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ISLAMABAD

TARIQ DERYA

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irectorate of Customs Intelligence and Investigation received Rs.868 million extra revenue by seizing contra banned smuggled goods and non-duty paid (NDP) vehicles during Qirst 11 months of FY17-18.

According to details told by Director Arslan Subughteen, Peshawar

I&I earned Rs.1585 million during Qirst 11 months of FY 17-18 whereas it received Rs.717 million during the same period of correspondence period. He added that during months of April-May, I&I received Rs184 million against Rs.138 million of revenue collection by seizing smuggled goods.

He said that during third quarter (January to March) FY17-18 the I&I received Rs.227 million whereas the I&I earned Rs.163 million during

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same correspondence FY16-17, he added that I&I Peshawar fetched Rs.977 million during 2nd quarter (October to December) FY17-18 whereas it earned Rs. 158 million during same correspondence period.

The Directorate of I&I Peshawar received Rs.196 million of revenue by seized smuggled goods and NDP vehicles during Qirst quarter (July to September) FY17-18 while it received Rs.55 million during same correspondence period.

FBR establishes 22 desks across country for scrutiny of nomination papers

Customs Export recovers Rs126.66m from two defaulter companies

Customs ASO seizes huge quantity of non-duty paid mobile phones

Customs Valuation revises values of metal needles

Adjudication-II issues final notices to two defaulter companies

FBR has established 22 scrutiny desks in different tax offices for the smooth scrutiny | SEE pAgE 02 |

Customs Export recovered Rs126.66m of taxes and duties from defaulter Cos | SEE pAgE 03 |

ASO seized large quantity of smuggled mobile phones in an enforcement activity | SEE pAgE 04 |

CustomsValuation has revised the customs values of tubular metal needles in bulk | SEE pAgE 09 |

Customs Adjudication-II has served final notices to two defaulter companies | SEE pAgE 16 |

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Customs Tribunal reserves decision on petition filed by M/s Chief Autos Friday, June 8, 2018

Islamabad

ISLAMABAD: Customs Appellate Tribunal Member, Ziauddin Wazir reserved decision on M/s Chief Autos’s customs matter hearing concluding arguments from sides. The bench on the last hearing had issued directives to parties to finalize arguments in couple of customs matters. The tribunal was hearing cases filed against Collectorate of Customs. The bench dated in office hearing on another customs case filed by M/s Fazal Razaq. M/s Fazal Razzaq had contested a decision announced by Directorate General of Intelligence and Investigations, Islamabad.

fBR establishes 22 desks across country for scrutiny of nomination papers

ISLAMABAD

ISLAMABAD

TARIQ DERYA

ShAhID mInhAS

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he Islamabad dry port (IDP) faced shortfall of Rs119 million under the head of customs duty against assigned revenue target for the month of May. Sources told Customs Today that Islamabad IDP was assigned Rs.373.90 million revenue collection target under the head of customs duty for the corresponding month of fiscal year 2017-18.

It is necessary to mention here that that Air Freight Unit also showed revenue collection shortfall during the said month. Sources said that AFU earned Rs.192.66 million under head of CD against assigned revenue collection target of Rs.307.73 million AFU received Rs12.65 million less revenue under head of CD during May against revenue collection of same correspondence period, sources said, adding that AFU Islamabad earned Rs205 million under head of CD during same correspondence period. Sources said that AFU has suffered shortfall under head of CD due to transfer of Information Technology (IT) companies to other stations. Another reason of shortfall was opening of New Islamabad International Airport (NIIA), they said, adding that during the shifting period from old to new airport, the importers of IT companies shifted their business to other stations.

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ederal Board of Revenue (FBR) has established 22 scrutiny desks in different tax ofQices for the smooth scrutiny of nomination papers submitted by the candidate taking part in the general elections 2018.

OfQicial sources told Customs Today that FBR has established scrutiny desk in Corporate Regional Tax OfQicer Karachi, Corporate Regional Tax OfQice Lahore and 20 others Regional Tax OfQices across the country. Sources said that these desks will directly provide the required information to Election Commission of Pakistan (ECP); however, these desk are working under the supervision of Broadening Tax Base Director General Tanveer Akhtar.

Meanwhile, the aforesaid 22 desks in the regional tax ofQices will inquire data from National Data Base Regulatory Authority (NADRA) after the ofQicial correspondence.

While it is also learnt here that FBR has also partial data of tax record, as most of the politicians keeps hidden its assets like Qlats, vehicles, immoveable and moveable properties or keep it in unnamed accounts to avoid tax. It is important to mention here that Broadening Tax Base Director General Tanveer Akhtar has already leaded the team for scrutiny of Election 2008 and 2013.

Dry port, Afu post revenue collection shortfall in may

Meanwhile, Federal Board of Revenue has decided to recruit/hire at least 212 Customs ofQicers of Basic Pay Scale (BPS-16) across the country. OfQicial sources told Customs Today that these appointments will be conducted through Federal Public Service Commission (FPSC).

After the approval from the com-

mittee, the Board has ofQicially sent a letter to the FPSC for recruitment of the said number of Customs inspectors and Customs intelligence ofQicers. Sources further said that these 212 posts of Customs ofQicers include 16 positions on merit, 106 for Punjab, 40 for Sindh, 24 for KP, 13 for Balochistan, 9 for Gilgit-

Baltistan and four vacancies have been assigned to Azad Kashmir.

Sources said that these Customs Inspectors and Customs Intelligence OfQicers will be deployed in different cities of the country; however, they will be specially deployed in the projects working under China-Pakistan Economic Corridor (CPEC).

fBR develops module for correction in e-payment receipts

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ISLAMABAD

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ederal Board of Revenue (FBR) has developed module for correction in computerized payment receipts (CPRs) for sales tax and income tax to facilitate taxpayers.

In an ofQicial note to all chief commissioners of Inland Revenue ofQices, the FBR said that in order to facilitate the Qield ofQices as well as

taxpayers to minimize the time required for CPRs correction (ST&IT), authority to make such corrections have been disseminated at Qield ofQice level.

For the purpose, a module to make correction in CPRs has been developed and deployed at each Qield ofQice level. Scope of such changes is limited to correction of following two speciQic areas: change in NTN/name of taxpayer; change in tax period.

The FBR said that logins of the

said utility have been created and password to operate shall be email to concerned chief commissioner to ensure security.

Local DBAs have also been informed about the change and in case of any issue they can be contacted, the FBR said.

The FBR further informed that the cases pending at Board’s/Computer Wing’s level may be processed as the central logins being used for correction of CPRs would be disabled on June 14, 2018.

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Customs Preventive’s ASO seizes smuggled goods worth Rs7.02m KARACHI: Customs Preventive’s Anti-Smuggling Organization (ASO) has seized smuggled goods worth Rs7.02 million.

Information was received that attempt would be made to move smuggle goods. Deputy Collector Muhammad Faisal tightened the vigilance and subsequently betel nut, Chineseorigin mobile phones, gutka and other foreign origin goods were recovered from a truck.

Shc seeks comments on petition filed by m/s gonal Int’l

Friday June 8, 2018

Karachi

customs Export recovers Rs126.66m from two defaulter companies

KARACHI

m.B RAnA

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he Sindh High Court (SHC) directed customs officials to file their comments on a constitutional petition filed by M/s Gonal International moves against placement of name of agricultural pesticides as under restricted goods category in chapter under serial no 50 of import policy. A two-member bench, headed

by Justice Aqeel Ahmed Abbasi heard the matter. On Thursday, counsel for customs department seeks further time to submit comments on next date of hearing, therefore, court granted time and adjourned the matter. Earlier, counsel for petitioner stated in its constitutional petition that it is engaged in the lawful manufacturing, marketing.

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principal appraiser, appraisers transferred KARACHI

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ederal Board of Revenue (FBR) issued orders to transfer principal appraiser and appraising officers to different locations with immediate effect. According to notification no: 1148C-III/2018, Principal Appraiser Sultan Aurangzeb who is currently performing his duties at Port Qasim has been transferred to Customs Collectorate Gwadar, Appraising Officer Noor Elahi Khan has been transferred from Port Qasim to Customs Gwadar, Appraising Officer Muhammad Jahangir is transferred from Appraisement West to Customs Gwadar, Appraising Officer Naeem Khan transferred from Appraisement West to Customs Gwadar. The notification further stated that Appraising Officer Muhammad Akram Basra who is currently posted at Directorate General Customs Valuation is hereby transferred to Customs Appraisement West Karachi.

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KARACHI

wAQAR AhmED AnSARI www.customsbulletin.com

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he Customs Export recovered Rs126.66 million of taxes and duties from defaulter companies in the month of May 2018.

Sources told Customs Today that the Customs Export has recovered evaded amount of taxes and duties of Rs8.29 million from defaulter companies which were issued with notices to pay the outstanding dues.

Sources said that during scrutiny of the import data, it was revealed that M/s Niaz Dying, availed undue benefits and concessions by importing different chemicals by misusing the SRO 561 through Examiner Shabbir Javed on 7th August, 2017.

Sources said that the company was allegedly involved in tax evasion of Rs 4.29 million. Investigations were continued and after detecting the tax evasion, the Customs Export issued it with a final notice on 15th May 2018 to deposit the evaded amount within 14 days.

After receiving the notice, the management of M/s Niaz Dying deposited the evaded amount in the official account of the Customs Export on 1st June 2018.

Sources said that the management of the M/s Fatima Cotton and Export also cleared Rs 4 mil-

lion of taxes and duties. Sources said that M/s Fatima Cotton and Export also availed undue benefits and concessions and avoided paying taxes according to the customs bylaws.

Meanwhile, The Customs Export recovered an evaded amount of taxes and duties of Rs 13.54 million from defaulter companies which were issued with notices to pay the outstanding dues.

m/s niaz Dying, availed undue benefits and concessions by importing different chemicals by misusing the SRo 561 through Examiner Shabbir Javed

court seeks comments on plea filed by I&I

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KARACHI

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he Customs Court Judge Syed Faiz Rasool Rashdi directed counsel for the suspect to submit comments on petition Qiled by Syed Azhar Hussain Shah Deputy Director/ Investigation ofQicer I&I-FBR for attachment of property & bank accounts of suspect namely Ameer Hamza son of Abdul Majeed for suspect has knowingly and willfully

made offences of concealment of income tax, acquiring assets from proceeds of crime by committing “predicate offence” of tax evasion whose quantum is Rs339,927,970.

On Thursday, counsel for the suspect appeared before the court and sought time to submit his comments for next date of hearing, therefore, court granted time and adjourned the matter. Earlier, investigation ofQicer further submitted before the court that above mentioned suspect knowingly and willfully submitted

inaccurate/ wrong particulars of income and wealth statement to FBR through his income tax returns Qiled for tax year 2015 while he failed to Qile the tax returns as well as the wealth statements for tax years 2016 and 2017.

He submitted that suspect has concealed his true revenue/ turn over/ income from government with intention of evading due tax, his declared Qigures do not match with his actual Qigures when checked out/ probed.

Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s Samama Black Stone & Export availed undue benefits and concessions after exporting different consignments of marble sheets, (24×48) and other polish items by misusing the SRO 566 through Waseem Imran on January 29, 2017. Sources further said that the company was allegedly involved in the tax evasion of Rs 5.48 million.

Rupee strengthens to reach Rs118.85 he Pakistani rupee on further strengthened against the US dollar in open market and remained unchanged in interbank. As per the local money market, the dollar closed shedding 20 paisas in open market for buying at 118.30 and for selling at 118.85. The US currency remained unchanged in interbank for buying at 115.50 and for selling at 115.70.

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ECC approves five-year tax exemptions for FATA & PATA Friday June 8, 2018

Lahore

ISLAMABAD: The Economic Coordination Committee (ECC) has approved tax exemptions and other incentives for the next five years for the people of erstwhile FATA and PATA after the landmark 31st Constitutional Amendment.

ECC also approved exemption of income tax on profits and gains of existing businesses conducted by individuals for a period of five years.

These businesses; however, need to be registered with FBR by 30th September 2018. ECC approved exemption from sales tax to the retailers to facilitate the general consumers.

fTo advisor hears customs ASo seizes huge implementation appeal quantity of nDp mobile phones against cRTo LAHORE

LAHORE

SAJID nAwAZ

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ederal Tax Ombudsman (FTO) has heard the implementation appeal against the Corporate Regional Tax OfQice(CRTO).

During the proceedings of case, the counsel for the appellant argued that the RTO-II had failed to release the sales tax refund to the appellant since last two years.

He said the RTO-II collected excessive taxes from the company during the last two years. The petitioner approached the officials concerned several times for the release of refunds, but the RTO officials failed to clear refunds after the passage of a reasonable time.

Finally, the appellant decided to approach the FTO seeking in-

four customs superintendents transferred ollector Customs Collectorate of Preventive issued a notification according to which four customs superintendents are transferred to different stations with effect from June 1, 2018. According to notification no: 01/HRD/Esstt/ 2016-17 Superintendent Muhammad Javaid Iqbal who is currently performing his duties at Railway Station T-10 is hereby transferred to Land Freight Unit (LFU) (Export and Transit) branch, Superintendent Arshad Mehmood is hereby transferred to Land Freight Unit Wagha (Import), Superintendent Nayyer Sultan who is performing his duties at Customs Headquarters is hereby transferred to Railway Station T-10 (Export). The notification further stated that Superintendent Abdul Naeem who is currently posted at Air Freight Unit of Allama Iqbal International Airport is transferred to auction cell (in addition to his own duties). –CB Report

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tervention in this case. The counsel appealed the FTO advisor to direct the CRTO to clear the refund claims.

The counsel further said that delay in release of refunds put burden on taxpayers, adding that theCRTO should make audit of the case and release the extra amount collected by it from the taxpayer.

On the other hand, counsel for CRTO argued that the appellant has not submitted all record to the office for claiming refunds. If appellant provides the accurate record, the CRTO will release refunds after a proper assessment, he added.

After hearing the arguments from both sides, adviser for FTO Muhammad Zahiruddin heard the implementation appeal by M/s Shahtaj Textile Mills Limited. The same appeal will be heard in next date of hearing.

m hAYAT

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ustoms Collectorate of Preventive Anti-Smuggling Organization (ASO) seized large quantity of smuggled mobile phones in an enforcement activity.

Sources told Customs Today that a team on directions of Collector Customs Faiz Ahmad received credible information regarding movement of smuggled goods. He immediately directed ASO Agha Qadeer to tighten the vigilance. The ASO staff raided a house near Karin Hospital and recovered a huge quantity of smuggled mobile phones.

During investigations it came on record that accused persons are smuggling mobile phones from Peshawar since long time and supplying the smuggled goods in mobile markets of the Lahore city.

customs Appellate Tribunal rejects appeal in imported heaters case

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ustoms Appellate Tribunal has dismissed the appeal Qiled by M/s DE Technics Private Limited against the Collector of Customs MCC, (Preventive) Lahore, Collector of Customs (Appeals) Lahore and others. Omer Arshed Hakeem, member judicial bench-II heard the arguments from appellant and respondent and passed judgement with remarks that appellant has failed to establish allegations by him and same appeal is dismissed.

As per brief history of case, the

appellant imported a consignment of cartridge heaters, bands heaters and ring heaters from China at transactional value of $15479 and saught clearance vide GD No LPFIHC 6970. The goods were examined and processed for assessment.

The assessing ofQicer initiated proceedings and assessment were Qinalized. The order in original passed against the importer. The impugned order challanged before the Collector of Customs (Appeals) who rejected the appeal. –CB Report

In pursuance of the above information warrant u/s 162 of the Customs Act,1969 were obtained from the Judicial Magistrate, Lahore, the staff raided on the warehouse.

On search conducted in the presence of above said house owners and other witnesses, more than 300 mobile phones were recovered from the accused. Customs team also arrested

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three accused from the spot. Worth of the smuggled goods is more than 20000 in local market. Further investigations are under way. The raiding staff included Superintendent Agha Qadeer Haider, Shahid Khan, Nasir Saeed, Shahid Bhatti, Abdul Rehman Butt, Sajjad Bukhari, Anjum Sheraz, Maratab Mushtaq, and Azam Wattoo inspectors.

pak-India trade plunges to $1.25b rade activities between Pakistan and India have slowed down in current Qiscal year of 2017-18, as the bilateral trade between the two rival nations has dropped to $1.25 billion from $2.4 billion of Qive years ago in 2013.

Sources in trade and industry said that Pakistan and India are presently doing a total bilateral trade of around $5 billion annually most of which is done via Dubai, besides unofQicial trade across the Line of Control (LoC) on Srinagar-Muzaffarabad Road which is not documented. According to the Pakistan Customs ofQicials, the

number of trucks crossing over from India has reduced signiQicantly to just 4-2 from the normal routine of 150 truckloads due to non-tariff barriers from Pakistan including, Customs checking, Rangers inspection and close investigation of phytosanitary quarantine department. However, the number of truckloads going from Pakistan to India is almost constant in the range of about 100, ofQicials said. Sources told that Pakistan Rangers has created an atmosphere of high alert, with vigorous investigation of all consignment from Indian side since 2016. –CB Report

customs Tribunal decides appeal in seized gold case

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LAHORE

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ustoms Appellate Tribunal has dismissed the appeal in seized gold case. The appeal was Qiled

by Rubina Mubasher, a resident of HaQizabad against Collector of Customs (Preventive) and others.

Saud Imran Ahmed, member

technical bench-I, heard the arguments from both sides and decided the case with remarks that appellant has failed to produce relevant documents to prove legal ownership of seized gold so the appeal is dismissed. According to the details of case, customs staff intercepted a lady passenger of Saudi Airline and detected a gold bullion. During further investigation it was found that net

weight of gold is 400 grams. Lady passenger stated that she purchased gold from Saudi Arabia and she will produce legal documents regarding its purchase within three days. The recovered gold bullion weighing 400 grams worth Rs1,748,686 was detained under section 186(I) of Customs Act 1969 for further inquiry and investigation. After show cause notice, adjudication proceedings

were culminated and order-inoriginal was passed with remarks that gold bullion weighing 400 grams is out-righty conQiscated in favour of government. Being aggrieved with the order, appellant Qiled the case before the Customs Appellate Tribunal. Her counsel argued that she bought the gold bars from Saudi Arabia and kept it in her luggage on her return to Pakistan.

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Friday, June 8, 2018

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MULTAN

ImRAn ALI

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nder supervision of Collector Ambreen Ahmad Tarar, the Customs Collectorate has collected Rs1518.829 million under the head of petroleum development levy for the month of May. Sources told Customs Today, that Multan Customs collected petroleum development levy from oil marketing companies on the clearance of ex-bonding of High Speed Diesel (HSD) shipments from Multan Dry Port. The Collectorate of Multan Customs collected all taxes from oil marketing companies including cus-

toms duty, sales taxes, federal excise duty, income taxes, additional sales taxes, petroleum development levy from oil marketing companies at the time of exbonding clearance from Multan Dry Port. Petroleum development levy is a federal tax and is collected by customs department on the clearance of High Speed Diesel (HSD) in Pakistan.

The Collectorate of Multan Customs receives almost 97 percent of its revenue collection through the clearance of High Speed Diesel and other petroleum products from the PARCO oil reQinery of Mahmood Kot. The Multan Customs

made collection of Rs1518.829 million from the from oil marketing companies in wake of petroleum development levy during May 2017-18.The Customs Collectorate collected Rs1484.899 million during the corresponding period of May 2016-17.

It made almost Collection of Rs.13903 million from July to May 2017-18 in economic year 201718.Multan Customs has observed almost Rs.1.8 billion progress in petroleum development levy due to extra demand of HSD products in the Qirst eleven months of existing economic year 2017-18.

toms an cus t l u m of ent of torate 7 perc 9 collec t s o gh es alm throu n o i t receiv c olle eed enue c igh Sp h f its rev o arance leum the cle r petro e h t o and Rco Diesel the pA m o r f s ct produ

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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

Loan of $500m from chinese bank

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he government has signed another commercial loan programme of $500 million with the Industrial and Commercial Bank of China, bringing the total loan it obtained from the bank to $1 billion just in three months. Last month, the government took a total of $704 million loans, taking foreign borrowings to new heights of $6.6 billion just in seven months of the current fiscal year.

Reports suggest the external loans could cross $10 billion mark for the second consecutive year. As the elections are nearing, the speed of taking loans has been unwittingly revved up and there seemed no speed breaker to stop it. As the external debt and liabilities are $90 billion mark, the volume of foreign loans is now equal to 86 percent of the budgetary allocations which were approved by parliament in June last year. After investing in billions of dollars projects under the China Pakistan Economic Corridor, China has emerged as the single largest loan provider, lending a total of $1.6 billion during the last seven months. The money is equal to one-fourth of the total foreign loans the country has received during the period. Pakistan also received another $610 million under the head of project financing during the current fiscal year. The government took the loan from the Chinese bank to support its depleting foreign exchange reserves and no one knows how the government will deal with the financial catastrophe when it will have to return the loans. The debt servicing has already been a problematic area and accepting loans from one source or the other is adding insult to injury. In the absence of increase in the industrial output, it is not a rocket science to understand that the economy is heading toward disaster.

Earlier, the government had depreciated Pakistani rupee, which not only increased the volume of loans, but inflation in the country. On the other hand, the move also opened a Pandora’s Box to fight corruption, money laundering and smuggling at the same time. It is yet to be seen how the loan of $500 million will prove beneficial for the economy, but a snowball of debt servicing cannot be ruled out in the near future.

Unfortunately, the State Bank of Pakistan sometime becomes part of problem than the part of solution.

ADB report on economy T

LAHORE

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he Asian Development Bank, in its report the Asian Development Outlook 2018, cautions that the pace of growth of Pakistan’s economy may slow down to 5.1 percent as fallout of the growing external account challenges. The report projects the expected growth in the country’s gross domestic product at 5.6 percent on strong prospects of the large-scale manufacturing sector and recovery of the agriculture sector for the second year in a row. But difQiculties in the balance of payment problem could outweigh the improvements in supply-side. The bank praises the

ongoing infrastructure investments under the China Pakistan Economic Corridor which would strengthen economic growth, revive exports, improve power supply and contain inQlation despite twice increase in the oil prices.

The bank also expects the Pakistani government to maintain a stronger growth trajectory through domestic and regional stability, competitiveness, revitalization of the public sector enterprises and completion of the infrastructure projects within the time frame. The rising current account deQicit could pose a challenge to the Qinancial sector, but improvement in export sector would ensure the brighter economic prospects. However, the

bank still suggest ‘greater exchange rate Qlexibility,’ which shows the bank is very particular about its own interests and has nothing to do with the improvement in the Pakistani economy.

The government will have to introduce structural reforms in every sector of the economy and devise a new standard operating system to not only improve administrative affairs, but also enforce industrial compliance with quality control and better its position in the global ease of doing business index. The ofQicial rigmarole is the biggest enemy of Pakistan which is adding further woes in business, trade and investment. The government departments will have to work in

tandem and improve coordination among them. It appears the ofQicials are incapable of doing anything positive or they are not taking interests in the ofQicial business due to inherent lethargy.

It is time the political leadership should also change its approach toward national affairs with a strong will to overhaul the entire government system. The largescale manufacturing sector has somewhat leverage and say in the ofQicialdom, but the small and cottage industry is soft target for certain government agencies. It is also important to note that the policymakers insist on exporting edibles such as wheat, rice, pulses and fruits which have more demand in Pakistan than abroad.

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Customs stopped from taking action in case of full payment KARACHI: The federal government, through amendment in Finance Act, has restrained Pakistan Customs from taking action in cases where full amount of short paid duty, taxes or other charges are paid voluntarily prior to initiation of audit inquiry or investigation.

Through Finance Act, 2018 a proviso has been added to Sub-section 3 of Section 32 of Customs Act 1969 to stop the customs authorities against taking such action.

Sub section 3 of Section 32 mainly deals where any inadvertence, error or misconstruction of duty and tax have not levied. In the latest changes to this section, the customs authorities will not initiate audit and investigation in case full amount of short paid duty, taxes or other charges are paid voluntarily prior to initiation of audit inquiry or investigation.

customs Export recovers evaded amount of Rs13.54m from defaulter cos KARACHI

m.B RAnA

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he Customs Export recovered an evaded amount of taxes and duties of Rs 13.54 million from defaulter companies which were issued with notices to pay the outstanding dues. Sources told Customs Today that during scrutiny of the import data, it was revealed that M/s Samama Black Stone & Export availed undue benefits and concessions after exporting different consignments of marble sheets, (24×48) and other polish items by misusing the SRO 566 through Waseem Imran on January 29, 2017. Sources further said that the company was allegedly involved in the tax evasion of Rs 5.48 million. After detecting the tax evasion, the Customs Export served on it a final notice on 16th May, 2018 to deposit the evaded amount in 14 days.

After receiving the notice, the management of M/s Samama Black Stone & Ex-

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Friday June 8, 2018

National

customs Valuation revises values of metal needles T

KARACHI

wAQAR AhmED AnSARI www.customsbulletin.com

he Customs Valuation has revised the customs values of tubular metal needles in bulk, disposable surgical metal needles (sterilized) and disposable veterinary metal needles (sterilized).

Karachi Customs Valuation Director Iqbal Muneeb revised the customs values of above-said items through Valuation Ruling No.1306/2018. The customs values of metal needles were earlier determined vide Valuation Ruling No.1011/2017. There were several representations from commercial importers wherein they contended that customs values determined in the existing valuation ruling are not reQlective of prices in the international market.

Meanwhile, Customs Valuation Director General Surriya Butt Saturday rejected revision of Valuation Ruling No.760 and 768/2015 and upheld the values of IV cannula, IV catheter and another value of polyester yarns, determined vide the said valuation ruling.

Source told Customs Today that

M/s Advance Medical accessories and others importers approached Director General Customs Valuation praying that the Valuation Ruling No.760,768/2015 does not cover the present Qluctuation of prices in international market which have been reduced to about half of the prices. The Director General noted that importers

had failed to prove with conclusive evidence that the values worked out in the impugned ruling were on higher side. On the other hand, the department presented details of valuation exercise conducted to determine the value of IV, cannulla, IV catheter and another value of polyester yarns, Perusal of case record and the defense of

the department reveal that the Directorate of Customs Valuation while issuing the impugned valuation ruling associated the importers including the petitioners. Further, the values of subject goods have already been rationalized by the department while revising the previous valuation ruling and notifying the impugned ruling.

fTo seeks arguments in tax refund appeal port deposited the evaded amount in the official account of the Customs Export on 31st May in the favor of Custom export. Another defaulter company named M/s Royal Magnetic and engineering also cleared Rs 3.85 million of taxes and duties. Sources told the correspondent that M/s Royal Magnetic and engineering also availed undue benefits and concessions and avoided paying taxes according to the customs bylaws. The Customs Export authorities served on it a final notice on 17th of May, 2018. After receiving the notice, the management of the M/s Royal Magnetic and Engineering deposited the evaded amount of taxes into the official account.

LAHORE

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SAJID nAwAZ

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he Federal Tax Ombudsman (FTO) on Friday has sought arguments from Regional Tax OfQice in a case Qiled by M/s Pak Project Engineering Limited against the Regional Tax OfQice, (RTO-II) Lahore.

The counsel for the appellant argued that the RTO had failed to release the sales tax refund to the appellant for the last two years.

He said that RTO-II collected excessive tax from the company during the last two years. The petitioner approached the ofQicials concerned several times for issuance of the refunds, but the RTO ofQicials failed to clear the refunds after the passage of reasonable time.

Finally, the appellant decided to approach the FTO seeking interfer-

ence in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims on priority basis. The counsel further said that the delay in issuance of refunds put burden on the taxpayer, adding that the RTOII should make audit of the cases

and release the extra amount collected by it from the taxpayer.

On the other hand, counsel for RTO-II argued that the appellant has not submitted all record in the office for claiming refunds. If appellant provides accurate record, the RTO-II will issue the refunds

after proper assessment, he added.

After hearing the arguments from both sides, Advisor Muhammad Zahiruddin put off the case until next date for further hearing and directed the RTO to appear before him on said date to present arguments in the case.

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Customs Preventive impounds nine non duty paid luxury vehicles Friday June 8, 2018

National Deputy collector moazzam Raza undertakes transfer, postings

LAHORE: Collectorate of Customs Preventive has impounded nine non customs paid luxury vehicles worth over 40 million.

Sources told Customs Today the ASO car cell scout consisting Inspectors Maratab Mushataq and Sajjad Bukhari on the direction of Additional Collector Tayba Kayani under the supervision of Deputy Collector Muhammad Moazzam Raza, Superintendent Nasir Tara, Agha Qadeer intercepted suspicious luxury vehicles and detained nine as the non-customs paid.

customs preventive transfers superintendents, inspectors

LAHORE

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m hAYAT

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ollectorate of Customs Preventive Deputy Collector Muhammad Moazzam Raza has issued a notification according to which six employees are transferred with immediate effect. According to notification no: 01HRD/Estt/82/2016-17/495 Office Superintendent Muhammad Saeed who is currently posted at Land Freight Unit has been transferred to Air Freight Unit of Allama Iqbal International Airport. Upper Division Clerk Aslam Khan son of Jalal Khan is transferred from Headquarters Tech branch to Headquarters Office R&R branch, Havaladar Mohammad Boota son of Feroz Din has been transferred from State Warehouse to Airport Traffic. The notification further stated that Sepoy Khalid Mehmood son of Mohammad Ibrahim who is currently posted at Air Freight Unit has been transferred to Railway Station T10 while Sepoy Riaz Hussain son of Khushal Khan has been transferred from Airport Traffic to ASO.

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customs preventive transfers seventeen employees ollectorate of Customs Preventive Additional Collector Tayyeba Kayani has issued a notification no: 01-HRD/Estt/8/2016-17/486 to transfer seventeen employees of the Collectorate to other stations with immediate effect. According to the notification Office Superintendent Jamil Akhtar is hereby transferred from AFU to LFU Wagha, Head Clerk Shahzad Hussain transferrd from General Post Office (GPO) to Headquarters (Technical Branch), Upper Division Clerk Mudassar Ahmed transferred from Air Freight Unit to Railway Station T-10. Upper Division Clerk Asghar Ali is transferred to AFU General Post Office, UDC Amjad Hussain Shah is transferred AFU to LFU Wagha.

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ustoms Collectorate of Preventive Deputy Collector Headquarters Muhammad Moazzam Raza issued notiQication to transfer superintendents and inspectors with immediate effect.

According to the notiQication no: 01/HRD/Estt/82/2016-17/496 services of Superintendent Mohammad Nasir Minhas who is currently posted at Air Freight Unit of Allama Iqbal International Airport put at the disposal of the Additional Collector Wagha while Superintendent Arshad Mehmood also performs his duties which will be assigned by deputy collector of Air Freight Unit.

The notiQication further stated that Superintendent Malik Javaid

Iqbal transferred from Land Freight Unit Wagha to Air Freight Unit, Inspector Iqbal Ahmed Baig trans-

ferred from Land Freight Unit Wagha to Air Freight Unit, Inspector Masood Arif Cheema who is cur-

rently performing his duties at PFC Wagha transferred to Air Freight Unit, Inspector Abrar Hussain who is currently posted at Railway Station T-10 transferred to AFU. Inspector Sultan Masood Noor transferred from Land Freight Unit Wagha to Air Freight Unit, Inspector Malik Shahnawaz Langrial transferred from Land Freight Unit Wagha to AFU. Inspector Ahmed Hussain transferred from Airport TrafQic to AFU, Inspector Tariq Usmani transferred from AFU to LFU Wagha and Inspector Syed Athar Hussain Zaidi transferred from Air Freight Unit to State Warehouse with immediate effect.

According to notiQication all the employees stand relieved from their duties from 4.6.2018 with the direction to report at their new place of posting immediately.

fBR assigns revenue collection task of Rs4528.5 million for June T

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ImRAn ALI

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he Federal Board of Revenue (FBR) assigned Rs.4528.5 million revenue collection target for the month of June to Customs Collectorate According to details, Customs Collectorate has been assigned monthly revenue collection task after the month of June from Federal Board of Revenue. Multan Customs were allocated different revenue collection tasks under the head of customs duty, sales taxes, federal excise duty (FED) and withholding taxes (WHT) for the on-going month of June 2017-18.

Multan Customs Collectorate has been set highest customs duty revenue collection target for current economic year 2017-18 and Federal Board of Revenue allotted Rs.1692.55 million for last

month of fiscal year 2017-18. The Customs Collectorate was given Rs.2786.73 million target for the collection of sales tax for the du-

ration of June 2017-18. The Federal Board of Revenue has given collection target of Rs.21.26 million in terms of federal excise

duty (FED) and set income tax target of Rs.27.96 million in wake of Income taxes for the period of June 2017-18.

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Collector Adjudication issues SCN to suspects involved in attack on ASO squad ISLAMABAD: The Collector Adjudication Seema Raza Bokhari served a show cause notice on owner of smuggled goods who attacked ASO raiding party after tearing their government uniform, took their wallets, cell phones and also opened fire on them where three customs staffers got serious injuries as well as the official vehicles of staff also damaged. Brief facts of the case are that on 30th March 2018 ASO squad raided a godown at Peshawar but the owners of godown fled away from the place of occurrence.

The sources told that the raiding staff took over all the four trucks loaded with foreign origin miscellaneous goods.

fBR decides to appoint foreign experts for tax auditing KARACHI

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he Federal Board of Revenue (FBR) has decided to appoint foreign experts to conduct tax auditing and eliminate evasion. The FBR has authorised the Commissioner Inland Revenue to call for record and conduct audit of taxpayers and to set up a panel of auditors for conducting specialised audit, including forensic audit, said an official at Regional Tax Office, Karachi. The official said the government added the provisions into the Income Tax Ordinance, 2001 through Finance Act 2018. Under the new amendment into the ordinance, a tax audit expert of an international tax organisation or a tax authority outside Pakistan can be deployed

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under an audit assistance program.

The individual will only be included as a member in the special audit panel if an agreement of confidentiality has been entered between the board and individual, international tax organisation or a tax authority, according to the amendment. A tax official said the amendment was made in the wake of exchange of information under the Organisation of Economic Co-operation and Development (OECD) and rising complexity of audit in various sectors, including telecom and banking. On September 14, 2016, Pakistan became the 104th economy to join the most powerful multilateral instrument against offshore tax evasion and avoidance.

OECD member countries are bound to exchange financial data of non-residents to curb tax evasion.

National

collector Adjudication Seema issues show cause notice to owner of nDp vehicle

Ihc seeks record of cases filed against customs Appellate Tribunal, ATIR ISLAMABAD

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slamabad High Court directed parties to submit record of the cases while hearing four customs matters filed against Customs Appellate Tribunal and Appellate Tribunal Inland Revenue. A citizen, M Anwar Khan had filed four customs references against Customs Appellate Tribunal and Appellate Tribunal Inland Revenue. IHC division bench comprising Justice Aamer Farooq and Justice Mohsin Akhtar Kiyani was hearing the matters. Meanwhile another bench also dated in oďŹƒce hearing of cases submitted by M/s Pakistan Tobacco Company Limited. The bench also heard another tax matter filed by M/s Pakistan Tobacco Company Limited. The appellant had filed petition challenging a show cause notice issued by Large Taxpayers Unit, Islamabad. M/s Pakistan Tobacco Company Limited had contested a show cause notice issued by the field oďŹƒces of Federal Board of Revenue. According to details, M/s Pakistan Tobacco Company Limited had challenged recovery notice issued to it under head of outstanding sales tax by the LTU, Islamabad.

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ShAhID mInhAS

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ollector Customs Adjudication Seema Raza Bukhari served a show cause notice in contravention case no: 194/2018 to the owner of non duty paid vehicle for evading tax to the tune of Rs.3.9 million. According to the show cause notice the collector has directed both the respondents the owner of nonduty paid vehicle and deputy collector Customs Dry Port to furnish the documentary evidence if any and present the oral arguments to substantiate respective position or claim.

Show cause further stated that in case a party does not appear on the date Qixed for hearing then the case will be decided after hearing the party present in the court.

Brief facts of the it has been reported by the Directorate of Internal Audit (Customs) while conducting the audit of car cell Customs Dry Port. It was revealed that short realization of surcharge to Rs. 3.9 million on the import of Toyota Hiace van imported on the name of Roohullah. The report further added that clearing agent has paid the surcharge amount of Rs. 183,837 vio-

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lating the provision of section 16, 32(3A) of the Customs Act, 1969 and Section 3 of Import Export (Control) Act 1950.

Meanwhile the in the light aforesaid report and in exercise of the power vested under Section 179 of the Customs Act 1969 the Collector Adjudication Islamabad Seema Raza

Bukhari has issued a show cause notice to the owner of the to the owner named Rooh ullah as to why not the evaded amount of duty /taxes amounting Rs3.9 million should not be recovered and why action should not be taken against him under Section 156 (1) (9) (14) of the Customs Act 1969.

pcA detects tax evasion by m/s Ayoub garments & Exports

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KARACHI

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he Directorate of Customs Post Clearance Audit (PCA) on Monday detected duties and tax evasion of Rs 14.45 million by M/s Ayoub Garments and Exports, it is learnt here.

Sources told Customs Today that M/ Ayoub Garments and Export imported a consignment of fabric used chemicals (for printing) sewing machines, parts of juki machines and got it cleared from the PICT Karachi on 22nd January 2018, by paying customs duty at 8 percent after claiming the beneQit of the SRO 563/2007.

However, the subject items were correctly classiQiable under the PCT 5247.4509 attracting customs duty at 12 percent and income tax at 10

percent, thus, by way of mis-declaration of classiQication, the company evaded/short-paid Rs14.45 million.

The goods were cleared by Appraiser

Nabeel Rasheed. Sources told that the importer violated the provisions of Section 24 (58-A) of the Customs Act-1969, Section 47 read with Section 34 of the Sales Tax Act-1990 and Section 41 of Income Tax Ordinance 2001 punishable under clauses (178) of Section 144(2) of the Customs Act-1969, Section 84 of the Sales Tax Act-1990 and Section 36 of Income Tax Ordinance 2001 and Section 2-B of the Sales Tax Act-1990 read with chapter Y of the Sales Tax Special Procedure Rules 2007 (Special procedures for payment of sales tax by the importers) and under relevant provisions of Income Tax Ordinance 2001.

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World Customs

Limited Cabinet reshuffle in Saudi Arabia

Manama: Saudi King Salman Bin Abdul Aziz has partially reshuffled the government, giving Prince Badr Bin Abdullah Al Saud the portfolio of the newlyestablished ministry of culture after extracting it from the Ministry of Information and Culture.

All activities related to culture will be transferred to the new ministry in a move that highlights the growing significance culture is gaining in the kingdom. The royal orders early on Saturday saw the appointment of Ahmad Al Rajhi Minister of Labour and Social Development.

Friday June 8, 2018

cheaper fuel prices in nepal spur smuggling

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Russian bank head sees bailout costs rising he man in charge of resolving Russia’s largest ever banking failure has warned that the costs of saving top-10 lenders Otkritie and B&N may rise higher than the $27bn budgeted. Otkritie was Russia’s largest private sector bank by assets until last summer, when its balance sheet shrank by a third in a run on deposits before the central bank stepped in to nationalise it. It is to merge with B&N Bank, a top-10 lender that was nationalised a month later. Mikhail Zadornov, Otkritie’s chief executive since January, told the Financial Times that Russia’s central bank may face further costs in addition to the Rbs626bn ($10bn) spent so far on recapitalising Otkritie and B&N and the Rbs1.1tn it is paying to ringfence their bad assets in a “bad bank”. –CB Report

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A BEIJING

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eople in the bordering areas are getting their vehicle tanks Qilled with petrol and diesel in Nepal because of lower prices compared to Bihar. The high prices in the state have also led to cross-border smuggling of petroleum products from Nepal.

Mahesh Agrawal, a senior member of Chamber of Commerce at Raxaul, told this newspaper that petrol was Rs83.57 and diesel Rs73.71 per litre in town compared to Rs66 and Rs55 (Indian currency) per litre respectively in Nepal.

Sushil Bhattarai, deputy managing director of Nepal Oil Corporation (NOC) admitted the alarming rise in smuggling of petroleum products from Nepal to the bordering districts in Bihar. “Fuel smuggling to India has been so high that it can pose a big

foxconn unit to raise $4.2 billion in china Ipo

challenge for NOC in maintaining normal supply in Nepal,” Sushil said. People of the bordering districts in Bihar also admit the manifold increase in smuggling of petroleum products from Nepal since prices started soaring last week. Sources said a number of unemployed persons have started

smuggling fuel and earning Rs500 to Rs1,000 per day. Ajay Patel, owner of a petrol pump at Bhelwa near Raxaul said: “Petrol pump dealers in East Champaran are facing a tough time as our sales have gone down drastically in the last one month due to fuel smuggling from Nepal.

Saudi Arabia’s safety-net spending wipes out new tax gains

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audi Arabia’s efforts to ease the burden on ordinary citizens from its promised economic overhaul are taking a toll on its balance sheet. Saudi Arabia’s efforts to ease the burden on ordinary citizens from its promised economic overhaul are taking a toll on its balance sheet. The increase in the kingdom’s spending on wages and social beneQits during the Qirst quarter exceeded what it accrued through higher

taxes and lower subsidies, driving the deQicit higher to 34.3 billion riyals ($9.2 billion), from 26.2 billion riyals a year ago, according to a quarterly Finance Ministry report.

Officials are trying to ease the economy’s addiction to oil exports by finding alternate revenue sources, while shrinking the deficit by reshaping one of the world’s most generous welfare schemes. –CB Report

unit of electronics manufacturing giant Foxconn said it will launch an initial public offering in China aimed at raising $4.2 billion, in the biggest mainland debut in nearly three years.

Taiwan’s Foxconn Industrial Internet, which makes electronic devices, cloud service equipment and industrial robots, will float 10 percent of its total shares, according to a prospectus filed with the Shanghai stock exchange.

Taipei-based Foxconn itself, which is also known as Hon Hai Precision Industry Co, is the world’s largest electronics contract manufacturer, a major supplier of components and assembler of products by international brands such as Apple and Sony.

Foxconn Industrial Internet will issue 1.97 billion new shares at 13.77 yuan per share to raise 27.1 billion yuan ($4.2 billion).

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The IPO would be the biggest in mainland China since a market crash in 2015 and one of the largest ever for the country’s stock exchanges. Foxconn said it will use the funds raised to upgrade its smart manufacturing, build internet platforms to connect factories and invest in cloud computing and fifth-generation communication technologies in its mainland factories. The IPO will be the largest in mainland China since June 2015, when Guotai Junan Securities raised more than $4.8 billion. After that, a prolonged bout of Chinese stock market turbulence, which saw the key Shanghai index tumble nearly 40 percent in a little more than two months, put a chill on big-ticket listings. The IPO comes as Beijing is pushing to attract more listings on mainland markets by domestic Chinese technology companies.

Analysts say that push is part of broader plans to become a global tech leader.

Iran, Iraq Start oil Swap ran’s ministry of petroleum announced that road tankers carrying oil from Iraq’s Northern city of Kirkuk had crossed the Iranian border and were already delivering oil to reserves in the Western Province of Ilam.

“By setting up relevant facilities and a pumping house, Iraqi’s Kirkuk crude oil will be pumped from Darresh Shahr to Tang Fanni and then to Kermanshah, Shazand, Tehran and Tabriz reQineries,” Managing Director of Iranian Oil Pipelines and Telecommunications Company (IOPTC) Abbasali Jafarinasab said.

Under the swap deal inked be-

tween Iran and Iraq, Iraqi crude oil will be transported by tanker trucks to Iran to supply a part of feedstock of the reQineries.

The swap deal between Iran and Iraq was agreed at the end of 2017, under which Iraq is about to truck 60,000 barrels per day (bpd) of crude oil to Iran. Iraq would cover all transport costs. Iran will accordingly deliver equal volumes with the same quality to Iraq’s clients through its Kharg terminal in the Persian Gulf. The project is expected to upend Iraq’s oil export route from Kirkuk via Turkey and the Mediterranean. –CB Report

global electric car sales up over 50 percent in 2017

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BEIJING

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lectric car sales around the world rose by 54 percent in 2017, taking global stock across the threemillion threshold, the International Energy Agency said. In China, the world’s biggest market for electric vehicles, sales also grew by about half but their

market share remained small at 2.2 percent. In Norway electric vehicles have by far the world’s highest market share, but even there it is still only 6.4 percent, according to the IEA. Nonetheless, the Paris-based agency was optimistic about the sector’s prospects.

“Supportive policies and cost reductions are likely to lead to signiQicant growth in the market uptake of (electric vehicles) in the outlook period to

2030,” the report said. Should policymakers honour their current commitments to the environment, “the number of electric light-duty vehicles on the road (would reach) 125 million by 2030,” it added. And should policy ambitions develop further, that number could become as high as 220 million in 2030, it said. But the IEA said that in order for the cars of the future to overtake their petrol and diesel-powered

competitors, governments will have to take the lead. “The main markets by volume (China) and sales share (Norway) have the strongest policy push,” the IEA said. “Looking ahead, the strongest current policy signals emanate from electric car mandates in China and California, as well as the European Union’s recent proposal on carbon dioxide (CO2) emissions standards for 2030.

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Govt allows import of food items only at Karachi Port ISLAMABAD: The government has decided to import of various food items at only Karachi sea port for inspection by plant and protection department.

The Economic Coordination Committee (ECC) of the Cabinet considered issues in the applicability of SRO. 1067(I)/2017 due to limited human resource and capacity constraints of Department of Plant Protection (DPP). The ECC decided that the import of various food items as listed in SRO. 1067(I)/2017 would only be allowed at Karachi Sea Port, and land border posts at Sost, Chaman, Torkham, Taftan, Wagha, Peshawar and Quetta till the required human resource with necessary technical capacity is raised by the DPP for handling inspection work at other ports of the country.

Shipping activity at port qasim ive ships, Sea Span Oceania,Mediterranean Bridge, Darya Mahyesh, Sino Energy-8 and Gloriouscarrying Containers, Coal, Palm Oil and Diesel Oil were arrangedberthing at Qasim International Container Terminal, PakistanInternational Bulk Terminal, Liquid Cargo Terminal and FOTCO OilTerminal respectively. Meanwhile two more ships, APL Miami and Gas Amazo carryingContainers and LPG also arrived at outer anchorage of Port Qasimduring last 24 hours. A total of eleven ships namely, Sea Span Oceania, Mediterranean,Brideg, Inlaco Bright, Reem-5, Thassos, Darya Mahyesh, Sea Lavender,Maran Gas Mystres, Hyde Park, Sino Energy-8 and Glorious are currently occupying PQA berths to load/offload Containers, Wheat, Soya BeanSeeds, Coal, Phosphoric Acid LNG, Palm oil and Diesel oil respectively. Cargo

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Ports & Shipping

Brisbane launches a logistics blockchain solution T

BRISBANE

nansha port area to become new global shipping center he Nansha Pilot Free Trade Zone will become a new international shipping hub, linking Guangzhou to more countries and regions in the years to come. Guangzhou has been a major commercial city and a trading port in China since ancient times and Nansha, located at the estuary of the Pearl River, should play an even bigger part in the city’s opening up and foreign trade, said Pan Yuzhang, deputy director of the Nansha Pilot Free Trade Zone’s administrative committee. “To this end, Nansha port is negotiating to open more global ocean routes in the coming years while expansion of the port is well underway,” Pan said, without revealing specific details. Meanwhile, two luxury cruiser docks, with a capacity of more than 100,000 metric tons each, will be completed and start service in the first half of 2019, with an aim to build Nansha into one of the major ocean cruise centers in Asia, Pan added. –CB Report

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he Port of Brisbane joins the global major ports in the current trend of implementing blockchain-based solutions to connect supply chain participants, with the view to increase international trade efQiciency. The new tool, called “Trade Community System” was developed in collaboration by PwC Australia, the Australian Chamber of Commerce and Industry (ACCI) and the Port of Brisbane, the port’s press service informs.

Roy Cummins, Port of Brisbane CEO, said yesterday at the launch of the Trade Community System proof of concept in Brisbane: “To drive new efQiciency gains, industry leaders need to develop mechanisms which facilitate the integration and interoperability of commercial operators across the supply chain and logistics sector.” The blockchain platform is designed to improve productivity and reduce costs and the complexity of international trade by eliminating human errors and duplication of data inputs

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through digitization, as all recorded information is shared in real time and in an encrypted form through a decentralized ledger rather than kept in Qiles of individual companies involved in the supply chain.

The Trade Community System will address a number of points and recommendations from the recently released Inquiry into National Freight and Supply Chain Priorities Report. PwC partner, Ben Lannan said: “The port is the Qirst and last point of domestic contact in the international supply chain, and is the

primary point at which all signiQicant supply chain participants converge. To grow Australia’s trade competitiveness, we need to look beyond our ports. The Trade Community System proof of concept is the Qirst stage in building an innovative end-to-end supply chain that will digitise the Qlow of trading information, improve connectivity for supply chain participants, reduce friction for business and reduce supply chain costs, providing unprecedented productivity gains for Australia’s international businesses.”

china lowers tariffs, rejects uS trade war escalation throughput during last 24 hours stood at 167,653tonnes, comprising 136,547 tonnes import cargo and 31,106 tonnesexport cargo inclusive of containerized cargo carried in 2,750containers (TEUs), (1,236 TEUs imports and 1,514 TEUs exports) washandled at the port.

Gas carrier, Maran Gas Mystres sailed out to sea on Tuesdaymorning, while four more ships, Sea Span Oceania, MediterraneanBridge, Sea Lavender and Inlaco Bright are expected to sail onTuesday afternoon. Five ships, APL Miami, Maersk Denver, Manuela Botigliri, GasAmazon and YM Miranda carrying Containers, Palm oil LPG andChemicals are expected to take berths at QICT, LCT, FVTL andFOTCO respectively on Monday. –CB Report

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hina said it wanted to avoid an escalation of trade tensions with the United States, as the two sides held new talks and Beijing decided to lower some tariffs.

The overture came two days after the White House said its planned trade sanctions against China were still in the works despite the announcement of a truce following a previous round of talks earlier in May. China has threatened to hit back with tit-for-tat tariffs on tens of billions of dollars in US goods.

A 50-strong US delegation arrived in Beijing on Wednesday for follow-up meetings, Chinese commerce ministry spokesman Gao Feng said, without proving more details. “We hope that China and US economic and trade cooperation can

beneQit people in both countries, and we are not willing to see trade frictions escalate,” Gao told a regular press brieQing. The delegation is laying the groundwork for a weekend visit by US Commerce Secretary Wilbur Ross. The Trump administration said Tuesday that US sanctions announced in March including restrictions on Chinese investment, export controls and 25 percent tariffs on as much as $50 billion in Chidevelopment.

Gao slammed the proposal, saying US measures to implement investment restrictions and export controls against China “do not conform with the basic principles and spirits of the WTO (World Trade Organization)”. “China will carefully evaluate the US measures and relevant impact and retain its rights to adopt relative measures.”Separately, the Chinese government announced in a statement late Wednesday that

it would further cut import tariffs on daily consumer goods from July 1. The average tariff on clothing, shoes and hats, kitchenware, and sports and Qitness supplies will be reduced from 15.9 percent to 7.1 percent. The rate for home appliances such as washing machines and refrigerators will be lowered from 20.5 percent to eight percent.

‘No forced tech transfers’ -Gao said China will also publish a “negative list” of foreign investment by June 30 to ease restrictions in Qields including energy, resources, infrastructure and transportation. A negative list includes all the industries with foreign investment restrictions.

Beijing previously said it would relax restrictions on foreign investment in automobiles, shipbuilding and aircraft Qirms. At a meeting Wednesday chaired by Premier Li Keqiang, the State Council or cabinet also decided that China would widen

market access through more foreign investor-friendly measures, according to the ofQicial Xinhua news agency. “We should raise our innovation capacity in the new round of opening up and see that all intellectual property be fully protected,” Li said. “No forced technology transfer will ever be imposed on foreign-invested enterprises and IPR (intellectual property rights) infringements will be penalised to the full extent of the law.”Donald Trump has accused China of forcing US Qirms to hand over their industrial secrets to Chinese Qirms in order to do business in the country, a charge that Beijing has rejected. In other measures announced by Xinhua, overseas traders will be encouraged to participate in crude oil and iron ore futures trading.

Severe measures will be taken to punish infringements, counterfeiting, commercial secret violators and trademark squatters.

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FIA lauded over busting gang operating fake EOBI office Friday June 8, 2018

Business

GUJRANWALA: The Gujranwala Employees Old-Age Benefits Institution (EOBI) Regional Head Kashif Zia Khan has presented a souvenir of appreciation to the Federal Investigation Agency (FIA) deputy director Mufhakar Adeel for being a gentleman of complete integrity and professionalism.

Reportedly, following the directives of EOBI Chairman Khaqan Murtaza, Kashif Zia filed a complaint with FIA against an alleged illegal EOBI office being operated at Nursery Chowk on Dastaghir Road in Gujranwala.

Sc rejects pmL-n’s petition filed against nAB ISLAMABAD

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he Supreme Court on rejected a petition Qiled by Pakistan Muslim League – Nawaz (PML-N) seeking the removal of National Accountability Bureau (NAB) chairman Justice (retd) Javed Iqbal from his post.

The decision came during a brief in-chamber session conducted by Chief Justice of Pakistan Justice Mian Saqib Nisar over the petition filed by PML-N leader Noor Ahmed Awan. Awan had filed a constitutional petition against the NAB chairman in the Supreme Court on May 12.

nAB summons Shehbaz again on 25th LAHORE

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ML-N President Shehbaz Sharif on Monday failed to appear before the national anti-graft body investigating corruption cases involving public sector companies.

However, Ameer Afzal, a representative of the chief minister, appeared on his behalf before NAB authorities at bureau’s Lahore office. A source familiar with the development said the representative of the CM submitted written replies to some questions.

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The petition stated that the accountability bureau had released a press statement on May 8 which

stated that former prime minister Nawaz Sharif was involved in transferring money to India.

On May 8, NAB had issued a press release stating that will probe alleged laundering of $4.9 billion to India by Nawaz and others.

The press release mentioned that the information was taken from the Migration and Remittance Book 2016. However, the State Bank of Pakistan had rejected this information on September 21, 2016, the petition noted. The petition further stated that the sole purpose of the press release was to malign Nawaz Sharif. The press release has raised questions pertaining to institute’s integrity, it mentioned. Orders should be given to investigating the move to issue the press release, the petition said, adding that the NAB chairman should also submit an unconditional apology.

Lng terminal contract: nAB launches inquiry against nawaz, Abbasi T

ISLAMABAD

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he National Accountability Board (NAB) has launched inquiry against the disqualiQied prime minister Nawaz Sharif, former premier Shahid Khaqan Abbasi and others in alleged illegal award of LNG terminal contract for 15 years to their favourite company, causing loss of billions of rupees to the national exchequer.

The decision was taken in the NAB Executive Board Meeting

(EBM) which was chaired by Chairman Justice (r) Javed Iqbal.

The anti-corruption watchdog also approved inquiries and investigations against outgoing Punjab chief minister Shehbaz Sharif and Sindh ex-CM Syed Qaim Ali Shah and other politicians as well as government ofQicials in different corruption cases. The EBM authorised investigation against former CM Qaim Ali Shah, former Sindh Culture and Tourism secretary and others in giving contracts against the rules. They allegedly caused a loss of 127 million rupees to the national kitty.

The meeting approved inquiry against Shehbaz Sharif, relevant Punjab secretaries, MPA from Chiniot and the administration of Ramzan Sugar Mills Chiniot in case of misuse of power, which allegedly caused a huge loss to the national exchequer. The EBM also approved to file corruption reference against former Karachi Port Trust chairman Vice Admiral (r) Ahmad Hayat and former KPT GM Brigadier (r) Syed Jamshed Zaidi.

They are accused of illegal extension in contract causing Rs21 billion loss.

Dr Shamshad for taking measures to avert fATf sanctions ISLAMABAD

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ederal Minister for Finance and Revenue Dr Shamshad Akhtar has chaired a meeting here at the Ministry of Finance to review different Financial Action Task Force’s (FATF) related issues. The officials of finance ministry and other departments briefed the interim minister about the challenges posed by the FATF’s decision to place Pakistan on a grey list of countries that financially support terrorism. Pakistan is required to present its Action Plan to Asia Pacific Group next week before submitting it for the FATF Plenary, scheduled to meet in the third week of June in Paris. Dr Akhtar has directed the ministry of finance to take the measures to avert possible tough sanctions in June this year. Pakistan had recently submitted its action plan with the FATF’s Asia Pacific Group in a meeting held in Bangkok. However, the FATF’s Asia Pacific Group had expressed its dissatisfaction over the plan and directed to take concrete steps. It also asked Pakistan to put a new comprehensive action plan within two weeks, alerting that the country might end up on the blacklist of the countries’ failing to prevent terror financing.

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over Rs494m released for revenue division projects KARACHI

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he government has so far released Rs494.994 million for various ongoing and new projects of revenue division under the Public Sector Development Programme (PSDP) for the current Qiscal year (2017-18).

The government in its federal PSDP had earmarked Rs790.100

million for the revenue division projects, with foreign exchange component of Rs105 million, reports said. The government released the total amount of Rs148 million for the establishment of inland revenue ofQices in the country, earmarked for the project in the federal PSDP for the current Qiscal year.

An amount of Rs140.994 million has been released for development of Integrated Transit Trade Management (ITTMS) under ADB Re-

gional Improving Border Service Project. The total cost of this project has been estimated at Rs 31,626 million which is being developed to modernize facilities at border crossings at Torkham, Chaman and Wagah. The government has earmarked an amount of Rs255.375 million for the project this year with foreign exchange component of Rs100 million. The government also released Rs64 million for construction of Regional Tax Office

(RTO) Islamabad out of its total allocations of Rs94 million during the current PSDP. An amount of Rs32.5 million have been released for project for Security Improvement in Karachi Port and Port Qasim for Installation of three fixed and one Mobile Scanner with JICA assistance. The government has earmarked an amount of Rs55 million for the project with foreign exchange component of Rs5 million in the PSDP2017-18, report adds.

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ICCI concerned over 50pc rise in external debt ISLAMABAD: The Islamabad Chamber of Commerce & Industry has expressed great concerns over the rising external debt and liabilities of the country.

The country’s external debt and liabilities have soared to a record level of $91.8 billion by the end of March 2018 as per SBP’s latest report showing an increase of over 50% during the last four years and nine months. The ICCI called upon the government to take urgent measures to reduce the country’s dependence on rising foreign debt as it would create more problems for the economy.

ICCI President Sheikh Amir Waheedsaid that the previous government had resorted to heavy borrowing to meet the current expenditures and run the affairs of the country. It was expected that the current government would curb this unhealthy trend by devising a new strategy.

pmL-n govt failed to honour refund commitment: fpccI

Friday June 8, 2018

Chambers

cDA & mcI asked to focus on improving infrastructure in markets

LAHORE

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he Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has said the PML-N government failed to honour its commitment about releasing stuck-up refunds to the business community leaving them in a quandary. Refunds worth trillions of rupees are held by the government since years which are not being released despite repeated promises by the top government functionaries, said Ghazanfar Bilour, president of the FPCCI. He said that slow processing of refunds has surfaced as a major issue confronting taxpayers of the country which is not acceptable, he said. FBR prefers to

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meet their tax collection targets to please the IMF instead of processing refunds of taxpayers that resulted in creating severe liquidity crunch for the businessmen compromising their ability to do business, he added. He said that exporters are running from pillar to post for ensuring the release of funds against the Refund Payment Orders already issued them but it seems that government is not concerned about the plight of the business community. Ghazanfar said that the liquidity crunch is playing havoc with the viability of the industrial sector with the textile industry taking a major blow. The textile exports have grown in double-digit after the announcement of this PM package but the commitments made under that package remained unmet discouraging the business community and putting the credibility of the government at stake.

ISLAMABAD

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uhammad Naveed Malik, Senior Vice President, Islamabad Chamber of Commerce & Industry said that CDA Board has approved budget of Rs.40.5 billion for 2018-19 and urged that it should focus on better development of markets by utilizing the development budget.

He stressed that CDA and MCI should take urgent measures to improve basic infrastructure in markets in order to facilitate the growth of business activities. He was addressing local traders after inaugurating a Fitness Center in Jinnah Super Market, Islamabad.

Abdul Rauf Alam, Zafar Bakhtawari, Muhammad Ejaz Abbasi, former Presidents ICCI, Khalid Chaudhry, Raja Safeer, Malik Najeeb and others were also present at the occasion.

Muhammad Naveed Malik said that CDA has not done any development work in markets for the last many years due to which their condition has deteriorated a lot.

He said the markets in the federal capital urgently needed repair of roads & footpaths, provision of filtration plants, public toilets, streetlights and other facilities. He said after the establishment of local government in Islamabad, MCI was responsible for repair and maintenance works in markets, but the issue of distribution of

work between CDA and MCI was still not fully resolved due to which the development works in markets were suffering.

He said CDA has earmarked about Rs.21.7 billion for development projects which was 54 percent of its total budget. He emphasized that CDA should enhance development budget up to at least

Traders ask govt to cut taxes on real estate LAHORE

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he Islamabad Chamber of Commerce and Industry (ICCI) on Sunday called upon the caretaker government to reduce the taxes on real estate sector.

“The real estate sector is playing important role in the economic development of the country but imposition of heavy taxes has badly affected its business activities,” Acting President ICCI Muhammad Naveed Malik said while talking to a delegation of Islamabad Estate Agents Association led by Chaudhry Zahid RaQique who visited ICCI here.

He stressed that the caretaker government should consider reducing tax rates on this sector to facilitate the growth of economy.

He said the outgoing Prime Min-

ister had announced to reduce tax rate on the purchase of property to only one percent along with abolition of DC rate and FBR rates, but the same was not implemented as yet. He stressed that all other taxes should be abolished on the purchase of property including CVT and stamp duty and only one percent tax rate should be imposed.

He said that capital gain tax slabs on purchase of property should be removed and Qive percent Qlat CGT should be introduced. He said the period of gain tax should also be reduced from three years to two years.

He urged that provinces should also abolish CVT and stamp duty on purchase of property and impose only one percent tax rate. Nisar Mirza vice president ICCI assured that the chamber would fully cooperate with Islamabad Estate Agents Association in resolving key issues of its mem-

bers. Highlighting the major issues of real estate sector, Islamabad Estate Agents Association General Secretary Chaudhry Zahid RaQique said that real estate should be given the status of industry to facilitate its better growth.

He said high tax rates on real estate sector have caused slump in property business and urged that tax rates should be revised downward.

He said government should double or triple tax rate for non-Qilers and allow them to purchase property of Rs.5 million and above. He said Overseas Pakistanis should be considered as Qilers because they were Qiling returns in their host countries. He said government should legalize two percent service charges of real estate agents as they were paying services tax in addition to income tax and it was difQicult to determine services tax without giving legal cover to two percent service charges.

60 percent of its total budget to accelerate the pace of development works in markets and the city. He said that CDA had started some sectors many years ago which were not completed as yet.

He demanded that CDA should focus on urgent development of all pending sectors for the benefit of purchasers and the investors.

Economic strength lifts confidence in uAE onfidence improved in the UAE in the first quarter of 2018 as economic buoyancy across the Middle East rebounded strongly to its highest level since second quarter 2015, professional accountants said. Confidence is at a fairly elevated level by recent standards, according to the latest Global Economic Conditions Survey from the Association of Chartered Certified Accountants (ACCA) and the Institute of Management Accountants. “The pick-up in confidence in the UAE is due in part to the fading impact of last year’s Opec production cuts. Other reasons include an increase in non-oil exports on the back of strong global growth, extra spending ahead of Expo 2020 Dubai and a less restrictive fiscal policy,” the survey said.

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ASF foils bid to smuggle 342gm ice heroin to Saudi Arabia ISLAMABAD: The Airport Security Force (ASF) foiled a bid to smuggle ice heroin to Saudi Arabia and arrested a passenger at New Islamabad Airport. The ASF sources said that during a search of baggage of a passenger leaving for Riyadh through a private airline flight, 342 gram ice heroin concealed in cigarette boxes was recovered. The ASF confiscated the drug, off-loaded and arrested the accused who was later handed over to Anti Narcotics Force (ANF) for further investigation.

Friday, June 8, 2018

CUSTOMS BULLETIN

Adjudication-II issues final notices to two defaulter companies KARACHI wAQAR AhmED AnSARI www.customsbulletin.com

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ustoms Adjudication-II has served Qinal notices to two defaulter companies named M/s Ohad Leather Tendery & Export, Karachi and M/s RaQi Ullah Chemicals Gharoo.

Sources told Customs Today that M/s Ohad Leather Tendery & Export was allegedly involved in tax evasion. The company imported raw material (used in leather items manufacturing) from Kuala Lampur (Malaysia) on December 12, 2017.

The consignment was cleared by Examiner Allah Baksh and used the wrong PCT heading.

After a careful investigation, the Customs Adjudication-II issued the Qinal notice to the company on June 4, 2018. According to the notice, M/s Ohad Leather Tendery & Export was Qined Rs 2.25 million which is payable within 14 days.

Source said that another company M/s RaQi Ullah Chemicals, Gharoo got cleared a consignment of home used chemicals and chemicals used in crop on February 16, 2017 and evaded tax amount of Rs 5.48 million. After the investigation, the Customs Adjudication-II served a

show-cause notice to the company on April 26, 2018 but defaulter com-

pany failed to clear the outstanding dues. The collector Customs Adjudi-

cation-II issued a Qinal notice to the company on June 4, 2018, and or-

dered to pay Qine Rs5.48 million within fourteen days.

fBR issues over Rs100b refunds, collects Rs3,274b in 11 months ISLAMABAD

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ederal Board of Revenue has issued further refunds of Rs 31.3 billion to take the total amount of refunds issued during the year to more than Rs 100 billion in Qirst 11 months as against Rs 54 billion issued during the entire 12 months of the previous year.

Meanwhile, Federal Board of

Revenue during the Qirst 11 months of the current Qinancial year has also recorded a provisional net revenue collection of over Rs3,274 billion as against Rs2,854 billion collected during the same period of the previous Qiscal year, excluding collection on account of book adjustments which depicts an increase of around 15%. The provisional collection for the month of May 2018 is Rs351 billion excluding collection on account of book adjustments. The provisional collection for May 2018 stood close to Rs350 billion against Rs343 billion col-

lected in the corresponding month of previous Qiscal year.

The FBR has recorded a nominal increase of Rs7 billion or 2% over the revenue collected in May 2017.

However, the FBR is struggling to achieve the revised tax collection target during outgoing Qiscal year despite it would generate additional revenue due to enforcement of new taxation measures of next year before June. The FBR would have to collect Rs661 billion only in one month to achieve the revised target during outgoing Qiscal year. The federal government had already revised the tax collection target of FBR to

Rs3,935 billion for the outgoing Qiscal year from the Rs4,013. However, the FBR believes that it would achieve the revised target. “The revenue collection trend during the Qirst eleven months of the Qinancial year augurs well for the efforts of FBR towards achievement of the assigned revised annual revenue target,” the FBR stated in a statement. Over a period, the FBR’s reliance on indirect taxes, particularly on customs duties, is on rise. Despite downward revising total annual target, the FBR has instead further increased the customs duties collection target to Rs600 billion for Qiscal year

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2017-18. The upward revised custom duties target will be equal to 15.2% of the new annual target of this Qiscal year. This at one time used to be less than 10%. For the Qiscal year 2018-19, the government has set the customs duties collection target at Rs735 billion, which will be equal to 16.5% of the next year’s target of Rs4.435 trillion. Meanwhile, the additional revenue of around Rs25 billion is expected to be generated during outgoing Qiscal year due to the enforcement of new rates of federal excise duty and customs duty from the last week of the current month.