end down in reduced turnover
World Customs
TAIPEI: Extending the losses of a session earlier, amid rising concerns that the political uncertainty facing U.S. President Donald Trump will make it hard for him to push for tax reform and infrastructure investment, dealers said. Turnover was also relatively low, limiting trading of large-cap stocks to within a narrow range that prevented the broader market from climbing out of its doldrums and shooting again for the 10,000-point barrier, they said. The weighted index on the Taiwan Stock Exchange (TWSE) closed down 21.83 points, or 0.22 percent, at 9,947.62, after moving between 9,947.14 and 9,979.73, on turnover of NT$69.65 billion (US$2.31 billion).
hk customs advises public to stop using unsafe car charger ong Kong Customs today (May 24) advised members of the public to stop using a type of car charger with potential hazards. Test results have indicated that this type of car charger could pose a fire risk. Customs officers recently conducted a test-buy operation on a type of car charger for testing. The chargers, which had no brand name or model number, were purchased from a retailer. Subsequent safety tests revealed that the chargers pose a fire risk as their plastic enclosures provide insufficient heat and fire resistance, and do not comply with the safety requirements stipulated under the International Electrotechnical Commission (IEC). The products, without a brand name and model number for consumers’ identification, also do not conform to the labelling requirement under the IEC. Customs officers today issued the retailer with a prohibition notice, which stops the continued sale of the car charger. –CB Report
uAe’s cigarette tax ‘could lead to surge in tobacco smuggling’
surge in shipments of both electronic and non-electronic products helped boost Singapore’s exports growth by double digits in the first three months of the year. According to International Enterprise Singapore, the Republic’s non-oil domestic exports (NODX) rose by 15.2 per cent in first quarter, extending the previous quarter’s 2.7 per cent growth. “The global economic and trade outlook has improved since early 2017, notwithstanding uncertainties surrounding near-term economic and policy developments,” the agency said in a statement on Thursday (May 25). IE Singapore also raised its 2017 NODX growth projection to between 4 per cent and 6 per cent, up from the earlier forecast of 0 to 2 per cent. –CB Report
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Finnish customs seizes 950 kg of tainted, carcinogenic spices innish Customs has seized nearly one tonne of spices which were incorrectly labelled or contained dangerous ingredients, according to Helsingin Sanomat. The agency is taking part in the joint Europol-Interpol operation Opson VI, an international endeavour which targets counterfeit and substandard food products, and the organised crime networks behind the trade. Finnish Customs has seized some 950.5 kg of imported turmeric, curry and chilli because the spices were in breach of food safety regulations, Finland’s biggest daily newspaper Helsingin Sanomat reports. Officials uncovered chilli and turmeric that were found to contain the food colouring agent Sudan, which is a known carcinogenic and banned for use in food. They were found at a small Asian grocery store in Helsinki, but the owners of the shop had not imported the banned spices themselves. The responsible importing firm was tracked down and the spices were removed from store shelves. In order to import to the EU spices must include a certificate confirming they do not contain Sudan I,II,III and IV, Petri Lounatmaa, Finnish Customs’ Head of Analysis and Intelligence told Yle. Another seized product was found to have erroneously been marked as organic, the agency said. –CB Report
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Singapore’s Q1 exports see 15.2pc spike
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rab Emirates’ authorities will need to be on guard against a possible surge in the smuggling of illegal, unbranded, low-grade cigarettes after new tobacco taxes are imposed, said a former Interpol director. A 100 percent excise duty will take effect in the UAE and tobacco products will double in price across Gulf Cooperation Countries. The tax on tobacco, energy drinks
and soft drinks is expected be levied in the fourth quarter of this year. The fallout could be a rise in illegally imported cheap “white cigarettes”, which are often laced with dangerous chemicals used to boost production. It is estimated that these illegal imports currently account for 30 percent of sales in the UAE and are often smuggled in from Iraq, Syria and Iran. Cheap whites, or illicit whites, are products made legally in a factory with the approval of an overseas licensing authority, but may fall short of product standards in the country where they are ultimately sold. A former assistant director of the illicit trade and anti-counterfeit sub-
crime directorate at Interpol, said UAE border forces need to be extra vigilant to stem the Rlow. “Criminals take advantage by offering illegal tobacco at a discounted price, leading to illicit trade and smuggling of cigarettes into the country,” said Michael Ellis, now a risk management consultant. An electronic track-and-trace system uniquely identifying each imported package helps to Right tax evasion and illicit trade. Products are embedded with security features allowing goods to be declared as genuine and legally available for sale. In February, Dubai Police said they had seized 7.6 million tobacco products last year.
companies get reminders from royal Malaysian customs KOTA KINABALU
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he Royal Malaysian Customs Department has identiRied 62,000 out of 441,000 companies who have failed to declare or under declared either the Goods and Services Tax (GST). Its DirectorGeneral Datuk T Subromaniam said the department had sent friendly reminders to 21,000 companies in the Rirst phase of its crackdown last
week and would send similar notices to another 41,000 in the second phase this week. He said the friendly reminder approach was introduced in line with the department’s new policy to focus on informed compliance through education rather than compliance through enforcement previously. “The companies involved can check the notice via their Taxpayer Access Point. I am asking the companies involved to act quickly to correct their declaration and take the opportu-
nity to pay the GST amount payable. “They are given three months from the date the notice is sent to do so, failing which stern action will be taken as the three-month period is reasonable enough,” he told reporters after presenting the Sabah Royal Malaysian Customs Department’s Outstanding Service Awards 2016 here yesterday. Subromaniam said the friendly reminders were given to the companies registered under the GST after going through the GST-03 state-
ments and other available Rigures which did not tally, or whether the errors were intentional, or for making under declaration. In Sabah, he said 3,378 companies either did not declare or paid less GST than what it should be, with most of them in the retail sector, including restaurants and entertainment outlet operators. “Some (companies) think (if) they do not issue receipts, when the Customs comes to audit, with no documents available, the Customs cannot do anything.
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Two held for running travel agency illegally Friday June 2, 2017
Lahore
LAHORE: Federal Investigation Agency (FIA) on Friday claimed to have arrested two persons for doing illegal business of travel agency. According to a FIA spokesman, a team of FIA conducted a raid at a travel agency situated at Koh Noor plaza, Faisalabad and arrested Tahir Nadeem and Tahir Abbas. The team recovered 110 Pakistani passports, 60 family registration certificates, 36 police clearing certificates, a printer machines, 10 visa copies, a laptop and other items from their possession. A case has been registered against the accused.
customs court disposes of bail plea of accused mobile smuggler LAHORE
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pecial federal court of customs taxation and antismuggling has disposed of a post-arrest bail plea of an accused arrested in mobile smuggling case. Accused Agha Farukh was arrested by the customs investigation authorities from Faisalabad. After investigation from accused Tayab Manzoor, he is in judicial remand now. Accused Agha Farukh is a facilitator of Tayab Manzoor in smuggling of mobile phones. Earlier, customs taxation and anti-smuggling court has approved a 14-day judicial remand of the accused. Accused Tayab Manzoo was booked by the customs preventive
FBr announces operation against tax defaulters since 2015 ederal Board of Revenue has announced an operation against the tax defaulters who haven’t filed their income tax returns since year 2015. According to sources of Customs Today, FBR authorities have issued notices to 5,730 tax defaulters to submit their records within seven days otherwise they’ll undergo severe assessment. On the other hand, industry leaders and businessmen stand against the oppression perpetrated to them by the Federal Board of Revenue. They have accused the FBR authorities of making several raids without issuing any notice. FBR authorities hit their offices at night and take over the laptops, computers and other office accessories. –CB Report
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from Faisalabad International Airport while he reached here from Bahrain. Accused Tayab was travelling via Rlight of Gulf airways. During a search of the luggage of the goods, customs preventives found mobile phones he was trying to smuggle into Faisalabad. Customs has registered a case against accused Tayqb and launched the investigation after conRiscating the cell phones. The value of the cell phones is more than Rs5million. A case was registered under Pakistan Customs Act-1969. Meanwhile, Special Federal Court of Customs Taxation and Anti-Smuggling has extended the judicial remand of a suspect, Mian Talat Mehmood, involved in a mega tax scam of Rs 4 billion in Lahore. The managing director of Pakistan’s leading electronic manufacturing company was arrested by the Inland Revenue Department Lahore.
pcA detects taxes evasion of rs 230,874 by M/s Saleem Silk
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he Customs Post Clarence Audit (PCA) has summoned M/s Saleem Silk Centre in a case
involving duty and tax evasion of Rs 230,874 on the import of tarpaulin. The PCA Lahore observed that the import clearances data against HS Code 6306.1210 effected from various Model Customs Collectorate during the calendar years 2012 and 2013 revealed that inadmissible concession of sales tax and value added sales tax
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under the SRO (1125)/2011 dated 31.12.2011, were wrongfully availed on the import of tarpaulin i.e. sun shedding which is speciRically excluded from that ambit of said SRO and hence was not entitled for such beneRit under the said SRO. It has been observed that importer had imported various consignments consisting of tarpaulin and got it cleared under PCT heading 6306.1210 with inadmissible concession under SRO 1125(I/201 1, dated 31.12.2011. Hence, it was said that the importers have short paid an amount Rs 230,874 sales tax, additional sales tax and income tax due to wrongful, concession under the SRO I 125(D/2011 dated 31.12.2011. The importer was asked to pay above mentioned short paid amount of duty/ taxes within 10 days of receipt of this letter positively. The importer was told in case they do not agree with the audit observation; they may provide the written clariRication along with supporting documents as well as import documents.
Fto adjourns case of New pak punjab customs tribunal adjourns 13 cases Metal Industries till next date ustoms Appellate Tribunal Akram versus Directorate of Intelli-
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ederal Tax Ombudsman (FTO) has postponed the hearing of a case filed by Waheed-ud-Din Dar, Proprietor of New Pak Punjab Metal Industries, against the Regional Tax Office (RTO) Gujranwala till the next hearing. FTO Advisor Mian Munawar Ghafoor heard the case. Counsel for the appellant argued that the RTO Gujranwala has not released the refunds to the appellant since two years. He said the RTO Gujranwala has been collecting excessive taxes
from the appellant for the last two years. The company approached the officer concerned many times for release of the refunds, but the department did not pay anything after the lapse of a reasonable time. Finally, the appellant decided to approach the Federal Tax Ombudsman (FTO) seeking an intervention in this case. The counsel appealed the FTO Advisor to direct the Commissioner RTO Gujranwala to clear the refund claims. –CB Report
heard different adjourned cases in different dates after the detailed hearings of arguments from complainants and respondents. Customs Appellate Tribunal’s Division Bench-II (single and double), comprising Judicial Member Omer Arshad Hakeem and Member Technical Imran Tariq, heard 13 cases and adjourned all of them until the next hearing. A single bench of the Customs Appellate Tribunal, comprising Imran Tariq, heard two cases including Post-Clearance Audit Lahore versus Radolf Pakistan and Muhammad
gence and Investigation Faisalabad. On Thursday, the tribunal division bench-II heard 11 cases of Hilton Enterprises versus Customs Faisalabad, Farhan Saleem versus Directorate of Intelligence and Investigation Faisalabad, Abdul Bari versus Customs Faisalabad, Customs Faisalabad versus Iftekhar Ahmed, Master Link versus Directorate of Intelligence and Investigation Lahore. Moreover, the tribunal heard Directorate of Intelligence and Investigation Lahore versus Fakhar Abbas, Muhammad Rehman versus Customs Multan. –CB Report
customs tribunal upholds oNo in currency smuggling case
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LAHORE
SAJID NAwAZ
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ustoms Appellate Tribunal upheld an order of the adjudication and dismissed the appeal Riled by Jahangir Ghulam Ali, a resident of Lahore, against additional Collector of Customs, (Preventive), AFU Lahore and Superintendent of
Customs (TrafRic). Imran Tariq, a member of technical bench-II, heard the case and passed the judgement with the order that under the baggage rules 2006 notiRied under the SRO 666(I) 2006 read with Section 3 (1) (3) of the Import and Export Control Act (1950), the remaining amount of 10,134 US dollars for three passengers has been rightly conRiscated. So
instant customs appeal, being devoid of merit, is dismissed with no order. As per brief history of the case, Superintendent of Airport TrafRic with the order of ofRicers searched a passenger Jahangir Ghulam Ali on a tip-off. As per information, Jahangir would attempt to smuggle foreign currency. During a detailed inspection, the customs ofRicial recovered 40,134
US dollars from his possession in the presence of two witnesses. Jahangir breached the law and recovered currency was seized under the Section 168(I) of Customs Act-1969. After a show cause notice, the adjudication authority heard the arguments and declared outright conRiscation of the seized money and also imposed Rs 50,000 Rine on him under the Customs Act-1969.
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Port board signs off on budget for the new fiscal year WASHINGTON: Nobody sang “Auld Lang Syne” or anything, but the Virginia Port Authority board held its last meeting of the 2017 fiscal year on Tuesday. And it was all about the money mostly. The board OK’d a fiscal year 2018 budget that projects $531 million in terminal operating revenue, up from the projected 2017 figure of nearly $482 million. The new fiscal year will start July 1. The board approved spending about $2.2 million in its aid to local ports program next year, including some money carried over from the current year. Finally, a deal was approved to buy roughly $16 million worth of hybrid shuttle trucks for use at Virginia International Gateway in Portsmouth.
ports of Indiana releases 2017 Logistics Directory he Ports of Indiana has just released the 2017 Indiana Logistics Directory, an annual publication that highlights Indiana’s robust transportation infrastructure and freight logistics services. The Directory reports that Indiana ranks among the top five states in 27 logistics-related categories and in the top 10 in 100. Published by the Ports of Indiana, it highlights Indiana’s extensive cargohandling resources as well as national logistics rankings, multimodal maps and critical freight statistics. “The Logistics Directory tells the important story of Indiana’s robust transportation infrastructure which provides major logistical advantages for all modes of transportation and serves as the backbone of our economy,” said Ports of Indiana CEO Rich Cooper. “Our state is well-known for its central location and vast land-based trans-
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portation resources, but it also has significant maritime resources. Even with only 43 miles of shoreline on Lake Michigan, Indiana accounts for 40 percent of the U.S. economic activity related to Great Lakes shipping and ranks first in maritime employment on the Great Lakes. While also connected to the Ohio River, Indiana ranks sixth in domestic waterborne shipping and is home to the nation’s sixth largest inland port district in Mount Vernon.” A key feature of the Directory is a section of transportation maps for North America and Indiana that shows major highways, railroads, ports and airports. In addition to rankings for 100 logistics categories, the publication has nearly 1,000 business listings as well as logistics data for freight traffic, employment, NAFTA trade and all transportation modes. –CB Report
Ports & Shipping
Friday June 2, 2017
to earmark port of Baltimore sets 1Q record ppA p950M for ports with 2.56m tons of cargo T WASHINGTON
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he Port of Baltimore set a Rirst-quarter record in 2017, handling more than 2.56 million tons of general cargo at its public marine terminals in the Rirst three months of the year a Rive percent increase from the same quarter last year, ofRicials said. Increases in the number of cars and containers drove the overall bump in trafRic at the port, ofRicials said. Cars were up six percent yearover-year, and containers were up eight percent, which ofRicials attributed to the massive container ships that can now reach Baltimore through the expanded Panama Canal. A record 538,567 containers crossed the public piers last year. The port has led the country in shipping cars for the past six years, and it has been named the most efRicient U.S. port for the third year running. It averaged 71 container moves per hour per berth, faster than any other
major American port. The port generates about 13,650 direct jobs, and is indirectly linked to 127,000 jobs across the state, ofRicials said. Meanwhile, Texas legislators have given Rinal approval to a bill that shippers of synthetic resins and other heavy containerized commodities say would cut their transportation costs by allowing them to pack more cargo into containers
moving through Port Houston. If Gov. Greg Abbott signs the bill as expected, the bill would take effect next Jan. 1. It would authorize permits for maximum truck weights of 93,000 pounds for truck-trailer combinations with six axles, or 100,000 pounds with seven axles, for containerized imports or exports moving on designated roads within 30 miles of the port.
he Philippine Ports Authority (PPA) will be spending almost a billion pesos to develop and dredge 10 ports in different areas of the country. In separate bid bulletins, PPA said it intends to spend P948.865 million under its 2017 corporate budget to fulfill development and dredging contracts for the ports of Zamboanga, Davao, Coron and Puerto Princesa in Palawan; Salomague in Ilocos Sur; Calapan and Roxas in Oriental Mindoro; Guiuan in Eastern Samar; Lamao in Bataan and Tubigon in Bohol. Of the total, P229.773 million is allotted for the expansion of Zamboanga port, which includes construction of a reinforced concrete (RC) platform, a backup area, and a port lighting system. About P185.447 million will be spent on the construction and offshore installation of marine navigation aids at the Davao entrance channel of the Davao Port, while P168.755 million will go to similar projects at the ports of Puerto Princesa and Coron in Palawan. Works proposed include the construction, delivery, and offshore installation of aids to marine navigation system supply, construction. –CB Report
georgia ports chief predicts growth in FY 2017 G
SAVANNAH
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eorgia’s seaports in Savannah and Brunswick are on track to show record growth for the 2017 Riscal year that wraps up at the end of June, the chief executive of the Georgia Ports Authority said Monday. Total cargo moving through the two ports is expected to top the nearly 32 million tons (29 million metric tons) of imports and exports Georgia saw in Riscal 2015, the ports’ busiest year ever, said Griff Lynch, the authority’s executive director. He also predicted the Port of Savannah should surpass the record 3.6 million container units it saw two years ago. The big numbers Georgia ports posted in 2015 resulted from a temporary surge in business when labor woes on the West Coast caused shippers to divert much of their
cargo to ports on the East Coast. Lynch said business during the Rirst 10 months of the current Riscal year, which ends June 30, has raced ahead without the extra help. “What we have going on here is just true, organic growth,” Lynch said during the port authority’s monthly board meeting Monday. “We’re heading toward a record for the year if May and June come in with solid numbers.” He credited larger ships carrying heavier loads arriving via the Panama Canal, which completed a major expansion last summer. Increases in both imports and exports indicate a healthier economy is also fueling growth, Lynch said. For the Rirst 10 months of the current Riscal year, total cargo tonnage handled by the Savannah and Brunswick ports is up 7.5 percent compared to the same period last year. Most of the growth has come from increased trafRic in containers,
big metal boxes used to ship goods from consumer electronics to frozen chickens. Savannah, the fourthbusiest U.S. container port, has already handled a whopping 3.16 million container units since July 1. Savannah surpassed 3 million containers in a single year for the Rirst time in Riscal 2014. The latest numbers don’t include the boost Savannah saw from the COSCO Development, the largest cargo ship ever to visit the U.S. East Coast. Dock workers loaded and unloaded 5,500 total containers of imports and exports using six cranes alongside the giant ship after its arrival May 11. More big ships are on the way. The OOCL France, which has a slightly larger cargo capacity than the COSCO Development, is scheduled to call on Savannah on June 2. Meanwhile, The FAAN Aviation Security (AVSEC) and Nigeria Ports Authority (NPA) Security shall en-
force this order.’’ To address the menace of touting at the ports, the Order expressly stipulates that “all non-official staff shall be removed from the secured areas of airports. No official of FAAN, Immigration, security agency or Ministry of Foreign Affairs (MoFA) or any other agency is to meet any non-designated dignitary at any secure areas of the airport.” The acting president also directed that the official approved list of dignitaries that have been pre-approved to be received by protocol officers shall be made available to AVSEC and other relevant agencies ahead of their arrival at the airport. According to the Order, “any official caught soliciting or receiving bribes from passengers or other port users shall be subject to immediate removal from post and disciplinary as well as criminal proceedings in line with extant laws and regulations.’
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97% revenue of Multan Customs comes from oil MULTAN: Collector, Model Customs Collectorate Multan, Saud Imran Ahmad, has said that 97 per cent of Multan Custom’s revenue is generated from oil reaching Pak-Arab Refinery (Parco) and its products and the rest of the three per cent from Multan Dry Port and other sources. Only 3 per cent revenue from dry port and other sources was a point of concern, he said while addressing a gathering of industrialists and traders at Multan Chamber of Commerce and Industry (MCCI) late Tuesday night.
Friday, June 2, 2017
CUSTOMS BULLETIN
‘Financial year targets’ of rtos may suffer due to pending audit settlements’ LAHORE M hAYAt
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egional Tax OfRicers (RTOs) have failed to follow the Federal Board of Revenue (FBR) chairman’s instructions regarding settlements of audits on the payments of 30 percent of the total demands. All the audit matters are still pending which would have serious implications on the achievement of the RTOs Rinancial year’s revenue collection targets. These views were expressed by Lahore Tax Bar Association (LTBA) General Secretary Abdul Waheed while talking to Customs Today. The LTBA secretary general said that it was decided in a meeting held with chairman FBR that the RTOs would settle audit issues with the taxpayers on the payment of 30 percent of the payment of tax to the department however it has never happened as not a single case has been undertaken or settled by the department. He said that the very trend would push up the taxpayers to go to court of law which is their basic right depriving the department of important revenue. Delay in registration is another burning issue which has also played
havoc with the routine business of the department and the taxpayers. “Due to the unwarranted delays in registration, importers and exporters have to suffer from heavy losses in term of money and time due to which they cannot conduct
their routine business. In answer to question, he said that section 38 has created ripples among the business community as the raids were not only disturbing their routine business but also damaging their hard earned reputation. “However, the
matter was taken up at the chambers of commerce and LTBA levels and now the business community seem satisRied to some extent as the tax collectors have been instructed to conduct raids after adopting a due legal procedure with the permission
of chief commissioners and commissioners. Another very important issue is that the RTOs have started undue recoveries under 122 without serving of notices which is inappropriate he said adding that, proper service of notice should be done.
Multan dry port facing financial crisis due to decline in imports MULTAN
IMrAN ALI
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ultan Dry Port Trust (MDPT) is facing severe Rinancial issues due to decline in import clearances after the imposition of Punjab infrastructure levy. Sources told Customs Today that the import clearance from Multan Dry Port has dropped due to levy of Punjab Infrastruc-
ture Development cess. The levy has put negative impact on the clearances of import consignments from Multan Dry Port after the imposition of 0.9% PIDC in the recent few months. Local manufacturers and importers are avoiding their import clearances from Multan Dry Port after the imposition of Punjab Infrastructure Development Cess on import consignments from Punjab government. Multan Dry Port Trust is also handling less import containers from average numbers after the imposition of Punjab Infrastructure Develop-
ment cess. Sources told that Multan Dry Port Trust has handled 318 import consignments including 149 containers of 20 inches, 157 containers of 40 inches and 12 LCL from July 31 to end of the April. Multan Dry Port Trust has also handled 475 and 287 vehicles of import during this period. The number of import batches decreasing day by day from Multan Dry Port Trust after the implementation of Punjab Infrastructure Development Cess. Local Importers have moved from Multan Dry Port to Karachi
for the clearances of their import consignments to avoid dual taxation on their import consignments. The income of the Multan Dry Port trust is also decline due to handling of less import consignments. Multan Dry Port Trust charged Rs.6000 for handling of import container and MDPT have handled only six import containers during Rirst 20 days of May. The decline in the import consignment creating Rinancial issues for the Multan Dry Port Trust and their major income from import handling of contain-
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ers has been shifted to Karachi after the imposition of Punjab Infrastructure Development cess. Due to decline in the import, MDPT authority is facing Rinancial issues in meeting their port expanse. Multan Dry Port Trust has 32 members staff and it’s almost challenge for MDPT to pay salaries of their staff. Sources told Customs today that it’s very tough to run Multan Dry Port Trust with Punjab Infrastructure Development Cess and Provincial government is not ready to give any concession to importers on their import clearances.