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ollowing the previous years’ practice, the Federal Board of Revenue (FBR) is carrying forward the process of finalization of budgetary proposals in a well organized manner. Every year, before announcement of the federal budget, a compre-
hensive budget exercise is carried out by the FBR, wherein budgetary proposals are called from the trade bodies, chambers of commerce and industry from across the country and the field formations of the FBR. The same are thoroughly scrutinized, meetings are held with trade bodies representatives, proposals are consolidated and forwarded to the federal cabinet during the budget for approval of the Parliament as Finance Bill.
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A well informed source at FBR told Customs Today that FBR had dedicated specialized wings for this task, which addressed the issue of anomalies in fiscal laws by proposing amendments in the Finance Bill. Similarly for removal of difficulties in the administration of fiscal laws, FBR issues administrative guidelines to its field formations wherever intervention is required in smooth administration of tax laws.
DG Valuation revises customs value of networking cables
IHC adjourns hearing of tax matter filed by M/s Werrick Pharmaceutical
No question on inward remittance: State Bank of Pakistan
It is high time to say no to IMF; More tax means no more loans: Ali Taj
BBIA surpasses assigned target by Rs03.59m during eight months
TheDGValuationrevisedthecustomsvalue ofnetworkingcablesthroughValuation | See pAge 02 |
TheIslamabadHighCourt(IHC)datedin officethehearingofataxmatterfiled | See pAge 03 |
TheSBP,AshrafWathrasaidthattherewasno questiontobeaskedonremittanceinflows | See pAge 04 |
Assistant Commissioner Inland Revenue Zone VI, CRTOAli Taj, has said It | See pAge 14 |
Customs Station BBIA Islamabad exceeded assigned target during eight months | See pAge 16 |
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Four FBR Members transferred Wednesday, March 29, 2017
National
ISLAMABAD: Federal Board of Revenue has transferred/posted four Inland Revenue Service officers of BS 21-22 with immediate effect and until further orders. Tasneem Rehman (BS-22) has been transferred from the post of Member and posted as Member, Broadening of Tax Base (BTB), Islamabad. Rukhsana Yasmin (BS-22) has been transferred from the post of Member Training, Stationed at Lahore and posted as Member (Training) FBR stationed at Islamabad. Fareena Mazhar (BS-21) has been transferred from the post of Member, Islamabad and posted as Director General (Enforcement), Islamabad.
Dg Valuation revises customs value of networking cables
ISLAMABAD
KARACHI
nAeeM uLLAH tARiQ
wAQAR AHMeD AnSARi
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single bench of the Customs Appellate Tribunal has directed counsels of the Federal Board of Revenue to attend the hearing of cases at the tribunal. A single bench of the Customs Appellate Tribunal comprising Member, Syed Muhammad Anwar, remarked this while hearing the cases filed M/s Lucky Enterprises and Haq Nawaz. The bench also issued similar directives to the parties while hearing the same cases lastly. Both the cases were involving field offices of the Federal Board of Revenue (FBR). Syed Muhammad Anwar heard the cases and issued directives to the parties to conclude their arguments. The bench was hearing M/s Lucky Enterprises and Haq Nawaz’s tax matters. Both of these cases had been filed during 2016. The cases were still pending with the tribunal. M/s Lucky Enterprises had filed the case against MCC. It had challenged a customs duty assessment sustained by the adjudication. Haq Nawaz had filed cases regarding release of vehicles which were seized by customs authorities amid attempt to smuggling various items.
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he Directorate General of Customs Valuation revised the customs value of networking cables through Valuation Ruling No 1085/2017 under Section 25A of the Customs Act, 1969. According to details, customs values of networking cables were determined under Section 25A of the Customs Act, 1969, vide Valuation Ruling. No. 643/2014, dated 07-032014. The Valuation Ruling required revision in line with the prevailing prices in the international market. The Directorate General initiated an exercise for determination of customs values of networking cables. Sources said that a meeting with stakeholders was held on 01-032017. Importers were 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 and 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 passed on to the local buyers.
customs Appellate tribunal directs fBR counsels to pursue hearing of cases
However, no documents were submitted in this Directorate General on or even before the said scheduled meetings. During the course of the meeting, the stakeholders claimed that the values of raw material of the networking cables have actually reduced in the international market as compared to the values determined in the existing valuation ruling, therefore the values needed downward revi-
sion accordingly. Valuation methods given in Section 25 of the Customs Act, 1969 were followed to arrive at customs values of networking cables. Transaction value method provided in Section 25 (1) 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. Thereafter, market enquiry as envisaged under section 25(7) of the Customs Act, 1969, was conducted. For the purpose, different markets were surveyed repeatedly.
Anf seizes 757kg drugs in 17 operations A
RAWALPINDI
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nti-Narcotics Force (ANF) has recovered 757 kilogram drugs and 4.5 kg prohibited chemical, worth Rs 840 million during 17 countrywide operations. As per the details in the recovered drugs included 753kg Hashish, 2.4kg Opium, 1.7kg Heroin and 4.5kg Acetic Anhydride. Some 21 accused, including a woman, involved
in the narcotics smuggling were also arrested. According to ANF spokesman, ANF Quetta on pursuance of information intercepted a Toyota pick-up at Mand-Turbat Road, Tehsil and District Kech. Search of the vehicle led to seizure of 660 kg Hashish which was concealed in improvised cavities of the vehicle. ANF Rawalpindi arrested a lady drug peddler identiRied as Farah from Dhoke Elahi Bukish, resident of Rawalpindi along with 430 grams
Heroin. In another operation, ANF Rawalpindi arrested Abdul Malik and Zahid Mehmood, both r/o of Attock, along with 1.1kg Heroin. They were arrested near Shakardara Phatak, Jand-Basal Road, Attock. Yet another operation conducted by ANF Rawalpindi resulted in arrest of a local drug peddler identiRied as Waheed Khan r/o Attock, recovering 1.2 kg Hashish from his personal possession. He was arrested at Shaheen Chowk, JandBasal Road, Attock.
ANF Lahore in an information based operation carried out at Allah Hoo Chowk, Johar Town, Lahore intercepted a car and seized 30 kg Hashish concealed in secret cavities of the car. An individual on board identiRied as Faisal Ahmed r/o Quetta was also arrested. In another operation, ANF Lahore arrested a local drug peddler namely Muhammad Irfan r/o Sialkot and recovered 480 gram Hashish. He was apprehended while riding on a motorcycle near Gourmet Bakers, Uggoki,
Wazirabad Road, Sialkot. The ANF Lahore in another operation intercepted a parcel at an ofRice of Courier Service Company located at Gulberg-II, M.M Alam Road, Lahore and recovered 140 grams Heroin. In fourth operation, ANF Lahore arrested Shahid r/o Khanewal and recovered 1.8 kg Hashish. In Rifth operation, ANF Lahore raided at Kacha Nisbat Road, Lahore and arrested a drug supplier namely Muhammad Nasir r/o Lahore along with 8.4kg.
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Customs Intelligence seizes non duty paid goods FAISALABAD: Directorate of Customs Intelligence and Investigation (I&I) team has seized foreign origin goods worth Rs17,00,000 involving customs duty and taxes amounting to Rs9,68,320 during a crackdown here. Sources told Customs Today, that Deputy Director Riaz Hussain received information about some smuggling attempts. He formed a customs team comprising Superintendent Zahid Raza Bukhari, Muhammad Ramzan Muhammad Siddique, Muhammad Saleem and sepoys Liaqat Ali, Mussadaq Ahmed, Israr Ahmed, Mukhtar Ahmed and Havaldar Muhammad Iqbal.
Addl. collector Beelam issues notice to alleged vehicle smuggler
Wednesday March 29, 2017
National
iHc adjourns hearing of tax matter filed by M/s werrick pharmaceutical
FAISALABAD
iQRA SHeHZADi
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ustoms Adjudication Additional Collector Beelam-ur-Ramzan has issued a show cause notice to suspect in a non-duty paid used Toyota Surf case involving Rs1.025million. Faisalabad Customs Intelligence and Investigation, following information, impounded the Toyota Surf with Registration No. LWQ-918 near Gutt Wala Toll plaza. The team asked the driver of the vehicle named Muhammad Ahsan to show documents regarding the legal import of the vehicle but he could not do the same. So the officials impounded the vehicle under customs bylaws and forwarded the case to Customs Adjudication for further legal action.
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fBR serves show cause notice on M/s chawala Rice Mill KARACHI
MuBeen HuSSAin
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he Federal Board of Revenue (FBR) has served a show cause notice on the the management of M/s Chawala Rice Mill against illegal occupation of the land. According to the details, the Deputy Director (HQs) Estate Cell/Anti Encroachment Wing IRS-FBR Sindh Asif Ali Abro, under section 5(1), has served the notice to take necessary legal steps relating to recovery of possession / vacation or evocation from occupied building to Chawala Rice Mill situated at Hawks Bay Road, Hawks Bay Town, Karachi. The show cause served to the Chawala Rice Mill stated that, the mill situated at hundreds of acres, was acquired by the mills in collusion with certain elements without any lawful authority/lease from Federal Board Revenue (FBR), The land is owned by the FBR.
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he Islamabad High Court (IHC) on Tuesday dated in ofRice the hearing of a tax matter Riled by M/s Werrick Pharmaceutical with directives to submit record of the case by next date of hearing. An IHC bench comprising Justice Aamer Farooq was hearing the matter Riled by M/s Werrick Pharmaceutical in 2016. The company had challenged a recovery claim issued by the Large Taxpayers Unit of the Federal Board of Revenue (FBR), Islamabad. The company had prayed the court that the FBR ofRice had issued a recovery notice which did not hold lawful grounds and it should be declared illegal and without any lawful authority and an interim stay may be granted against recovery proceedings. M/s Werrick Pharmaceutical asked the court to decide on relief which it deemed appropriate in this regard. It also stated that a due legal course was not followed by the department in issuing the order. The company had also prayed the court to decide the case early as the appellant had to bear Rinancial complications after the case. M/s Werrick Pharmaceutical also mentioned that departmental obligations were not met amid processing the notice of recovery demand while later the adjudication
did not addressed grievances of the appellant. The bench had also heard the case during last week and adjourned hearing on the matter after hearing brief arguments by the parties. ATIR, Federal Board of Revenue (FBR), ofRicers of LTU including Commissioner Inland Revenue, and others were made respondents in the tax reference. Meanwhile, Justice Aamer Farooq of the IHC adjourned the hearing of M/s Hasas Engineering and Construction Com-
the company had prayed the court that the fBR office had issued a recovery notice which did not hold lawful grounds and it should be declared illegal and without any lawful authority and an interim stay may be granted against recovery proceedings
Dar reviews economic reforms F
ISLAMABAD
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www.customsbulletin.com inance Minister Senator Mohammad Ishaq Dar chaired a meeting which reviewed the economic indicators as well as progress on various economic reforms. The meeting was held in the context of Article IV consultations between the Government of Pakistan and International Monetary Fund (IMF) scheduled to commence in Dubai on 28 March 28, 2017. The Finance Minister will join the
Pakistan delegation later to participate in the Rinal stage of the consultations, says a press release. The Finance Secretary briefed the meeting regarding the preparations for the week long consultations. He also provided an update on measures undertaken for strengthening the reforms process. The Finance Minister expressed the hope that the two sides would have a constructive round of discussions as had been the case during the preceding quarterly review meetings.He urged that the progress Pakistan has
achieved in the sphere of economic reforms should be fully projected during the consultations. He said that the reforms have enabled the country to achieve macro-economic stability, and the implementation of key structural reforms needs to be continued in order to foster higher, more inclusive and sustainable economic growth. It may be recalled that IMF Executive Board completed the 12th and Rinal review of an EFF programme for Pakistan last September which led to the disbursement of the Rinal tranche.
pany (Private) Limited’s tax matter. M/s Hasas Engineering and Construction Company had challenged the show cause notice issued by the Commissioner Inland Revenue of Large Taxpayer’s Unit, Islamabad. The notice was issued under the head of income tax. The company had prayed the court that the recovery notice did not hold lawful grounds and be declared illegal and an interim stay may be granted against recovery proceedings.
Dy Superintendent nizamuddin retires uhammad Nizamuddin, a Pakistan Customs Service, has retired from the government service on attaining the age of superannuation. The officer, presently posted as Deputy Superintendent at Model Customs Collectorate, Peshawar, stood retired from the government service with effect from March.
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Move to help promote Islamic Banking in Pakistan KARACHI: In a development to promote Islamic Banking and Finance in the country, a leading financial institution-Bank Alfalah, has entered into an agreement with AlHuda Centre of Islamic Banking and Economics (CIBE), an international leader in human capital development for the Islamic financial services industry. A statement here on Monday said that the MoU will act as a gateway to facilitate the promotion and development of Islamic Banking nationally and internationally in a more structured manner. It said that the partnership will entail Collaborative Advisory Services, Faculty Exchange Program, Collaborative Trainings and Seminars, and Collaborative In-House Sessions on both national and international levels.
Wednesday March 29, 2017
Business
no question on inward remittances: SBp ISLAMABAD
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he governor of State Bank of Pakistan (SBP), Ashraf Mahmood Wathra on Monday said that there was no question to be asked on remittance inRlows into Pakistan. He was addressing at a meeting with members of Karachi Chamber of Commerce and Industry (KCCI). On a question raised by Siraj Kassam Teli, Chairman, Businessmen Group (BMG) regarding amnesty scheme for whitening the money held abroad, the governor said that there was permanent incentive for inRlows into Pakistan. He said that untaxed money was
Mobile phones import decreases by 14.6pc KARACHI
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serious issue. He also pointed out that a scheme to whiten money
projects launched by federal govt to bring new era of development in Sindh
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he imposition of 100 percent cash margin requirement has started yielding results as import of mobile phones registered decline of 14.6 percent in February 2017 as compared with the previous month. The import of mobile phones recorded value of $60.02 million during February 2017 as compared with $70.17 million in January 2017, according to data released by Pakistan Bureau of Statistics (PBS). It is worth mentioning here that State Bank of Pakistan.
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held abroad introduced by Indonesia was successful due to their doc-
umentation and strong database. But Pakistan has no such database, he added. He, however, said that with the implementation of OECD agreements Pakistan would able to access information of such wealth from year 2018. Meanwhile, The State Bank of Pakistan (SBP) has clariRied the authenticity of Rs 500 Banknotes without OVI. ‘Apropos the news circulating in some sections of social media regarding authenticity of Rs 500 banknotes without OVI Rlag, it may be recalled that the State Bank had introduced new design banknotes of Rs 500 in 2006’, said a statement issued here. These banknotes carry state of the art security features, besides, change in size, design and color scheme.
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HYDERABAD
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rime Minister Muhammad Nawaz Sharif said the development projects launched by the federal government would bring a new era of development across the country, including Sindh province. He was talking to delegations of people belonging to different walks of life, who called on him during a lunch hosted by Pakistan Muslim League-Nawaz Senator Rahila Magsi here at her residence.
Nawaz Sharif said the government had initiated a number of development projects in Sindh and after their completions, the people of the province would take a sigh of relief. The delegation comprising Muttahida Qaumi Movement Pakistan legislators led by Member of the National Assembly Syed Waseem Hussain apprised the prime minister about the problems being faced by the citizens of Hyderabad and urged him to announce a special development package for the historic city. Mayor Hyderabad Syed Tayyab
Hussain also briefed the prime minister about the efforts being made by the Hyderabad Metropolitan Corporation for the city’s development and requested him to announce a special grant for the purpose. The delegations of Hyderabad Chamber of Commerce and Industry led by Ziauddin and Hyderabad Chamber of Small Traders and Small Industry led by Muhammad Amin Khatri also informed the prime minister about the issues being faced by the business community of Hyderabad.
Secp warns public of fake investment schemes ISLAMABAD
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ecurities and Exchange Commission (SECP) has warned general public about crowd funding and asked not to be misled by fraudulent activities of investment or deposit schemes launched by certain non-corporate entities. The SECP in a statement said that a page with the title of “Innovative Crowd Funding Project Pvt-Ltd Pakistan” is appearing on Facebook, explaining the concept, history and other details of crowd funding. As per the website (innovativecrowdfunding.com), it seems that the company is involved in raising funds through crowd funding. In this regard, the SECP would like to clarify that no company with the name of “Innovative Crowd Funding Project Pvt-Ltd Pakistan” is registered with it. It is further clarified that crowd funding is not allowed in Pakistan and no company can raise funds through this scheme. In view of the above, the public is hereby warned not to be misled by fraudulent activities, investments/deposit schemes launched by certain non-corporate entities or individuals through advertising in the electronic and print media, websites, emails, mobile text messages etc.
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govt to spend Rs20b on development of exports under Stpf ISLAMABAD
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he government would spend Rs. 20 billion on development of export sector over next three years under Strategic Trade Policy Framework (STPF) and to counter effects of global recession. It is a fact that overall recession in World import demand has declined our exports and major rea-
sons for decline were low commodity prices, slow down of Chinese economy and Eurozone debt crisis. Highlighting the steps taken by government to counter effects of such global recession, sources at Commerce Division on Monday said an incentive for technology up-gradation has been announced in shape of investment support of 20 % and mark-up support of 50 % upto a maximum of Rs. 1 (one) million per annum per company for import of
new plant and machinery. Prime Minister has also announced Trade Enhancement Package of Rs. 180 billion to restore competitiveness and boost exports. The salient features of the package include: Zero rating of machinery imports, Withdrawal of duty and sales tax on cotton import, Withdrawal of duty on import of MMF, Release of pending liabilities of Textile Policies and Release of pending Sales Tax Refunds.
The other initiatives inter-alia include matching grant upto a maximum of Rs. 5 (Rive) million for speciRied plant and machinery or speciRied items to improve product design and encourage innovation in SMEs and export sectors of leather, pharmaceutical and Risheries. Matching grant to facilitate branding certiRication for faster growth of SME and export sector in Pakistan’s economy through Intellectual Property Registration (including trade and service marks),
CertiRication and Accreditation. Draw-back for local taxes and levies is being given to exporters on Free on Board (FOB) values of their enhanced exports if increased by 10 % and beyond (over last year’s exports) at the rate of 4 % on increased exports. Under short-term export enhancement measures, the four product categories i.e. basmati rice, horticulture, meat and meat products, and jewellery, are being focused with parallel focus on the markets such as Iran, Afghanistan.
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Wednesday, March 29, 2017
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PESHAWAR
nADiR kHAn & iRfAn BAHADuR www.customstoday.com
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he Federal Board of Revenue (FBR) has released Rs 120 million for Integrated Transit Trade Management System to upgrade Torkham border terminal with latest facilities and better service delivery. Sources said that work on the terminal would start within 45 days and will complete in three years. The project has been named Integrated Transit Trade Management System which will be established with support of the Asian Development Bank. The project will complete in three phases and in the Rirst phase work will start on Torkham border, in second phase Chaman and Wagah border and in third phase the work will start on Angor Ada and Mohmand Agency. The contracts for the construction work have been given to the National Logistic Cell and for this purpose project director Zuber Yousafani visited Peshawar where he established a regional ofRice. The cover area of the terminal would be 54 acres which will include ofRices of NADRA, passport, FC, ANF, forest, bank, immigration, custom clearance, import and export ofRices, parking cafeteria, watch towers and warehouses. There will be also parking for Rire brigade vehicle and scanner worth million of ru-
pees. The terminal would be operational tries has also hoped for the speedy refor 24 hours and will be connected with covery of trade activities between the two WeBOC. Meawhile, The Government of important trade partners and asked for Afghanistan imports 70% of its food compensation for the traders. through Pakistan which predicts the eco- The General Secretary KPCCI termed it an nomic bow of Afghanistan towards Pak- efRicient source for improving exports istan. Zia-ul-Haq Sarhadi, Senior Viceand imports as Pakistan already shares President of the a business worth billions which implies Pakistan-Afghanistan Joint better trade activities in the near fuChamber of Commerce and ture. Industry, said while talking to Customs Today on Saturday about the losses to the economics of both countries from the closure of Torkham border. The Government of Pakistan has assorted Rines on halted cargo along the frontier which amount almost Rs2.5billion to three billion ham ($25m to $30m), he added. e tork h t d i a About 2,000 cargo containte o f fani s ” a ga Yousa d r e ers headed for Afghanistan r e e b d Zu nual consi languished in Pakistan, he he an ing is t s s e l o i r h c said, urging the Pakistani lion $5bil h i p” w s h d c n a government to waive off e e fri will r 18 various charges. trade l a r by 2 0 e n t o a i l l He further said the Torkham i l b .5 bi crossing is considered ” a Rs522 gate of friendship” while the annual bilateral trade will reach $5billion (Rs522.5 billion) by 2018. On the other side, KP Chamber of Commerce and Indus-
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eDitoRiAL
Journey towards development
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rime Minister Nawaz Sharif has expressed the hope that the country will continue to travel on the path of sustained economic development, which is also acknowledged by international financial institutions. Talking to a Chinese delegation, he pointed out some chronic challenges facing the nation such as energy crisis, terrorism and rising trade deficit. However, he hoped that his government would be able to improve security situation and will rid the country of power shortage forever. No doubt the power supply has improved to some extent during the present government tenure, but the people are still facing the brunt of load shedding, which has adversely affected not only the domestic consumers but also the industrial sector. The government is trying to generate electricity from diverse resources, but it could not start mega projects like Kalabagh Dam and other electricity generation projects due to one reasons or the other. However, a 1,320 MW coal based power project is being set up in Balochistan in collaboration with China and it is hoped it will fulfill the needs of the province to some extent. China is the latest model of economy to emulate. Both Pakistan and China have close relations and Beijing cooperation should be sought to transfer its light industries to Pakistan instead of Bangladesh. At the domestic level, a conducive business environment is imperative to attract foreign direct investments in business, tradeand energy sectors. Pakistan is a huge consumer market of 200 million people and western nations can be induced to set up industries in the country. The prime minister rightly pointed out that ChinaPakistan Economic Corridor is not only a step towards regional connectivity, but also a road for regionalization of the cherished goals of peace and prosperity. The central Asian states can be connected to the corridor through China and Afghanistan and a regional economic block will be in the best interest of all nations. The economy of Pakistan has come out of the years of slumber and all the variables are in its favour.
process of reforms must start now T
LAHORE
DR AftAB AfZAL
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he country’s bureaucracy still has the inRluence of British legacy. The successive governments tried on several occasions to change the rule of business and reform the whole bureaucratic system, but a total overhaul is still pending as it takes extra efforts to break the routine. The country needs reforms in every sector whether it is social, educational, the economic or health and policymakers have either limited powers to start the reform process or they have to look toward political leadership for advice. Since Pakistan started obtaining foreign loans, the donor
agencies have been advising the government of the time to introduce structural reforms. Reforms are indispensable for Rinancial sector which include a change in the rule of business for the taxation authorities, a modern well equipped banks system and overhauling of ministries and public sector organizations. The current priority is to create opportunities for foreign and local investment. The government should have to make rules to offer concessions to foreign investors, not only in the stock market but also in the real estate, banks and industrial sectors. The foreign investors from certain countries have already participated in various developmental projects and the China Pakistan Economic Cor-
ridor is the latest example of local attraction for big investors. However, if the government opts for reforms and takes drastic steps to contain the powers of the local authorities, it is hoped that the foreign investors will not hesitate to put their money in this country. Experts believe the government should revise its policies to promote capital formation and investment in the country. The taxation department is the main government agency which needs reforms as the foreign investors take interest only in places which offer tax incentives and their capital’s security. The local business community is long been demanding the government to withdraw super tax and suspend tax on bonus shares and retained re-
serves. The procedure to startup should also be evolved and ease of doing business also needs special attention in the current circumstances. The number and rate of taxes are very high which also needs revision. The prime minister has announced a package of Rs 180 billion to boost exports which have been declining for the last three years. However, it is yet to be seen how this money will be utilized. The imports are increasing day by day and Pakistan is facing trade deRicit of billions of dollars with various countries. The government should immediately start the reform process to resolve the issues which create hurdle in the way of development. Both business and reforms should go together.
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UAE three months away from taxation system DUBAI: Implementation of tax in the UAE is getting momentum and it is expected that the first phase will be starting from July 2017. The UAE is around just three months away from coming under taxation system. It has been stated that the tax implantation is in final stages. On one hand, the Federal National Council (FNC) three days back approved a draft legislation, the Tax Procedure Bill that serves as a framework for issuing taxrelated laws and the UAE President Shaikh Khalifa Bin Zayed Al Nahyan’s final approval is required to implement the bill. While, on the other hand, the UAE’s Ministry of Finance announced to start the awareness campaign to educate various stakeholders on the collection of value-added tax (VAT). Last year, Shaikh Khalifa had issued a decree setting up the Federal Tax Authority (FTA) which is responsible for setting up and maintaining records on taxpayers and taxes paid.
oicci demands reduction in abolition of super tax KARACHI
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verseas Investors Chamber of Commerce and Industry (OICCI) has submitted taxation proposals for the annual federal budget 2017-18; calling for cut in corporate tax rate to 25% from 30% and general sales tax rate from 17% to 13% in line with the rates in Asian region. It also demanded that 3% to 4% super tax be abolished as well, says OICCI statement here on Thursday. Commenting on the OICCI taxation proposals, its President, Khalid Mansoor said these budget proposals
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represented the collective recommendations of foreign investors. These were focused on accelerating economic growth and foreign direct investment (FDI) inflow in the country. He said OICCI’s comprehensive proposals were balanced and aimed at providing a level-playing field to investors and to enhance the documentation of the economy besides recommending certain structural and procedural changes to improve the overall taxation framework in the country. The OICCI recommends that the government should ensure at least ten year phasing out period so that local and foreign investors could base their plans on the tax policies. Overseas Chamber stresses that the targets given by the Federal Board of Revenue (FBR) large tax-payers units (LTUs) should be realistic on research based growth projections in different business sectors. Similarly, it said, growth in tax collections, over and above the projected economic growth, should be fully quantified by estimating the contribution from broadening the tax base.
Wednesday March 29, 2017
Chambers
chinese traders visit icci to explore business collaborations A
ISLAMABAD
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29 member delegation of Chinese companies representing various provinces of China visited Islamabad Chamber of Commerce and Industry led by Mr. Yin Lin Bing, Secretary General, Worldwide Business Culture Exchange Centre. Wang Zihai, President, PakChina Joint Chamber of Commerce and Industry also accompanied the delegation. The delegation was representing various sectors including power generation, manufacturers of transformers and electrical equipment, hydropower construction, transport, automobile, textile & clothing, food processing, mechanical & electrical trade, construction & real estate development, ship management services, mining machinery, pharmaceuticals, service industry and others. Speaking at the occasion, Yin Lin Bing, Secretary General, Worldwide Business Culture Exchange Centre (WBCEC) of China said that in pursuit of Chinese President’s One Belt One Road strategy, WBCEC was taking Chinese business delegations to
various countries. He said so far WBCEC has taken Chinese delegations to 29 countries and signed contracts and MoUs of more than US$ 50 billion. He said Chinese investors considered Pakistan a potential country for business and have come here to explore opportunities for JVs and investment. He said both countries have good potential to cooperate in pharmaceuticals, transport, industrial parks
and many other areas. He hoped that their visit would contribute to further strengthen cooperation between Pakistan and China. He stressed that ICCI should also take its delegation to China to explore new areas of mutual cooperation. In his welcome address, Khalid Iqbal Malik, President, Islamabad Chamber of Commerce and Industry welcomed the delegation and said that CPEC project has created a good
platform to put private sectors of both countries on a long-term partnership. He said that Pakistani entrepreneurs were keen to enter into joint ventures with Chinese counterparts in this historic project. He said China was importing raw material and goods worth billions of dollars every year to meet needs of its domestic industry and urged that China should focus on imports from Pakistan that would also improve our trade balance with it.
Dubai chamber concludes trade mission to india
piAf urges fBR to clear stuck-up refund claims
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he Pakistan Industrial and Traders Associations Front (PIAF) Chairman Irfan Iqbal Sheikh has urged the Federal Board of Revenue (FBR) to ensure early payment of stuck-up refund claims of the export-oriented sectors, which are facing severe hardships. The PIAF chairman, senior vice chairman Tanveer Sufi and vice chairman Shahzeb Akram said that the businessmen were bearing huge financial cost on their own hard earned stuck-up money; therefore, the FBR chairman should look into the matter and ensure early release of sales tax and income tax refunds. The PIAF members have now started feeling the pinch as they were already in deep troubles and experiencing toughest times because of multiple internal and external challenges.
DUBAI
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he Dubai Chamber of Commerce and Industry recently concluded a successful trade mission to India which was organised to facilitate economic cooperation and explore trade and investment opportunities in the country. The trade mission, part of the Dubai Chamber’s Global Business Forum roadshow, was joined by dignitaries, ofRicials and businessmen, who visited Mumbai and Ahmedabad, and met with key stakeholders from the cities’ public and private sectors. During the visit, plans were revealed by the chamber to open a new representative ofRice in Mumbai later this year, with the aim of
boosting bilateral trade and assisting UAE-based companies that want to enter the Indian market. The ofRice will also work to promote Dubai as an attractive trade and investment hub, and attract Indian companies that plan to expand to Dubai and access markets in the GCC and Africa. High-level meetings and sessions were attended by Devendra Fadnavis, Chief Minister of Maharashtra, Vijay Rupani, Chief Minister of Gujarat, Ahmed Abdulrahman Al Banna, UAE Ambassador to India, chamber ofRicials, and representatives from India’s private sector. Fadnavis lauded Dubai Chamber’s efforts to strengthen trade relations with India over the years, noting that Dubai is an ideal partner as the emirate shares historic trade and cultural ties with India.
Addressing delegates in Mumbai, Majid Saif Al Ghurair, Chairman of Dubai Chamber, highlighted the importance of the roadshow as it provided an ideal platform for UAE companies to learn out India’s business environment, while it also enabled the Chamber to showcase the various advantages that the emirate can offer Indian businesses. He revealed that the number of Indian companies registered with the Dubai Chamber now exceeds 36,000. He added that Indian companies accounted for 29% of all new members in 2016, and noted the important contribution of Indian businesses to the emirate’s economy. Dubai Chamber’s Chairman stated that the trade mission to India helped build on progress that was achieved following the recent visit.
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I&I-IR Dy Director Azhar promoted to BS-18 Wednesday March 29, 2017
National Anwar made Addl commissioner, faisal posted as Dy commissioner ISLAMABAD
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ISLAMABAD: Azhar Hussain Shah, an Inland Revenue Service officer, has been promoted to BS-18 on regular basis. The officer, presently posted as Deputy Director-IR (on acting charge basis) at Directorate of Intelligence & Investigation (Inland Revenue), Karachi, has been promoted to BS-18 in his group with immediate effect. According to the notification, if the officer is drawing performance allowance will continue to draw the same after promotion. He will continue to work at his present place of posting till further orders.
five inland Revenue officers granted performance allowance F
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ederal Board of Revenue has transferred/posted two Inland Revenue Service officers of BS 18-19 with immediate effect and until further orders. Muhammad Anwar (BS-19) has been transferred from the post of Additional Commissioner, Large Taxpayers Unit, Lahore, and posted as Commissioner Inland Revenue (OPS) Inland Revenue (Appeals), Sialkot. Khan Faisal (BS-18) has been transferred from the post of Deputy Commissioner, Regional Tax Office, Islamabad and posted as Additional Commissioner Inland Revenue (OPS) Regional Tax Office, Islamabad. According to the notification, the officers who are drawing performance allowance will continue to draw this allowance on the new place of posting. The officers have been directed to relinquish/assume charge, using online HRMS facility made available to FBR or by using their IJP logins.
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Amer Ahmad relinquishes charge as Member (fAte) mer Ahmad, a Pakistan Customs Service officer of BS-19, has relinquished the charge of the post of Member (FATE). Amer, pursuing the Establishment Division’s Notification No.1/172/2014-E.4 dated 16.03.2017, relinquished the charge of the post of Member (FATE), Federal Board of Revenue (HQ), Islamabad with effect from March 20. Meanwhile, Imtiaz Ahmed Shaikh, a Pakistan Customs Service officer of BS-19, has assumed charge of the post of Additional Collector, Collectorate of Customs (Adjudication-I), Karachi. The officer, in pursuance of Board’s Notification No.0715-CI/2017 dated relinquished the charge of the post. –CB Report
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ive Inland Revenue service ofRicers of BS-17, selected through the process of internal Job Posting (IJP), have been granted performance allowance. The ofRicers, including Ahmad Faiz, Najam-ul-Hassan, Muhammad SaRian Adeel, Namra Ijaz and Rizwan Manzoor, presently posted in Regional Tax OfRice, Faisalabad, have been granted performance allowance with effect from March 21. According to the notiRication, the grant of performance allowance will be governed through the terms and conditions laid down vide Circular No. C.No. 6(96)S(BIC)/2013-14 dated 06-032015 and will be discontinued in case prescribed terms and conditions are not fulRilled within one month from the date of issuance of this notiRication.
Afu surpasses St collection target in 21 days T
ISLAMABAD
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he Customs Station Air Freight Unit (AFU) Islamabad has surpassed the assigned revenue target for the month of March FY2016-17 with collection of Rs275million. The target was surpassed in 21 days (1st to 21st March) under the head of Sales Tax (ST). According to Deputy Collector AFU Shahid Jan, the performance of the AFU has been satisfactory during March FY16-17 as the collectorate was assigned Rs270million Sales Tax (ST). The target was surpassed because the holidays of China has ended and imported consignments start arriving at the AFU Islamabad. The AFU is also surpassing the assigned target because the Pakistan International Airline has paid its pending installments of Rs50million under the head of Sales Tax (ST) during March FY16-17. During the visit of Chief Collector (North) Sarwat Tahira Habib last week, she stressed the need for fo-
cusing on collection of With Holding Tax (WHT). Shaihd Jan added that under the guidelines given by Chief Collector, the AFU has collected Rs140.00million WHT during the Rirst 21 days of March FY2016-17. The AFU was assigned revenue col-
lection target of Rs155.00million for March. The deputy collector is optimistic that the AFU will surpass the assigned target of WHT for current month. The AFU collected Rs165 million Customs Duty during 21 days of current month March
FY16-17 as the AFU was assigned the collection target of Rs225million for the running month. Shahid Jan said the AFU will easily surpass the CD collection assigned by the Collector MCC Islamabad during March FY2016-17.
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Anjum Fida promoted as Superintendent Preventive ISLAMABAD: Anjum Fida, a Pakistan Customs Service officer of BS-16, has been promoted to the post of Superintendent Preventive Service. The officer, presently posted as Deputy Superintendent in MCC Peshawar, has been promoted to the post of Superintendent Preventive Service in the MCC Preventive, Karachi with immediate effect and until further orders. Anjum will actualise his promotion in his parent Collectorate and will be on probation for a period of one year, extendable for further period, not exceeding one year, provided that if no order is issued by the day following the termination of probationary period, the appointment shall deem to be held until further order.
fBR sets up inland Revenue Service to collect it, St, feD IRFAN BAHADUR
iMRAn ALi
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he Federal Board of Revenue (FBR) established the Inland Revenue Service (IRS) to collect Income Tax, Sales Tax and Federal Excise Duty as Pakistan Customs also serves as guardian of Pakistan borders against the movement of contraband trade. These were the views of an official Inland Revenue Service Peshawar on Tuesday when he talked to Customs Today at the Tax House Peshawar. He said Pakistan Customs helps protect the domestic industry, discourage consumption of luxury goods and stimulate development in the underdeveloped areas of
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the country. He was asked to differentiate the functions of Inland Revenue Service and Customs Collectorate in the run to generate money through proper obligations on the side of public, he said tax collected through Income Tax, Sales Tax and Federal Excise Duty does help to increase the capacity of regional taxpayers. Domestic taxes, comprising Income Tax, Sales Tax and Federal Excise Duty, constitute about 90% of the revenue collected by the FBR through IRS. These taxes are not only similar in essence but are also interdependent in practice, he added. He further said the assimilation of these taxes into a single administrative structure is going to be made soon. Spurred by these exigencies and with a view to apply the modern taxation techniques to improve the G.D.P ratio, the Inland Revenue Wing of the FBR was created, combining the three domestic taxes. It was expected that the inception of this wing would facilitate the taxpayers as it would provide them to carry through their tax matters in one organizational structure.
National
Six single & division benches hearing customs references at tribunal HQ
faisalabad intelligence seizes Boski valued Rs1.7million FAISALABAD
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he Customs Intelligence and Investigation has confiscated smuggled cloths worth Rs1.7million involving duty and taxes of Rs01million. Sources told Customs Today that intelligence officials received a tip-off through Director Rabab Sikander regarding the possible smuggling of Boski cloths. Following the information, the officials intercepted a bus near Kamalpur Motorway Interchange, Sargodha Road Faisalabad, and recovered three bags of special grade Boski cloths 2-Ghora (AAA Gold), made in China (240-kgs). The driver of the bus produced a booking slip No: RWP-FSD-308899-3 dated 20-02-2017 sender Ahmed and Receiver AB Rehman issued by Bilal Travels and Cargo Service Rawalpindi. However he could not produce any documented evidence of the legal import or lawful purchase of the recovered goods. Officials further asked the accused to show documents but he failed to prove anything, so the officials confiscated the items under the customs bylaws.
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bout six single and division benches are hearing customs references at the Customs Appellate Tribunal’s headquarters in Islamabad. According to details, these benches comprised of Chairman Malik Manzoor Hussain, Member Muhammad Nasir Khan, Member Ziauddin Wazir and Member Farhan Ali Syed. These members were also hearing cases on single benches even in the absence of chairman who was currently visiting Karachi regional ofRice. These benches were hearing a number of cases. However Chairman Justice (r) Manzoor Hussain and Ziaudding Wazir had heard several cases in recent days. These cases were Riled by M/s Trade Master, M/s Waseem Autos, M/s Nisar Traders, M/s Parts and Parts, M/s Chief Autos, M/s Aman Elahi and M/s Kohinoor Traders and others. M/s Trade Master had Riled a case against MCC only. All of other appellants had Riled cases against DGI&I. M/s Kohinoor Traders had Riled two cases against DGI&I, Islamabad.
Wednesday March 29, 2017
Tribunal had also reserved decision on M/s Wahid Hamid the other day. It had Riled case against the MCC Peshawar for auctioning imported items despite the tribunal had announced a decision for release of them. Chairman Justice (R)Malik Manzoor Hussain also held hearing on cases Riled against Directorate General of Investigation and Intelligence Islamabad and Model Collectorate of Customs Islamabad and Peshawar. M/s Pakistan Royal Group, M/s
Irfan Ullah and M/s Charisma Catering Islamabad had filed these cases. The appellants had filed cases challenging the announcements made by the DGI&I Islamabad. All three cases were filed in 2016. M/s Pakistan Royal Group and M/s Charisma Catering Islamabad had asked the tribunal to direct the department to release the imported items which were conRiscated by the customs authorities under the alleged attempts of smuggling.
Sukkur customs impounds cigarettes valued Rs510000
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he Anti-Smuggling Organization (ASO), Customs Preventive Sukkur, conRiscated smuggled cigarettes, including 650 cartons of Pine cigarettes, 50 cartons of Super Slim and 50 cartons of Milano, worth Rs510000 involving duty/taxes of Rs540600 during an action in Sukkur division. Following a tip-off received by Collector Agha Shahid Majeed Khan, the ASO team conducted a raid on Sukkur-Jacobabad to foil a smuggling bid. Under the supervision of Additional Collector Rehmatulah
Vistro, ASO team, comprising Ghulam Shabir Phulphuto, , Inspectors Abdul Wahab Sheikh, Nasrullah Jilal, Ayaz Ali Shah, Muhammad Jurial Abbasi, Agha Nazir Ahmed, Sepoys Shabbir Ahmed Thebo, Iqbal Sheikh, Hawaldar Mehram Ali and Driver Manzoor Shori, carried out a search operation and recovered the abovementioned non-duty paid cigarettes being smuggled into Pakistan from Quetta. The ASO registered separate cases of smuggling against accused and forwarded them to customs adjudication. After a seizure report, the ASO team deposited the conRiscated items into Sukkur State Warehouse. Meanwhile, The Customs AntiSmuggling Organization (ASO) Hy-
derabad has seized 750 cartons of foreign origin BAHMAN cigarettes worth Rs300000 involving customs duty and taxes of Rs318000 during an action in Sukkur. The action was taken following the directions of Collector Hyderabad Agha Shahid Majeed Khan. Sources told Customs Today that Additional Collector Rehmatulah Vistro received a tip-off regarding the smuggling of foreign origin contraband goods. He formed a team, comprising Superintendent Ghulam Shabbir Phulputo, Inspectors Nasrullah Jilal, Ayaz Ali Shah, Rahib Ali Abro, Abdul Wahab Sheikh, Muhammad Jurial Abbasi, Agha Nazir Ahmed, Sepoys Shabbir Ahmed
Thebo, Iqbal Sheikh, Hawaldar Mehram Ali, Driver Manzoor Shori and others, to take action against the smuggling. The ASO team intercepted a public transport vehicle near checkpost in Sukkur division and recovered the smuggled BAHMAN cigarettes. The ofRicials asked the driver about the documents regarding the legal import of the items but he could not prove legality of the goods. The team impounded the items under the Customs Act. A case was registered against the accused. The case has been sent to the customs adjudication for further legal action. The ASO deposited the conRiscated goods into Sukkur State Warehouse.
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Australia, Zambia in trade talks Wednesday March 29, 2017
World
CANBERRA: Zambia’s High Commissioner to Australia George Zulu says government is negotiating with the Australian states on the possibility of relaxing rules to allow Zambian goods to enter that country. Mr. Zulu says Australia has stringent import restrictions which have limited Zambian agriculture produce from being exported there. He has told ZNBC News in Melbourne, Australia that talks on the matter are ongoing and a decision will be made soon. Mr. Zulu has appealed to Zambian farmers to prepare themselves for the opportunity to export products to Australia but stressed that the produce must meet international standards. He also said Vice President Inonge Wina’s impending visit to that country this week is significant as it will further strengthen the ties between the two countries.
Dubai customs wins el china customs ecommerce Baz Award for 3rd time backdown boosts vitamin stocks DUBAI
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decision by Beijing to delay a planned increase to ecommerce import taxes boosted Australian and New Zealand-based vitamin and food stocks, underlining the importance of Chinese online sales to the region’s consumer brands. Shares in supplement company Blackmores and dairy group a2 Milk Company rose as much as 19.1 per cent and 5.3 per cent, respectively, on Tuesday following an announcement by China’s ministry of commerce that a planned tax rise on ecommerce purchases from overseas would be delayed until January 2018. The planned increase, announced last April, met with a push-back from retailers in the booming cross-border ecommerce market worth an estimated $90bn annually. Beijing’s decision provides
turkey’s total oil imports rise 24.26 percent urkey raised its oil imports by 24.26 percent in compared to the same month in 2016, Turkish Energy Market Regulatory Authority (EMRA) data showed Wednesday. The country’s oil imports reached 2.3 million tons in January. Iran held the biggest share of oil exports among exporting countries with 23.89 percent. Iraq and Russia followed with 23.88 percent and 15.36 percent respectively. On the production side, total refined petroleum products, including diesel and gasoline, increased by 5.06 percent to 2.5 million tons between January 2016 and January 2017. During the same period, total domestic oil sales, including diesel, gasoline and aviation fuel, rose by 4.98 percent to reach over 1.8 million tons. –CB Report
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a temporary respite for foreign companies that had been fretting the revamped rules would crimp the Rlow of imported food and consumer goods into China. China’s total cross-border ecommerce market has grown from Rmb53bn ($7.7bn) in 2011 to an estimated Rmb626bn in 2016, accord-
ing to consultancy Mintel, making it a crucial channel into the country for overseas consumer companies. Peter Nathan, chief executive of a2 Milk Company, on Tuesday said the decision signalled “a strengthening of the commitment to the cross-border ecommerce channel from the Chinese regulators”.
uS crude stockpiles at record high as imports surge
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S crude oil stocks rose to a fresh record last week, the Energy Information Administration said on Wednesday, as a surge in imports and rising domestic production more than offset a hike in reRinery runs. Crude stocks in the world’s top oil consumer have been building since the beginning of the year and undermining hopes that an OPEC-led deal to cut production will reduce a persistent global glut. Crude inventories hit a record 533.1 million bar-
rels after surging 5 million barrels in the week to March 17, nearly double expectations for a 2.8 million-barrel build, as imports soared 1.1 million barrels per day. U.S. production rose modestly to 9.1 million bpd last week, but has been growing steadily and is higher than year-ago levels. “The market remains nervous about rising U.S. production, which is also reducing the effectiveness of output cuts by the OPEC and some nonOPEC. –CB Report
ubai Customs won The El Baz Award for Excellence in Organizational Sustainability under the public sector category for the third time. The Award was developed and launched by Hamdan bin Mohammed Smart university (HBMSU) to encourage organizations to continue and develop more in CSR and support the implementation of CSR that is Rit for the 21st Century. Khalil Saqer bin Gharib, Director of Corporate Communication Department at Dubai Customs received the award today (Monday 6th March) from His Excellency Hussain bin Ibrahim Al Hammadi, Minister of Education and the award’s certiRicate from H.E. Lieutenant General Dhahi Khalfan Tamim, Deputy Chairman of Police and General Security in Dubai and
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Chairman of the Board of Governors of (HBMSU) in a special award ceremony that was held under the auspices of His Highness Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, Crown Prince of Dubai and HBMSU President in The Address Hotel, Dubai Marina. In a televisied speech, Dr. Farouq El Bazz thanked Dubai Customs and its continual participation in the award. He praised the role Dubai Customs plays at the social front and its valuable initiatives that beneRit different categories of people, considering it as a source of pride and an example to be followed by all. Commenting on the award Khalil Saqr said: “We are happy to have won this prestigious award for the third time. This reflects how committed and serious we are in developing and organizing CSR initiatives in fulfilment of the wise vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister and Ruler of Dubai.
iran unemployment rate at 12.4% ran’s unemployment rate in the current fiscal year (March 2016-17) stood at 12.4%, registering a 1.4% rise compared with the last year, the latest report by the Statistical Center of Iran said. The new data show 3.2 million Iranians were unemployed this year. It also shows 10.5% of men (or 2.19 million) and 20.7% of women (or 1.01 million) of ages 10 and above were jobless during the period. According to SCI, the unemployment rate was 13.7% for urban areas and 8.9% for rural areas. Joblessness was higher among women compared to men and
among those living in urban areas. The youth unemployment rate, i.e. the proportion of the population between the ages of 15 and 29, stood at 25.9% this year, posting a 2.6% rise compared with last year. SCI has put this year’s labor force participation rate—the proportion of the population of ages 10 years and above that is economically active either employed or looking for work—at 39.4% or 25.79 million people, registering a 1.2% rise compared with last year. Men’s and women’s economic participation rates were 64.1% and 14.9% respectively. –CB Report
Deutsche Bank chooses site for new uk headquarters
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eutsche Bank has pinpointed a site for a new UK headquarters, a boost for City of London’s status as a global Rinancial hub following the Brexit vote. The German banking giant has entered exclusive negotiations with Land Se-
curities on a new building currently being constructed in the City of London. The lender plans to take it on a 25-year lease and has told staff they will start being transferred during the second half of 2023. The move, which is subject to planning consent and a lease being agreed, will provide a “sustainable location for the corporate and investment bank”, Deutsche Bank said. In an internal
memo, Garth Ritchie, the bank’s UK chief executive, said: “The move underlines the bank’s commitment to the City of London and the importance it attaches to being an employer of choice in the capital” “It will advance the bank’s strategic goals of increasing efRiciency, reducing complexity and strengthening links between the business divisions and infrastructure functions,”
he added. It comes after Deutsche Bank announced on Monday that it had cut its bonus pot by 77% following a difRicult year. The troubled lender has been stung with a series of high-proRile Rines in recent months, including a $7.2 billion settlement with US authorities following a probe into its sale of mortgagebacked securities during the Rinancial crisis.
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Hong Kong luxury retailer flags turnaround signs
World Customs
HONG KONG: Spring might have come for Emperor Watch and Jewellery, as the Hong Kong-based luxury retailer reported a surprise turnaround in second-half profits following steep rental cuts and the return of mainland Chinese tourists to the territory. Majority controlled by the family of Hong Kong entertainment mogul Albert Yeung Sau-shing, Emperor is a retailer of European-made watches and jewelry with operations at home, in mainland China and Singapore. Emperor posted Thursday a modest net profit of 3.8 million Hong Kong dollars ($490,000) in the second half of last year, narrowing its full-year loss to HK$64.8 million from HK$120.1 million a year ago.
Dubai customs runs charity banquet for 1,000 seamen ubai Customs has organized a ‘Sufrat Al Khair’ or Banquet of Giving for over more than a 1,000 seamen, boat commanders and owners of dhows at Dubai Creek. The initiative is part of the ‘Year of Giving’ initiative launched by the President His Highness Sheikh Khalifa bin Zayed Al Nahyan. The kind gesture, done in coordination with the Coastal Customs Centers, is meant to enhance the values of solidarity and communication with the seamen at the Creek following the example of the founding fathers. “Sufrat Al Khair”, which will be organized throughout the year at all customs centers in Dubai, is one of 10 initiatives Dubai Customs launched for the year of giving. The initiative was selected from 160 ideas discussed during a brain storming session organized by Dubai Customs. Dubai Customs adopts this initiative and similar ones as an integral part of its CSR efforts to materialize the government vision of helping the UAE become the best country in the world in all fields. –CB Report
over 100 kilograms of heroin seized from truck in turkey
he deficit in the broadest measure of U.S. trade shrank in the final three months of 2016 but the gap for the full year rose to the highest level in eight years. The deficit in the current account shrank to $112.4 billion in the fourth quarter, a drop of 3.1 percent from the $116 billion deficit in the third quarter, the Commerce Department reported Tuesday. The improvement reflected stronger earnings by U.S. investors on foreign holdings, which offset a rise in the deficit on goods and services. The current account deficit for all of 2016 rose 3.9 percent to $481.2 billion, the highest annual figure since 2008. The current account is the most complete measure of trade because it covers not only trade in merchandise and services but also investment flows. –CB Report
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Sun pharma’s arm to acquire canadian drug firm thallion ndia’s biggest drugmaker Sun Pharmaceutical Industries Ltd has agreed to acquire Canadian pharmaceuticals firm Thallion Pharmaceuticals Inc for 2.7 million Canadian dollars (around $2 million). The acquisition will be done through Taro Pharmaceuticals Inc (Canada), the indirect arm of its group firm Taro, the Indian drugmaker said in a stock market disclosure. Sun Pharma had acquired a controlling stake in Taro in 2010 after a three-year-long battle for control. The total deal size includes an additional 0.4 million Canadian dollars due at the completion of an additional pre-clinical animal study, it added. The transaction will help its Canadian unit to expand its product development by the acquisition of orphan drug candidate Shigamab, which is used for treatment of E.Coli induced hemolyticuremic syndrome. Thallion Pharmaceuticals, which was founded in 1998, had a turnover of 3.14 Canadian dollars in 2016 against 4.81 Canadian dollars in the previous year. It was acquired by drug firm Bellus Health Inc in 2013. Hence, the current acquisition by Taro Pharmaceuticals Inc (Canada) comprises only Shigamab while all other Thallion assets have been transferred to Bellus Health. –CB Report
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Wednesday March 29, 2017
SHANGHAI
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ore than 100 kilograms (220 pounds) of heroin have been seized from a truck in Kocaeli province near Istanbul, according to a police ofRicial Tuesday. A police source who spoke on condition of anonymity said a team from the Kocaeli police’s antidrug unit stopped a truck with a foreign license plate on a highway headed to Izmit district. With the help of a sniffer dog, 115 kilograms (254 pounds) of
heroin were found hidden in various parts of the truck, which had entered Turkey via Iran. Police suspect the drug was headed to Europe, and the driver for whom four arrest warrants had been issued on smuggling charges was arrested, the police ofRicial said. Meanwhile, Phoenix Solar AG (ETR:PS4) has been awarded another utility-scale solar project by Akfen Renewable Energies in Turkey, of 11.2 MWp this time, the German developer said today, and also announced the establishment of a local subsidiary. A consortium led by the energy arm of Akfen Holding has selected Phoenix Solar to take charge of all engineering,
procurement and project management activities, including construction supervision, and to operate and maintain the power plant in Amasya. Construction will start this month, while completion is planned for September. The photovoltaic (PV) park in Northern Turkey will generate over 17 GWh per year. In November, Phoenix Solar announced the grid connection of a 9.1MWp governmentally licensed solar farm in Eastern Turkey for Akfen Renewable Energies. It partnered with Asunim Yenilenebilir Enerji Teknolojileri on that project. On announcing the new Akfen project today, the German company also said it has established a subsidiary in Ankara.
uk’s car exports to india grow 11-fold in 7 yrs, JLR tops list
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xport of cars from Britain to India grew almost 11-fold in the past seven years with Tata Motors-owned JLR’s Land Rover and Jaguar models topping the best selling list, according to UK’s Society of Motor Manufacturers and Traders. On the other hand, Indian-built models accounted for 31,535 new car registrations in the UK last year, a growth of 12.6 per cent from 2015. “In 2016, In-
dian motorists bought 3,372 Britishbuilt cars, up from 309 in 2009,” said the automotive industry body Society of Motor Manufacturers and Traders (SMMT). Last year, demand rose 15.8 per cent compared with 2015, lifting India from 10th to 8th place in the UK’s Asia export markets, it added. SMMT said the top Rive British bestsellers in India are Discovery Sport, Range Rover Evoque, Jaguar XF, Jaguar XE and the Jaguar F-Pace. SMMT Director of Communications and International Tamzen Isacsson said: “As a car market, India
really understands British brands, and thanks to its engineering excellence and highly skilled workforce, the UK has a rich heritage of producing the highest quality, globally competitive premium vehicles”. Growing prosperity in Asian markets in recent years has seen a surge in demand for premium cars, even despite high import duties in many countries, she added. Indian motorists are now also able to buy more British- built components than ever before, SMMT said. Last year, around 14 million pounds
worth of UK car parts were bought by the Indian automotive aftermarket. This is set to increase signiRicantly, by around 15 per cent annually over the next Rive years as the Indian car parc grows, and more owners look for high quality British brands to Rit to their vehicles,” it added. SMMT said Asia is now the third biggest export market for British built cars, after Europe and America, accounting for 13.4 per cent of sales. Economic growth has led to increased demand for high-quality luxury vehicles.
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Alleged murderer offloaded from plane at Lahore airport Wednesday March 29, 2017
Lahore
LAHORE: The Federal Investigation Agency (FIA) arrested an accused who was travelling from Malaysia to Lahore by Malindo Airlines. FIA sources said accused Hizbullah Khan was arrested by the authorities at the Allama Iqbal International Airport. He was wanted by the Mianwali police in a murder case. On arrival at Allama Iqbal international airport FIA arrested him. Earlier on Thursday, the FIA has also offloaded a passenger travelling on a fake visa. In the preliminary investigation, the detainee revealed that he had acquired work permits after paying a huge sum of money to a travelling agent based in Lahore.
fto adjourns hearing of M/s Akber enterprises case filed against Rto-ii LAHORE
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he Federal Tax Ombudsman (FTO) has adjourned the hearing of a case Riled by M/s Akber Enterprises Lahore against Regional Tax OfRice-II (RTOII) until the next date. According to the details, FTO Advisor Tariq Yousaf heard the case of Naveed Akber of M/s Akber Enterprises Lahore in which the counsel for the appellant argued that the RTO had failed to release the tax refund of the last few years claimed by the company. He said that the RTO-II collected excessive tax from the company during the last two years. They approached the commissioner concerned many times for issuance of the refunds but the RTO-II ofRicials did
court adjourns tax evasion hearing for next week he Special Court of Customs Taxation and Anti-Smuggling Organization adjourned the hearing of a suspect allegedly involved in Sales Tax evasion. Wamiq Zaka was arrested by the Federal Board of Revenue (FBR) Inland Revenue (IR) following the charges of huge Sales Tax evasion. The board had received information regarding the Sales Tax evasion of millions of rupees by Zaka. After getting arrestwarrant from the Customs Court, the IR team apprehended the accused under the Pakistan Sales Tax Act-1992. Later, he was produced before the court wherefrom he was sent to jail on physical remand. Currently, he is in jail on judicial remand after the expiry of physical remand. The Customs Court now had extended the judicial remand for fourteen days for further trial and prosecution. –M Imran Mehar
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not pay the refunds after the passage of reasonable time. At the end, the company decided to approach the FTO seeking interference in this case. The counsel appealed the FTO advisor to direct the chief commissioner Inland Revenue (CCIR) RTO-II to clear the refund claims. The counsel further said that the RTO should refund the excess collection in wake of taxes by the end of Rinancial year but the situation is quite otherwise. Delay in issuance of refunds put burden on the taxpayers, he said, adding that the RTO should make audit of the cases and release the extra amount collected by it from the taxpayers. On the other hand, representative for RTO argued in favor of department. After hearing the arguments from both sides, Adviser Tariq Yousaf adjourned the case until for further hearing and directed the parties to appear on the date to present arguments in the case.
'it is high time to say no to iMf; More tax means no more loans’
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ssistant Commissioner Inland Revenue Zone VI, Corporate Regional Tax Officer
(CRTO) Muhammad Ali Taj, has said It is high time to say no to International Monetary Fund (IMF); More tax compliance means no more loans , choice is ours. During an exclusive interview to Customs Today, Muhammad Ali Taj said Power Sector (IPPs, RPPs, GENCOs, Distribution and Transmission
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Companies), advertising agencies, electronic & print media, education sector fall in his jurisdiction wherefrom he collects taxes. Talking about the working procedure for tax collection, Taj said he works for enforcement of statutory statements under Section 165, Annual Income Tax Return under Section 114 of the Income Tax Ordinance-2001 and Sales Tax Returns under Section 26 of the Sales Tax Act-1990, monitoring of deduction, collection and payment of tax at source by withholding agents on daily and monthly basis. He also conducts Desk Audit as well as Field Audit of Statements of Tax Deduction under Section 165 and Annual Income Tax Return under Section 114 of the Income Tax Ordinance-2001 and Sales Tax Return under Section 26 of the Sales Tax Act1990. Muhammad added that he conducts Audit viz a viz withholding taxes in terms of Sections 161 and 122(1) of the Income Tax Ordinance-2001 and Section 11 of the Sales Tax Act-1990.
traders, industrialists appeal govt for fiA recovers over Rs300 million Investigation early settlement of outstanding issues heAgencyFederal (FIA) has arrested six
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raders and industrialists have demanded of the government to extend rewards to the taxpayers who have been contributed to the national exchequer. They also appealed for settlement of their rebate and refund claims at the earliest. Lahore Traders Right Front Forum vice President Rao Khursheed Ahamad told Customs Today that the government should go after tax evaders instead of harassing the taxpayers already in the tax net.
He said that the government has to brow billions of dollars taxes every year due to the tax evasion. He said that there is an urgent need to make the revenue collection authorities to improve their performance. Industrial Front Chairman Irfan Iqbal Sheikh urged the government to resolve the taxpayers issues of beside the taxpayers should be awarded for their service of contributing the important revenue to the tax revenue. –CB Report
people for allegedly running hundi and hawala business and recovered over Rs300 million in foreign and Pakistani banknotes from them. An FIA corporate crime circle team headed by Deputy Director Jamil Ahmed Khan Mayo conducted a raid on the Pracha Currency Exchange in Anarkali and arrested the suspects for running the illegal business. Those arrested were identiRied as Nauman Sultan, Zahid Malik, Saghir, Ishtiaq, Qadeer Malik and Amin Khan. An amount of over
Rs300m – including Rs140m in Pakistani banknotes, 5m Iranian riyals, 47,045 Qatari riyals, 69,020 Swiss francs, 14,550 Indian rupees and 1.3m US dollars – was recovered from the suspects. A case under section 4, 8, 23 FER Act, 109 PPC, 4 AML Act has been registered against the suspects. –CB Report
customs ASo impounds Rs 90m illegal items, vehicles
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LAHORE
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ustoms Lahore Anti-Smuggling Organization has conRiscated Rs 90.2 million non-customs paid goods and articles and vehicles during the month of February Rinancial year 2016-17. As per details, the ASO conRis-
cated Rs 92,000,000 illegally imported goods and vehicles which if were dumped in the market may have posed serious damage to the legal business in the market. On information, the ASO seized Rs 75 million skimmed milk and bags of dry milk from a rice Sheller from Muridke. The customs ofRicial sources said that the milk was being supplied to the outles which make
ice cream in the city. The ASO conRiscated Rs 3 million gas cylinders, piano soft ink pen, tricircle, steel nail, electronic motor pump, Panasonic automatic iron, aluminium foil paper, Vatika hair oil and other goods. The goods were to be supplied to the city markets to various small traders through Hino Truck registered TTC-306. Yet in another raid the ASO im-
pounded Rs 1.5 million skimmed milk and empty bags while 32 cartoons of smoking coal worth Rs 1.5 million were also seized during the month. Similarly the ASO seized cartons of match cracker loaded on Hundai LZJ-7031. The collectorate also seized millions of rupees worth non-customs paid luxury vehicles from various places in the city.
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PBIF lauds govt’s decision of upgrading ports ISLAMABAD: Pakistan Businessmen and Intellectuals Forum (PBIF) President Mian Zahid Hussain has praised the government’s decision of upgrading existing ports and said that this initiative will accelerate the pace of development. He said that importers and exporters are facing problems due to congestion on the ports which is making trade costly. He said that Pakistan ports handle almost 90 percent of the import and exports and growing requirement call for capacity expansion of the ports which will reduce the price of exports and imports. He said the requirements of CPEC can be met easily if ports are upgraded while it will also help in import and distribution of LNG which is the fuel of the future.
Halifax port growth calls for longshoremen year of surging growth for the port of Halifax means a growth in jobs as well. The Halifax Employers Association is hosting a job fair later this month to hire 32 casual longshoremen, a move made necessary by that growth. This uptick in cargo moving through Halifax didn’t come naturally. It took hard work on the part of every organization involved. “We’ve made a concerted effort,” said Lane Farguson, of the Halifax Port Authority. “All of the different groups on the waterfront have been working together to drive business.”This includes groups from rail service providers to labour groups, as well as the port authority itself. This past year alone, the port has seen a 14.9 per cent increase in containerised cargo moving throughout. This growth affects all aspects of Halifax life. “Just about everything that is available in most stores moves through
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the shipping supply chains at some point,” said Farguson. Abut 90 per cent of goods we interact with are shipped through containerised cargo. This means they go, more often than not, through the port of Halifax. Richard Moore, of the Halifax Employers Association, attributes the need for more longshoremen to this growth, as well as to an aging workforce. “The port is getting a lot busier,” said Moore. “At the same time we’re seeing more turnover than usual.” The addition of these casual workers will help relieve shortages during busy periods. It will also allow the port of Halifax to deal with longshoremen who retire or who start working less. The employers association wants to bring more casual labour into the port workforce as unionized longshoremen age out, according to Moore. –CB Report
Ports & Shipping
port of Milford showcases business and regeneration plans WASHINGTON
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he ability of Welsh ports to deliver prosperity for all was highlighted this week to Welsh Government, Assembly Members, councillors and key business leaders at a reception in the Senedd, Cardiff. Assembly Member for Preseli Pembrokeshire, Paul Davies, hosted the event on Tuesday 7th March at the National Assembly for Wales enabling the Port of Milford Haven, Pembrokeshire County Council and other partners on the Milford Haven Waterway to showcase the vibrant economic cluster that exists around Wales’ largest port. Attendees heard that, as an island nation with 95% of goods being traded in and out of our ports, it is important for the sector to be prioritised. By ensuring the right conditions are in place to foster new trading relationships and manufacturing-led growth in the future,
Wales can strengthen its economy. Attendees were struck by the significance and scale of the supply chain that ports sustain, providing jobs in surrounding communities – a fact that is often overlooked. The Port of Milford Haven supports 5,000 Welsh jobs and is Wales’ largest port. It is home to Rive major marine terminals as well as one of
Europe’s largest and most efRicient power plants. Valero’s reRinery accounts for around 10% of Wales’ exports and is worth approximately £55m per annum to the Welsh economy. Combined, the two liqueRied natural gas terminals at the port, South Hook LNG and Dragon LNG, are capable of supplying up to 30% of the UK’s natural gas demand.
Wednesday March 29, 2017
port of Amsterdam reduces co2 footprint by 25% ollowing a previous successful pilot, GoodFuels Marine has also won Port of Amsterdam’s tender for its fleet of five patrol vessels. The vessels will now run on fuel containing 30% exceptionally high-quality biodiesel. This will reduce CO2 emissions by 25% compared to fossil diesel. Marleen van de Kerkhof, Port of Amsterdam Harbour Master: ‘Clean shipping is a key spearhead of our sustainability strategy. Part of this strategy entails making our own patrol vessels more sustainable. Using marine biofuels enables us to reduce our own CO2 by 25%, which is a good step in the right direction.’ Dirk Kronemeijer, CEO of GoodFuels Marine: ‘Port of Amsterdam and Port of Rotterdam have actively supported the development of marine biofuels from the beginning. This is why we are especially pleased that, after a successful pilot, Port of Amsterdam will be able to reduce the CO2 emissions of its own patrol vessels by 25%. –CB Report
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trade facilitation impacts growth of gDp T
WASHINGTON
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rade facilitation refers to broader range of measures that aims to streamlining the movement of goods, reduction of red tape, procedural barriers including tariff structures and other broad trade supporting services. Trade facilitation impacts on the percentage growth of Gross Domestic Product (GDP) and international trade. Globalisation, deregulation, logistics integration and containerisation have also impacted all sectors of Bangladesh in general and maritime sector, in particular. With the adoption of deregulation policy in the 80’s and open market economic policy in the 90’s, trade growth in Bangladesh accelerated necessitating efficient cargo handling through ports, particularly the Chittagong Port. The for-
eign trade accounts for approximately 38 per cent of GDP. The average maritime dependency factor of the country is about 33 per cent (last five years). In Bangladesh, trade facilitation encompasses the area of the growth of container, reduced turnover time and occupancy rate of vessels, enhancement of the physical infrastructural facilities of port and cargo handling capacity, improvement of transportation facilities along with the mode of transportation, enhancement of the overall capacity of the Inland Container Depot (ICD), River Inland Container Depot (RICD) and digitisation of cargo handling and services across the border. It contributes to lowering the costs of trade, increasing market competitiveness in the international market and enhancing economic wealth. Trade facilitation is effected by investment in the improvement
of port facilities, transportation infrastructures inside and outside the ports, Information Communication technologies (ICT), handling and custom clearance facilities and environmental aspects of the ports etc. EXISTING FACILITIES OF CHITTAGONG PORT: Chittagong Port (CP) plays a pivotal role in revitalising the economy and for sustained economic growth of Bangladesh through facilitating international trade. The bulk of international trade is generated from the DhakaChittagong corridor where more than a third of the country’s economic activity is located. Built in 1887 near Karnaphuli River, 16 Km upstream of Bay of Bengal, Chittagong Port is an integral part of the sub-regional transport and logistics chain connecting northeastern India, Bhutan and Nepal to Europe, North America and Southeast Asia. The average size container vessels
serving the Chittagong port is 2500 TEUs to 3000 TEUs having draft of 9.1 meters (more modernised sea ports are found handling container vessels of 5000-18,000 TEUs) In Bangladesh, both export and import and regional trade (such as for Nepal, Bhutan, and northeastern Indian states) are handled through two seaports (Chittagong Port and Mongla Port), ten land ports ((Benapole, Burimari, Akhaura, Sonamasjid, Hili, Banglabandha, Teknaf, Bhomra, Bibirbazar, and Nakugaon) and three international airports (Hazrat Shahjalal International Airport, Dhaka, Shah Amanat International Airport, Chittagong, and Osmani International Airport, Sylhet). According to sources, the seaports handle 87 per cent of Bangladesh’s trade, while land ports handle 13 per cent. The Chittagong Port services 79 per cent of Bangladesh’s agricultural imports and exports.
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Customs Car Cell impounds NDP vehicle worth Rs05.00m ISLAMABAD: The Car Cell of the Model Customs Collectorate Islamabad has impounded a Non-Duty Paid Mazda RX-7 sports car with no documentary record. The vehicle was seized by the Car Cell Islamabad after getting a tip-off sent through the collector office. The value of the seized vehicle was estimated Rs05.00 million. According to Assistant Collector Preventive Majid Hussain Gaad, the Anti-Smuggling staff has sent the car to forensic lab for test. The customs authorities believed that either car was smuggled or illegally bought.
Wednesday, March 29, 2017
CUSTOMS BULLETIN
BBiA surpasses assigned target by Rs03.59 million during eight months ISLAMABAD tARiQ DeRYA
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ustoms Station Benazir Bhutto International Airport (BBIA) Islamabad exceeded assigned target during eight months (July to February) FY2016-17 with an amount of Rs03.59million. The BBIAI was assigned Rs17.52million revenue target for eight months of current Financial Year whereas it collected Rs20.11million during said period. According to Dr. Arslan, Collector MCC Islamabad, after adopting new initiatives at the airport, the performance of customs staff is increasing as the BBIA increases 237% revenue target. The BBIA was assigned Rs14.65million revenue target for corresponding year 2015-16 whereas it collected Rs8.47million against the assigned target. Regarding the new initiatives, the BBIA has established a canine cell from where two sniffer dogs have been handed over to customs staff whereas we are planning for fullflag canine cell with eight sniffer dogs plus eight dog handlers. The MCC has established 24/7 passenger facilitation desk at air-
port due to which more seizures
are expected to increase which
will ultimately enhance revenue
during the current financial year.
SHc bars tax authorities from taking action against M/s united king KARACHI
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he Sindh High Court (SHC) has restrained the tax authorities from taking any coercive action against the petitioner on a constitutional petition Riled by M/s United King against an impugned show cause notice for recovery of Rs 17,502,073 for the tax period from October 2013 to August 2016. A
two-member bench, headed by Justice Aqeel Ahmed Abbasi, was hearing the petition. Earlier, counsel for the petitioner stated that petitioner is engaged in the business of manufacturer, sale of sweets (mithai), cakes and bakery items like bread, rusks, (exempt items under the sales tax act, 1990), etc also sales eggs, beverages, batter etc. However, deputy commissioner Inland Revenue Unit-4 Zone-III, Large Taxpayer Unit-II issued a show cause notice dated 25/10/2016 and 08/11/2016 for charging alleged extra tax 2 percent
amounting to Rs 17, 502, 073 for the tax period from October 2013 to August 2016 in terms of value 58 S & 58 T of chapter XIII of sales tax special procedures rules 2007 as amended vide SRO 896 (1)/ 2013 dated 04/10/2013 is illegal, unlawful, mala Ride and without jurisdiction. Citing Secretary Revenue Division, the chief commissioner Inland Revenue Large Taxpayer Unit-II, the commissioner Inland Revenue Zone-III Large Taxpayer Unit-II and deputy commissioner Inland Revenue Unit-4 Zone-III, Large Taxpayer Unit-II as respondents,
petitioner pleaded the court to declare that act of the respondent is illegal, mala Ride and arbitrary and court also may set aside impugned show cause notice for recovery of said amount and restrain them from taking any coercive action against the petitioner. Meanwhile, The Sindh High Court (SHC) has directed commissioner Inland Revenue Appeals-I to decide the appeal of the petitioner within four weeks. A two-member bench, comprising Justice Aqeel Ahmed Abbasi and Justice Muhammad Arshad Khan, ordered this on a constitutional
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petition Riled by Jubilee Life Insurance Company Limited against impugned show cause notice for recovery of Rs 100,417,433 issued by additional commissioner Inland Revenue Audit Range B, Zone-III Large Taxpayers Unit, and seeking directions for disposal of its appeal pending before commissioner Inland Revenue Appeals-I, Audit Range B, Large Taxpayer Unit. After the hearing, the court disposed of the constitutional petition with directions to the respondents not to enforce recovery.