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pAkIStAN’S FIRSt INDeptH NewSpApeR oN cUStomS
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Karachi, Thu March 22, 2018
PESHAWAR
IRFAN BAHADUR
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he adjudication authority at Customs Collectorate has said that the clearance of machinery older than Qive years is banned and conQiscation is mare treatment of it. It is important to mention here that the Collector Mohammad Saeed Jadoon also endorsed the inquiry carried out by customs department against the scam of illegally clear-
ance of consignments at Dry Port Peshawar. The sources informed Customs Today that Collector on Tuesday in a meeting with assistant collectors said that strict surveillance must be formulated to curb corruption. The collector Customs directed the high ups of the Peshawar Collectorate to serve with hard work in order to attain dignity. Collector Customs added that no effort will be spared to mend the ways of corrupt practices in Customs House Peshawar. The collector also appreciated the modern tools in order to keep
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close check and balance upon the import and export agreements which make the Customs department to involve. The Customs Department has an important role in the economic up left of the country by increasing trade to facilitate importers by providing modern techs and tools. The international community has been transformed in to economic village and to become part of that customs department must have to be free of corruption bribery and male practices only than trade community of Pakistan could be trusted.
Customs Islamabad posts 83.68pc growth
Evaded taxes & duties of Rs13.24m retrieved from defaulters companies
Customs I&I to hold auction of NDP goods, vehicles on March 27
Surriya set to revise Valuation Ruling No: 902/2016 on April 24
Gwadar Customs seizes huge quantity of NDP goods worth Rs12.28 million
MCC Islamabad showed 83.68% achievement under the head of FED | See pAge 02 |
Customs Export has recovered the evaded taxes and duties amounting to Rs13.24m | See pAge 03 |
Customs I&I has announced to hold the auction of NDP goods and vehicles | See pAge 04 |
DG Valuation has decided to revise the Valuation Ruling No: 902 /2016 on April 24 | See pAge 10 |
Gwadar Customs has impounded huge quantity of smuggled items | See pAge 16 |
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Contraband 120kg betel nuts seized at BBIA Thursday, March 22, 2018
Islamabad
ISLAMABAD: The customs staff of the Benazir Bhutto International Airport (BBIA) Islamabad impounded 120 kilogram of contraband betel nuts being smuggled into the country via Accompanied Baggage Section by a notorious smuggler coming from Sharjah. Nisar Ahmad Phulrwal, Additional Collector, Benazir Bhutto International Airport (BBIA), told Customs Today that, on a tipoff shared by Collector Model Customs Collectorate (MCC) Islamabad BBIA, the customs staff intercepted smuggler named Asam Chuie coming from Sharjah by Shaheen Airline.
customs Islamabad posts 83.68 percent growth
tribunal directs parties to present related record of customs references ISLAMABAD
ISLAMABAD
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he MCC Islamabad showed 83.68% achievement under the head of FED during January to March 10 against an assigned revenue collection target for the entire 3rd-Quarter (January to March) FY17-18. According to details given by the sources of Model Customs Collectorate (MCC) Islamabad that the collectorate had been allocated a revenue target of Rs224.05million for the entire 3rd-Quarter FY17-18 while it earned Rs187.49million under the same head during Qirst two months and 10 days (January to 10th of March) FY17-18. Now the MCC has to generate Rs36.56million during the rest of coming 21 days of March FY17-18 to meet the earmarked revenue target of the entire third quarter of FED. It added that the collectorate has been assigned a huge revenue target under the head of FED for the month of March FY 17-18. It was told that, due to long holidays at China, various consignments of imported goods are stuck up at ports which will reach Islamabad during the next 21 days of March FY17-18 it is therefore hoped that the allocated target will be achieved easily. During first 10 days of March, the MCC Islamabad showed 0.01% growth against an
he Customs Appellate Tribunal has issued directives to the parties to submit the record related to a couple of customs references involving field oďŹƒces of the Federal Board of Revenue (FBR). The Customs Appellate Tribunal’s bench, comprising of Members Tribunal Syed Muhammad Anwar and Muhammad Nasir Khan, heard the matters.During the previous hearings, the tribunal directed the respondents to submit their replies at the earliest. M/s United Diplomatic Bonded Warehouse and M/s Danial Engineering had filed the references.Counsels from M/s United Diplomatic Bonded Warehouse and M/s Danial Engineering appeared before the bench and demanded time from the bench for finalizing preparations for the case.The bench directed the counsels to finalize the arguments and other related requirements and then appear before the bench in the next week. M/s United Diplomatic Bonded Warehouse and M/s Danial Engineering had filed cases against the Model Customs Collectorate Islamabad. It is necessary to mention here that Customs Appellate Tribunal has decided to conclude the hearing of pending cases on priority basis.
earmarked revenue collection target. Sources informed CT that the collectorate was assigned Rs192.66million as FED while it received Rs0.2million of FED during 1st to March 10, 2017-18 while overall performance of the 3rdQuarter is satisfactory. The MCC Islamabad displayed 210.01% increase against an allocated revenue
collection target for the month of February FY17-18. The MCC collected Rs45.09million as FED against an assigned target of Rs21.47million. The MCC got Rs23.62million extra revenue against an earmarked revenue target during the month of February FY17-18. During the month of January FY17-18, the collectorate gen-
erated Rs142.38million under the head of FED against an allocated revenue target of Rs9.92million. The MCC collected Rs132.17million additional revenue under the same head against an assigned target. The collectorate showed 1435.28% achievement of FED against an earmarked revenue collection target for the month of January FY17-18.
IHc orders submission of record of four references filed against cAt, AtIR
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ISLAMABAD
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he Islamabad High Court on directed the parties to submit the record of cases of four customs matters Qiled against the Customs Appellate Tribunal and Appellate Tribunal Inland Revenue. A citizen, M Anwar Khan, had Qiled four customs references against the Customs Appellate Tribunal and Appellate Tribunal Inland Revenue.
The IHC Division Bench, comprising of Justice Aamer Farooq and Justice Mohsin Akhtar Kiyani, was hearing the matters. Meanwhile, another bench also dated in ofQice the hearing on cases submitted by M/s Pakistan Tobacco Company Limited. The bench also heard another tax matter Qiled by M/s Pakistan Tobacco Company Limited. The appellant had Qiled the case challenging a show cause notice issued by the Large Taxpayers Unit Islamabad. M/s Pakistan Tobacco Company
Limited had contested the show cause notices issued by the Qield ofQices of the Federal Board of Revenue. According to details, M/s Pakistan Tobacco Company Limited had challenged the recovery of sales tax by the LTU Islamabad. M/s Pakistan Tobacco Company Limited had submitted that the department had issued the demand for the tax year 2010 under the head of sales tax. The Federal Board of Revenue (FBR), ofQicers of LTU including Commissioner Inland Revenue.
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SHC adjourns hearing of vehicle detention case KARACHI: Sindh High Court has ordered production of an old Toyota Hiace van detained by Preventive’s Anti-Smuggling Organisation (ASO). The bench, comprising Justice Munib Akhtar and Justice Mrs Ashraf Jahan, heard a petition filed by one Adnan who alleged that his vehicle was confiscated by ASO Preventive despite production of all relevant documents. It was an old vehicle, the counsel for petitioner submitted.
Adjudication-I performs well by serving 12 notices on defaulter cos
Thursday March 22, 2018
Karachi
evaded taxes & duties of Rs13.24m retrieved from defaulters companies
KARACHI
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he Customs Adjudication-I showed an excellent performance in the month of February and first 13 days of current month. The adjudication has issued seven show cause and five final notices to defaulter companies in the month of February and three final notices in the current month. Sources told Customs Today on Tuesday that the Customs Adjudication-I has retrieved Rs4.66million from M/s Reliable Electronics Thatta. The company was allegedly involved in the tax evasion. Sources told reporter that Collector Customs Adjudication-I has served a show-cause notice on said company for allegedly causing the treasury a loss of Rs4.66million.
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Dollar soars to Rs117 in open market, Rs118 in interbank KARACHI
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he US currency jumped by Rs5.10 in open market and touched the highest level of Rs117, while it also soared in interbank by Rs7.50 to reach Rs118 at closing. The price of the dollar increased by Rs3.40 for buying at Rs115 and for selling at 119 in open market after gaining Rs5.10. The greenback added Rs7.50 for buying at Rs 117.80 and for selling at Rs118 in interbank. The local currency also touched the record level of Rs119 but closed at Rs117 in cash-free market. According to economic experts, the prices of fuel and other commodities could rise in the country as a result of the latest increase. However, the country’s local industry could also get a boost as exports are taking a dent while imports are rising, they added.
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he Customs Export has recovered the evaded taxes and duties amounting to Rs13.24million from defaulter companies which were issued with notices in this regard. During the scrutiny of the import data, it was found that M/s United Knitwear availed undue beneQits and concessions by importing different consignments in the month of November 2017. The consignment was got cleared through Examiner Sardar Rab from Port Qasim by misusing the SRO 568. The company was found involved in a tax evasion of Rs4million. After detecting tax evasion, the Customs Export served on the company a Qinal notice to deposit the evaded amount within seven days. After receiving the notice, the management of the M/s United Knitwear deposited the evaded amount in the ofQicial account of the Customs Exports. On the other hand, the management of the M/s Haris Jeans also cleared Rs5.68million of taxes and duties. Sources told CT that M/s Haris Jeans also availed undue beneQits and concessions and avoided paying taxes according to the customs bylaws. The Customs Export authorities issued it with a Qinal notice. After receiving the notice, the management of the M/s Haris Jeans deposited the evaded
amount of taxes on 14th of March. Meanwhile, The Customs Export has recovered evaded amount of taxes and duties of Rs 13.31 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 Yousuf Textile availed undue beneQits and concessions after importing different consignments by misusing the SRO 568
the company was found involved in a tax evasion of Rs4million. After detecting tax evasion, the customs export served on the company a final notice to deposit the evaded amount within seven days
SRB to withdraw St over 4,200 taxpayers
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KARACHI
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indh Revenue Board (SRB) has decided to cancel sales tax registration of more than 4,200 taxpayers who were unable to Qile their returns. The ofQicials said the SRB suspended sales tax registration of 4,338 taxpayers for non-Qiling of monthly returns and failure to discharge their liabilities on July 25, 2017. SRB ofQicials said around 100
taxpayers had responded to the notices and got their registration restored while most of them failed to fulQil the requirements despite repeated notices. “Fair opportunity was given to the suspended taxpayers,” an ofQicial said. “So, de-registration process of 4,000 taxpayers would soon be launched.” SRB ofQicials said the taxpayers were suspended on the basis of noncompliance with returns Qiling and nonpayment for the period of March to June 2017.
The SRB was set up in 2010 and started operation in 2011 to collect sales tax services within the provincial jurisdiction. The sales tax registration is mandatory for providing or rendering services to recipients.The suspension disqualifies a taxpayer from bidding to government projects, clearance of goods at the customs stage and claiming input adjustment for services provided in other provincial or federal jurisdictions.
through Examiner Usman Ali on 19th December 2017. Sources further told that the company was allegedly involved in the tax evasion of Rs 5.45 million. After detecting the tax evasion, the Customs Export served on it a Qinal notice on 26th February, 2018 to deposit the evaded amount within fourteen days. After receiving the notice, the management of M/s Yousuf Textile deposited the evaded amount in the ofQicial account of the Customs Export.
Stocks add 288pts in early trading he Pakistan Stock Exchange opened keeping previous day’s positive note and gained 288 points to reach 43828 level in early trading. On Monday, the stocks edged higher with support of bluechip stocks. OGDC, MCB, ENGRO, POL, and PSO remained top contributors to the 100-share index, adding 181 points.
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Additional Collector Zahra Haider issues ONO in car seizure case Thursday March 22, 2018
Lahore
LAHORE: Collectorate of Customs Adjudication Additonal Collector Zahra Haider has issued Order-inOriginal no 30/2018. According to the details, Superintendent Anti-Smuggling Organization intercepted a Toyota Premio car bearing registration no: LEC-967. The ASO team asked the owner of the vehicle, who was identified as Muhammad Sarwat Hakeem, to produce documents of the vehicle but he remained failed to provide any relevant legal documents. The team impounded the vehicle and forward the case to the Customs Adjudication.
Fto accepts appeal filed by m/s crescent pharma against Rto-II LAHORE
SAJID NAwAZ
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he Federal Tax Ombudsman (FTO) has accepted a tax refund appeal Qiled by proprietors of M/s Crescent Pharma against the Regional Tax OfQice (RTO-II) Lahore. Advisor Mian Munawar Ghafoor heard the appeal. During the proceedings, the counsel for the appellant argued that the RTO-II had failed to release the sales tax refund to the appellant for the last two years. He said that the RTO-II collected excessive taxes from the company during the last two years. The petitioner approached the ofQicials concerned several times for the release of refunds, but the RTO ofQicials failed to clear refunds after the pas-
SBp directs banks to respect pensioners tate Bank of Pakistan (SBP) has taken notice of unfair treatment of banks with senior citizens and pensions in providing banking facilities. In a circular issued, the SBP said that concerns have been raised by various quarters that some banks are not taking requisite care of senior citizens/pensioners/special persons especially regarding arrangement of separate counters for pensioners. “This matter has been viewed seriously,” the SBP added. The SBP in February 2014 issued directives to all banks and microfinance banks to extend priority services to senior citizens/ pensioners and special persons in availing banking facilities along with proper seating arrangements, drinking water, special assistance and due care. In this regard, the SBP directed all banks/MFBs again advised to follow the instructions issued on the subject matter from time to time in true letter and spirit. –CB Report
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sage of a reasonable time. Finally, the appellant decided to approach the FTO seeking intervention in this case. The counsel appealed the FTO advisor to direct the RTO-II to clear the refund claims. The counsel further said that delay in release of refunds put burden on taxpayers, adding that the RTO-II should make audit of the case and release the extra amount collected by it from the taxpayer. On the other hand, counsel for RTOII argued that the appellant has not submitted all record to the office for claiming refunds. If appellant provides the accurate record, the RTO-II will release refunds after a proper assessment, he added. After hearing the arguments from both sides, FTO advisor has accept the appeal for hearings and directed the parties to appear before him on said date to conclude arguments in the case.
customs I&I to hold auction of NDp goods, vehicles on march 27 LAHORE
SAJID NAwAZ
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irectorate of Customs Intelligence and Investigation (I&I) has announced to hold the auction of non-customs paid goods and vehicles on March 27. Sources told Customs Today that these goods and vehicles were lying in State Warehouse Allama Iqbal Town. The goods which will be placed for auction, include foreign origin generators, foreign origin grease, foreign origin tyres, foreign origin used radiator fans, used picture tubes, Sony Brand LED 42 inches, Sony Brand LED 3 sets, foreign origin red chillies, plastic tarpaulins and other goods. Sources said that all interested persons are advised to bring copy of the National Identity Card (CNIC). Any person without CNIC
will not be allowed to take part in the open bidding. Sources said that Director Customs Intelligence and Investigation Rubab Sikandar is quite optimistic that they will gen-
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erate a handsome revenue through auction of these goods and vehicles which will help them to achieve revenue collection target set for fiscal year 2017-18.
customs Appellate tribunal Rs11.7b wheat of last year yet to be sold dismisses case in vehicle seizure case he Punjab government has the Food Department has yet to sell
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he Customs Appellate Tribunal has dismissed a case in a seized Toyota Estima Aeras van case Qiled by deputy collector of Customs (Preventive) against the additional collector of Customs (Adjudication) Lahore and Tassawar Hussain, a resident of Mandi Bahauddin. Omer Arshed Hakeem, Member Judicial bench-II, heard the parties and announced the order with remarks that the impugned order was modiQied and dismissed to the extent after a complete hearing.
This tribunal orders the release of vehicle on the payment of duties and dismissed the case. The staff of the Customs Anti Smuggling had seized the vehicle under Customs Act 1969 after the driver failed to produce documents. After issuing a show cause notice, adjudication proceeding was concluded by the authority that seized vehicle released to the owner on the payment of duties and taxes. The Customs Department, being aggrieved from the order, Qiled the case. –CB Report
sought the details the of wheat stock available at 345 ofQicial and private godowns of Food Department in Gujranwala Division. OfQicials said that 3,610,000 bags of last year’s wheat yield were stocked at the godowns. The worth of the wheat yield was stated to be Rs11.71 billion. These bags of wheat were to be sold out till April 15, 2018. Only one month has left behind to achieve this wheat sale target. After the Qinal deadline, the sale of the last season’s wheat would be closed in this region, the ofQicials added. In Gujranwala Division,
out 1,430,000 bags of last year’s wheat worth Rs4.66 billion. According to the senior ofQicials of the Food Department, the Punjab government might set 432,000 tons wheat procurement target at the ofQicial procurement centres this year in Sialkot, Narowal, Gujrat, Mandi Bahaud Din, HaQizabad and Gujranwala districts. This season’s ofQicial wheat procurement will be started in Gujranwala region from April 15 as the government has Qixed the wheat supporting price of Rs.1300 per mound (40kg) wheat here, the ofQicials stated. –CB Report
NAB summons newly-appointed ambassador to US
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LAHORE
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he National Accountability Bureau (NAB) on Friday summoned on March 22 the newly appointed Pakistan’s Ambassador to the United States (US) Ali Jahangir Siddiqui for a probe into an embezzlement allegation.
According to NAB, Siddiqui has been accused of causing losses worth Rs 40 billion to various Qinancial and government institutions and will be questioned by a Combined Investigation Team (CIT) during his appearance before NAB. The NAB investigators will interrogate Siddiqui, as director of investment Qirm Azgard Nine Ltd, about selling shares of another company named
Agritech Ltd to numerous Qinancial and government institutions by Azgard Nine at higher prices than market price to settle the loan defaults of the company. Earlier on March 8, Prime Minister Shahid Khaqan Abbasi approved the appointment of Ali Jahangir Siddiqui, son of prominent businessman Jahangir Siddiqui, as Pakistan’s Ambassador to the United States.
Ali has been serving Abbasi as a special assistant, advising the prime minister on economic and business matters. Siddiqui is chairman of JS Bank Ltd and son of stockbrokerturned-banker Jahangir Siddiqui. He has previously been a director in Airblue which is also connected to the prime minister’s family — Lucky Cement, Azgard Nine, and numerous other companies.
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ISLAMABAD: The State Bank of Pakistan and the Federal Board of Revenue (FBR) have formally launched online tax collection system. This will allow the tax payers to pay FBR taxes and duties using Internet banking accounts or ATMs without the hassle of visiting banks. The system was launched by Haroon Akhtar, Special Advisor to Prime Minister on Revenue, in a simple ceremony held at FBR House. The ceremony was also attended by State Bank Governor Tariq Bajwa, FBR Chairman Tariq Pasha, chairman and CEO of 1Link and senior ofQicials of the SBP, FBR and Customs. The online tax collection system is live now and taxpayers can pay their taxes and duties from the convenience of their homes, ofQices or ATMs at any time seven days a week. The system is based on the 1Link Biller module, whereby FBR has been added as one of the Billers on the banks’ Bill Payment page. To pay the taxes and duties, the tax payers/importers will Qill their tax and custom duty payment details in FBR (IRIS) and Customs (WeBOC) to generate PSID (payment slip ID). The PSID so generated will then be used to access the
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tax/duty payment details on the banks’ webpage or ATM as the case may be. The taxpayer or their agent will then pay the tax by debiting his/her bank account for onward credit to the respective government account in SBP. The whole process is online and fully automated. On the occasion, Haroon Akhtar congratulated the State Bank of Pakistan, FBR and 1Link for initiating and completing this important project. He said that the online collection system provides much needed relief and convenience to the taxpayers and expressed optimism that the business community will take full advantage of the system and pay bulk of their taxes and duties using the online facility. He said as the system provides end to end solution right from Qiling of the tax return to payment of taxes to recording in government books of accounts and thus will bring efQiciency, safety and transparency in Government tax collection system. He added that the system will also be instrumental in improving Pakistan’s ranking in the World Bank’s ease of doing business index. The Governor SBP said that this project is in line with ‘SBP Vision 2020’, which envisages development of the robust payment system. The Government receipts and payments being the largest components of the country’s payment system, the
online collection of taxes will have a huge positive impact on the payment system efQiciency and effectiveness. He said that SBP is also working with the provincial governments to extend the coverage of online tax collection system to the provincial taxes and receipts as well. He also emphasized the need for automation of government payments and said that SBP would work with AGPR and other stakeholders to eliminate cheques from government payments and shift to the Direct Credit System. The chairman FBR said that this project is the result of effective collaboration between FBR and SBP and will go a long way in improving the government tax collection system. He said that tax payers’ facilitation is the core objective of the online collection system. The tax payers and business community paying taxes online would be able to have conQirmation of their tax payments on real time basis; the importers will be able to get their goods released immediately after payment of the taxes and duties. He said that the online collection system will run in parallel with the cash/pay order based system and the tax payers will have the option to use the system of their respective choice and preference for payment of taxes.
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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
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possible hike in electricity, gas taris
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he bubble of the so-called macroeconomic stability has burst as the government has no other option left but to listen to the directions of the International Monetary Fund and immediately increase electricity and gas prices. The government has also assured the fund officials that it will scrutinise the foreign-funded projects to reduce the risks to fiscal and external accounts. The IMF has already expressed concern over the debt profile of the country which is going to reach nearly 70 percent of the gross domestic product but the government officials still expect positive outcome of the policy measures. Reportedly during the negotiations between Islamabad and the fund managers, the issues of structural reforms and lossmaking public sector organizations were also discussed without reaching a conclusion at the end. The foreign financial institutions had times and again reminded the government that structural reforms are not necessary, but indispensible. However, the matter is still pending and the government is going to complete its tenure this year. The real worth of the foreign exchange reserves is lower than one billion dollars and this money is not enough for a few months import bill. In this situation, probably only one option has been left and that is to increase electricity and gas prices. The government has assured the fund administration that it fully understands the vulnerabilities of the external sector, but has the capacity of debt servicing. However, the policymakers only relied on the depreciation of the rupee which had failed to restore foreign exchange reserves and minimize the trade deficit. When debt servicing is turning into a snowball, it will be strange to bank on the policy measures and expect to boost confidence of the foreign investors. There is a need to strengthen fiscal discipline by reducing debt-related vulnerabilities and control the current account deficit. However, the IMF has recommended the government to take additional measures and contain budget deficit to 5 percent of the gross domestic product. The mandate of the current government is going to end this year and the economy has been oscillated between hope and despair since 2013.
economic optimism and realism D LAHORE
DR AFtAB AFZAL
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r Miftah Ismail, Adviser to Prime Minister on Finance, Revenue and Economic Affairs, has claimed that the national economy is in a good shape and will grow by six percent this year, which will be the highest growth rate in 10 years. However, in its post-programme monitoring report, the International Monetary Fund has projected the external debt of Pakistan at $103.4 billion by June 2019, up from expected level of $93.3 billion at the end of the current fiscal year. It has also warned that acquisition of further loans could increase chal-
lenges and risks to sustainability of debts. Dr Ismail based his good shape of economy rhetoric on remittances sent by the expatriate Pakistanis and foreign direct investments. The government has no role in the two as overseas Pakistanis are obliged to send money to their families in Pakistan and the size of foreign direct investment is meaningless as compared to the FDIs in other countries of the region. It is the habit of the government officials to take the credit of a good work done by others. As a matter of fact, the country’s public debts have already crossed the limits prescribed in the revised Fiscal Responsibility and Debt Limitation Act.
The IMF report has pointed out serious complications faced by the economy as the Pakistan Muslim League-Nawaz government has failed to take concrete measures to maintain fiscal discipline but went on borrowing spree during the last four and a half years of its tenure. The government tried to accumulate foreign exchange reserves on borrowed money which it took from this and that bank on highest markup rates. The mandate of this government is ending this year and the matter of fixing the responsibility of flawed economic policies will go in abeyance. The government has mortgaged every soul of the nation to international donor agen-
cies. According to the IMF, the rising current account deficit and external debt servicing will force the government to seek higher external financing the volume of which could reach $24.5 billion by June this year and around $27 billion by the end of fiscal year 2018-19. If trend of external financing continues, the government will have to seek $45 billion after five years. It is difficult to understand the strategy of the political parties which are locked in horn with one another to grab the power. Ironically, none of the political parties have any development agenda, economic plan or at least a debt retirement programme, but who cares.
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At last IDP computerized weighbridge to be operational by end of March ISLAMABAD: The long awaited Computerized Weighbridge System at the Islamabad Dry Port will get functional till the end of March FY17-18. According to details explained by Wajid Zaman, Deputy Collector, Islamabad Dry Port (IDP), that work is in progress to build the said facility under the roof of IDP. He added that importers are pleased by this long awaited facility which will minimize the cost and time. The use of weighbridge for weighing containers reached the IDP before examination, he said. This facility will provide a handsome amount into the exchequer of Pakistan Railways, Deputy Collector said. Zaman told CT that Pakistan Railways was not showing any interest in building the infrastructure including weighbridge at the Islamabad Customs Dry Port according to the international standard.
SRB collects Rs54.2 b in 8 months with 16% growth KARACHI
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indh Revenue Board (SRB) collected Rs54.2 billion in the first eight months of the current fiscal year of 2017-18 as compared to Rs46.6 billion in the corresponding period of the last fiscal year, posting a growth of 16.12 percent, official data showed. The provincial revenue board is, however, facing an uphill task of collecting nearly Rs46 billion in the remaining last four months of the current fiscal year in order to achieve the annual target of Rs100 billion. Officials at the SRB said the revenue collection has so far been in line with the expectations and the board hoped to achieve the target through measures planned for the last quarter. A senior official said the board planned to pursue cases in tribunals and courts for early their disposal as substantial amount is stuck
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Thursday March 22, 2018
National
govt not in favour of counter-productive taxation, says Haroon Akhtar S
ISLAMABAD
m FAIZAN
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pecial Assistant to Prime Minister on Revenue and Federal Minister Senator Haroon Akhtar Khan has said that the government is willing to review and adjust high taxation rates in case they are found to be stymieing growth of any sector. “The government is not in favour of counter-productive taxation as our prime objective is to promote growth and help businesses Qlourish and contribute more revenue to the national exchequer,” he said while talking to a delegation of the American Business Council of Pakistan which called on him at his ofQice in Islamabad. The minister told the delegation that the government valued the contribution made by multinationals to growth of revenue and economy and the downward revision of corporate tax rates from the previous 35 to the current 30 per cent was indicative of the government desire to further facilitate the corporate sector. “We are reviewing proposals and recommendations to further facilitate this sector in the
upcoming budget which would be pro-investment and pro-businessman in nature,” he added. Earlier, Kamran Nishat, president of the American Business Council of Pak-
istan, said the investment environment had considerably improved in Pakistan as indicated by recent perception surveys, indicating marked improvement in law and
order and ease of doing business. He also shared with the Minister a set of proposals and recommendations for further boosting economic and revenue growth.
customs unearths racket of betel nuts smugglers in the lingering cases. “Besides, the SRB has also started campaign for the recovery of outstanding amount from registered services providers,” the official said. In this connection, registrations of numerous high-volume corporate entities have been suspended in order to ensure compliance of returns filing and payment of outstanding taxes, the official added. The official denied that Sindh government was planning waivers of penalty and default surcharge to encourage the taxpayers to pay off their liabilities. “However, if such immunity is planned then it would be a decision of the provincial government.”
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he Pakistan Customs has unearthed a racket of betel nuts smugglers who got cleared the consignments of betel nuts under the garb of iron and steel coils. At least four Karachi-based traders were using importers of other cities for smuggling of betel nuts as the legal import of betel nuts had been subjected to completion of necessary documentation and certiQicates. The suspects removed the betel nuts from containers and Qilled them with the iron/steel coils en-route to Lahore Dry Port from Karachi on transshipment permits. The network comprised Jameel Ali, owner of M/s Ajmair Impex, Lahore, Directors of M/s Airotor
Transport and Logistics, Karachi the bonded career, Directors of M/s Modern Shipping Agencies Karachi, M/s Sky Shipping Lines LLC Dubai, UAE, and four traders of betel nuts from Karachi. The four traders are identiQied as Abdul Mueez Bawani, Azeez Ahmed, Owais Rasheed and ShaQiq and the Customs ofQicials have Qiled an FIR against them. M/s Ajmair Impex Lahore imported the consignment, comprising on two containers registration numbers BAXU-2588107 and MAEU 7813519 were arrived from Dubai on 14th February and TP for Lahore Dry port was Qiled on 23rd February, 2018. The consignment was declared as galvanized plan sheets, got cleared from Customs Collectorate Appraisement West for Lahore by the private bonded career company M/s Airo-
tor Transport and Logistics Ltd, Clifton Karachi on vehicles numbers E2082 and TKA-727. According to the FIR number 03/2018 registered by Collectorate of Customs Appraisement dry port Mughalpura, Lahore the importer and bonded career with the assistance of other accused smuggled the betel nuts under the garb of galvanized plan sheets and removed the betel nuts from the containers during transshipment to Lahore and supplied the smuggled betel nuts to Karachi. This is the second FIR against the M/s Ajmair Impex during last two weeks as ten days ago it was booked when a consignment of the smuggled betel nuts was intercepted by the Customs Appraisement East Karachi and R&D team of East seized 25.250 MT betel nuts smuggled by the Lahore based
company under the garb of galvanized plain sheets. It is pertinent to mention that price of betel nuts has raised from 300 rupees per kilogram to 2500 rupees per kilogram due to the restriction on its import and till now approximately over 200 containers of betel nuts are stopped at all ports and containers terminals of Karachi awaiting for clearance. Apex court also directed FBR’s and customs ofQicials to ensure that low quality and hazardous betel nuts could not be supplied into the country as the youth of all major cities of Pakistan specially Karachi bearing and suffering all the negative consequences of the use of these betel nuts in great context as mouth cancer on rise in youngster for using Gutka, Mainpuri, Mawa and other products of low quality and hazardous betel nuts.
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Appraisement East uncovers tax evasion of Rs08m in clearance of electronics Thursday March 22, 2018
National customs confiscates 60 smuggling split air-conditioners & parts
KARACHI: The Customs Collectorate Appraisement East has unearthed a tax evasion of Rs08million in the clearance of new and used electronic items including juicer blenders, TV sets, dierent types of car tapes, cable-wires and other articles imported by M/s Farooqi Electronics Karachi. Sources told CT that Collector Appraisement East Saeed Akram directed the R&D Section to verify the post-clearance consignment of importer M/s Farooqi Electronics Karachi.
Surriya set to revise Valuation Ruling No: 902/2016 on April 24
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he Customs Collectorate Gwadar has impounded contraband split air-conditioners and their parts worth Rs05million. Sources told CT that Deputy Collector Gwadar constituted a team of the Customs AntiSmuggling Organization (ASO) under the supervision of Customs Preventive Inspector Waseem Ahmed and others. The team, during a search operation in Jewani area, intercepted a truck bearing registration QLJ-5732 which was going out of the city. During the checking, the customs team seized 60 pieces of US made nonduty-paid air-conditioners and their parts valued at Rs05million. The customs team arrested three smugglers involved in the smuggling and registered an FIR against the accused and started investigations. Sources told CT that Deputy Collector Gwadar said that operation against smuggling will be continued.
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online vehicle transfer on the cards nline biometric verification system for the transfer of vehicles is being introduced in motor branches of 36 districts of Punjab. These branches will be linked together and online verification system will be introduced from 1st of May this year where after no application for transfer of vehicle will be accepted. A total of 500 people will be recruited purely on merits in Excise and Taxation Department, said Ashraf Gondal, the director general of Excise and Taxation Department Punjab. He was addressing media men after his arrival here. He said that senior citizens upon request will be provided with special facility of bio metric verification at their residences. –CB Report
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he Directorate General, Customs Valuation, Director General Surriya Ahmed Butt has decided to revise the Valuation Ruling No: 902 /2016 on April 24, 2018, it is learnt. Surriya Butt has said that the department was reviewing suggestions from various importers to set new prices of low and brand shoes, slippers, sandals, Chappals and joggers. She said that some valuations, which were issued in 2016, were being reviewed from the beginning. Moreover, the valuations will be set in view of the rising prices in the international market. Sources told CT that a petition was filed be-
fore the Customs Valuation in which change in prices of new prices of low and brand shoes, slip-
pers, sandals, Chappals and joggers was requested. Sources said that the Valuation Ruling No: 902/2016
was issued on August 8, 2016. A meeting was held with the stakeholders on March 13, 2018.
Quetta customs seizes 6,280 cartons of imported cigarettes from passenger bus T
QUETTA
tARIQ DeRYA
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he Anti-Smuggling Organization Quetta conQiscated various brands of 6,280 cartons of foreign origin cigarettes priced at Rs4.2million from a passenger bus coming from Quetta towards Karachi. The bus was intercepted at the Lakpass check-post. The driver Qled the scene. According to details given by Ashraf Ali, Collector, Model Customs Collectorate Quetta, on a tipoff, that imported cigarettes will be smuggled from Quetta into Karachi through a passenger buss. Following the secret information, the staff of Lakpass check-post started strict vigilance at the check-post with the assistance of other law enforcement agencies. The customs staff signaled the bus to stop, but the driver of the
bus bearing registration No: BSC906 sped up to bypass the checkpost of Lakpassed. It was disclosed that driver of the vehicle, with the help of other drivers of vehicles, blocked the road and created a law
and order. The Levies and FC staff took action and cleared the road. The collector told CT that, due to a rush on the road, the driver escaped while the bus was brought to the Customs Check-Post. After a
thorough search, the staff recovered 1180 cartons (each carton contained 10 packs) of Marlboro Gold, 920 cartons of Pine Light and 240 cartons of Dunhill from the different parts of the bus.
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Customs due to destroy 30000kg Indian smuggled health-harmful banana ISLAMABAD: The MCC Islamabad will destroy 30,000 kilogram of confiscated Indian origin banana. The Anti-Smuggling Organization (ASO) Islamabad impounded a huge quantity of Indian origin fresh banana during three different seizures. Three offending vehicles such as Hino truck bearing registration No: Z-4273, Nissan truck No: TKJ-634 and Isuzu truck No: C2361 were intercepted respectively on Kohala Road while they were coming from Azad Jammu and Kashmir (AJK) to Rawalpindi. The samples of bananas were sent for laboratory test but the laboratory refused to provide reports due to their smuggling status. it was added that the seized banana was supposed to be harmful for human health.
NAB orders complaint verification against Leghari ISLAMABAD
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he National Accountability Bureau Chairman Justice (retired) Javed Iqbal has ordered complaint verification against Member National Assembly Sardar Jaffar Khan Leghari over alleged occupation of 2,425 kanal land in Chandia. The orders were given at a high-level meeting held at the NAB headquarters. The NAB chairman also ordered complaint verification against the Khyber-Pakhtunkhwa former chief secretary Amjad Ali Khan in a case of illegal award of contract of Korag Kanal project and cutting of precious trees. He also ordered complaint verification against special assistants to CM Sindh Phlag Mill and Imtiaz Elaj over allegations of possessing assets beyond known sources of income. The NAB chairman directed the officials to work
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for the elimination of corruption as their national responsibility. He directed the NAB officials to conclude verifications, inquiries and investigations within the prescribed timeframe. The NAB chairman said that the anti-graft body was vehemently adhering to the policy of “accountability for all”. Meanwhile, The All Pakistan Newspaper Society has asked the government to release the biggest advertiser Inaam Akbar alongside several others arrested by NAB on bail bonds and continue with investigations against them in order to steer the newspaper industry out of crisis. The All Pakistan Newspaper Society, (APNS) in its meeting on Friday chaired by Chairman Khushnood Ali Khan asked the government and the NAB authorities to involve such people in the investigations against the advertisers who understand the media issues as well have sound knowledge of how the advertising agencies and the media houses operate.
National
customs Appellate tribunal accepts appeal in imported cloth case
SHc issues notices to customs authorities on petition filed by m/s Haji ehsanullah KARACHI
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he Sindh High Court (SHC) has issued notices to the Customs Department and deputy attorney on a constitutional petition filed by M/s Haji Ehsanullah, proprietor of M/s Ehsanullah & Company, seeking release of his imported old/ used Hino/Nissan transit concrete mixer lorries. While hearing of petition a two-member bench also directed them to file their respective para wise comments on the next date of hearing. Earlier, counsel for the petitioner stated that he imported old/ used Hino/Nissan transit concrete mixer lorries and filed Goods Declaration (GDs) as per law for clearance, which were seized by the Customs Department on the allegations that the petitioner violated the import policy. He submitted that the petitioner imported these vehicles as per law and other importers were also importing the same, therefore, seizing the same was illegal, mala fide and unlawful. Citing Secretary Ministry of Finance, Chairman Federal Board of Revenue, Customs Appellate Tribunal, Collector of Customs Adjudication Hyderabad as respondents, petitioner pleaded the court to declare that act of the respondents as illegal, mala fide and arbitrary.
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ustoms Appellate Tribunal has accepted the appeal Qiled by Tariq Mehmood, a resident of Mianwali, against the Collector of Customs (Adjudication) Faisalabad and others. Member Technical bench-II Imran Tariq heard the case in details and scrutinized the record produced by the parties. The tribunal member decided the case with remarks that this tribunal had not found collusion of the owner of vehicle so the appeal was accepted. According to the details, a team of Directorate of Intelligence and Investigation-FBR Faisalabad intercepted a trailer. The driver informed that said trailer was loaded with foreign origin cloth. On demand, driver produce import document showing Nylon mesh net fabrics weighing 10116 kilograms. The said trailer was brought in the Customs Intelligence and Investigation ofQice for further examination under the section 2(kk) of Customs Act 1969. After the examination of vehicle and loaded cloths the adjudication proceeding were culminated and Order in Original
Thursday March 22, 2018
was passed with remarks that goods are conQiscate out rightly and also impose penalty of Rs 50,000. Being aggrieved from the order, appellant Qiled the appeal before the Customs Appellate Tribunal on the grounds that the importer has already paid the duties and taxes as per the laws, Order in Original passed in mechanical fashion and without the appreciation of laws.
Adding more that the seizure of imported goods by the detecting agency and its outright conQiscation by the seizing agency is unwarranted, unjustiQied and unlawful and said ONO is liable to set aside. On the other side, the respondent department denied all allegations. After hearing the arguments Customs Appellate Tribunal has accepted the appeal of importer.
customs officers barred from making direct communication
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he Federal Board of Revenue (FBR) urged Customs and Inland Revenue field formations to refrain from direct communication with Pakistan Revenue Automation Limited (PRAL) and inform IT Wing of the board for the resolution of issues. It was observed that various officers from the FBR were directly communicating with PRAL for IT requirements and issues which pertained to exemption certificates, registra-
tion and changes in profiles (income tax/sales tax), de-registration and other-related matters. Such direct communication results in confusion regarding the exact needs of the offices concerned which leads to delay in the completion of projects. This direct communication is also compelling PRAL to make ad-hoc arrangements to resolve the issue rather than to find a permanent solution. In order to streamline the working of PRAL and ensure that all the requirements and issues of filed officers are handled properly, you are re-
quested to route all communication with PRAL regarding any modification/ development in software and fixing issues through IT Wing. The communication should clearly state the requirement in detail / format, so that there is no gap between the desired and delivered results. The officers that would be available for early resolution of issues included Chief (BD-IT) Zain-ul-Abidin Sahi in the matter of software/ IRIS related issues, Second Secretary (BD-IT) Kashif Younas in the matter of software/ IRIS related issues and Chief (IT)
Syeda Adeela Bukhari in the matter of hardware/IT operations related issues and second Secretary (IT-I) Saba Ijaz in the matter of MIS related issues. The officers were told to apprise the IT Wing in writing if they have any complaints regarding the current status of ongoing IT projects of their office, so that issues can be efficiently resolves. The Federal Board of Revenue also urged all the chief commissioner and chief collector to pass the instructions to officers working under their administration control.
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World Customs
Currency markets send a warning on US economy
WASHING TON: One of the many surprising aspects of financial market performance over the past year has been the weak performance of the US dollar, which has fallen by close to 10 per cent on a trade weighted basis and by more than 10 per cent against the euro. This has occurred despite a variety of factors that might have been expected to push the dollar up. They include upwards revisions in economic forecasts, expectation of monetary tightening, rising real and nominal long-term interest rates.
Thursday March 22, 2018
Small cars zoom ahead after Sri Lanka budget
Health costs Australian economy $40 billion
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inance Minister Mangala Samaraweera’s move to slash duty has encouraged the import of smaller cars which have for the Qirst time out numbered three wheelers by three to one. Samaraweera’s maiden budget in November rationalised the import tax structure, reducing customs duties on smaller cars and electrically powered vehicles. There was no surge of electric cars despite a one million rupee duty reduction in the smaller electric cars such as the Nissan Leaf, but smaller hybrid cars have Qlooded the market. OfQicial Qigures collated by JB Securities showed that 5,306 cars were registered in January, up from 3,394 in the previous month and more than a one third jump compared to January 2017.
Uk tax agency tightening offshore tax evaders K taxpayers that the deadline for disclosing offshore assets before tougher penalties are introduced is approaching, and has announced new proposals to provide more time for it to investigate someone who has failed to declare the right amount of tax. New, tougher penalties are to take effect from October 1, 2018. The Director General for Customer Strategy and Tax Design, David Richardson, said: “Everyone has to pay their tax and the vast majority of people and businesses already do. It’s on their behalf that we are cracking down on offshore tax cheats.” HMRC has warned that the heightened penalties may impact also those who have earned income overseas but were unaware that they must disclose such. –CB Report
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Within the car category, vehicles with an engine capacity of less than 1,000 cubic centimetres accounted for about 85 percent of the total, or 4,510 cars compared to 1,543 three wheelers registered in January. The statistics show that small cars, especially the 660-cc Suzuki Wagon R and its variants are dominating the new registrations. For every three wheeler which got on the roads in January, three small
cars joined the trafQic. This is the Qirst time that smaller cars have overtaken three wheelers by such a high margin although last year there were several months during which slightly more cars got on the streets compared to tuk-tuks. The price of higher-end Suzuki Hustler and Spacia models dropped by nearly a million rupees while more popular Wagon R was also substantially cheaper after the budget.
more evidence of US economic tailwinds from tax cuts to jobs
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here’s more evidence now that US economic tailwinds highlighted this week by Federal Reserve Chairman Jerome Powell are gathering strength. Reports out Thursday showed recent tax cuts buoyed Americans’ spending power in January, unemployment claims fell last week to an almost Qive-decade low and factories expanded in February at the fastest rate since 2004. In addition, a key
price gauge watched by the Fed rose in January by the most in a year. The update on the economy comes as Powell faced lawmakers again following comments earlier in the week that “some of the headwinds the US economy faced in previous years have turned into tailwinds.” Fatter wallets and a solid labour market signal inQlation-adjusted consumer spending may pick up after falling in January. –CB Report
ealth has become a $164 billion drag on the economy in the past year alone, dwarQing the potential beneQits from the Turnbull government’s proposed company tax cuts. For the first time, the cost to the Australian economy of obesity and mental health propelled the total cost of declining health outcomes to $40 billion per quarter, according to the latest Lateral Economics wellbeing index commissioned by Fairfax Media. Treasurer Scott Morrison’s $65 billion company tax cuts, which remain trapped in the Senate, would provide an annual boost of $20 billion to the economy by 2026, modelling by former Treasury ofQicial Chris Richardson at Deloitte Access Economics shows. Meanwhile, The end of Betfair in Australia has been mooted as a possible outcome of the implementa-
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tion of a widespread Punters’ Tax in Australia, according to one industry expert. The Punters’ Tax, or point of consumption tax, is set to be rolled out by all states in Australia in the coming two years, with South Australia already charging bookmakers a 15 per cent tax on proQit on customers in that state and Western Australia to follow suit in 2019. The 15 per cent tax rate has been widely condemned as excessive by the industry, but the prospect of a turnover tax model in New South Wales is far worse with the likely demise of betting exchange Betfair. Betfair acts as a key lubricant to the market in Australia, giving increased liquidity and ensuring bookmakers offer fair and reasonable prices. But Richard Irvine, who has over 20 years’ experience in the bookmaking and betting industry, believes the exchange would be unable to sustain its business model in Australia if a turnover tax is introduced in Australia’s biggest state.
Australian tax office targeting profits he Australian Tax OfQice (ATO) has sent out a warning to people that have been making proQits on cryptocurrency trades. In particular, the ATO will be using new anti-money laundering legislation to crack down on tax-cheating bitcoin traders. The director of tax communications at H&R Block, Mark Chapman told reporters that cryptocurrencies are “an area where you should get professional advice because the ATO’s guidelines are very complex”. As well as focusing on ensuring the ATO collects its pound of Qlesh, the ATO will carry out data-matching to investigate
cryptocurrency traders by using the established 100-point identiQication system. With concerns over how criminals might be using cryptocurrencies to launder money, as well as concerns over tax evasion, it’s not surprising the government is becoming increasingly focused on the Qlow of wealth through these unregulated, opaque markets. So, while newsagents and Brisbane Airport are happy to get on the bitcoin bandwagon, the government is playing catch-up. Last year, the ATO issued some advice regarding the tax treatment of cryptocurrencies in Australia. –CB Report
canada budget 2018 sales and excise tax proposals
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OTTAWA
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he 2018 Federal Budget contains a number of excise and sales tax (GST/HST) proposals and amendments that may be relevant to registrants and practitioners. Each of the proposals below deals with issues that may re-
quire significant planning or structuring considerations. Please do not hesitate to contact one of our team members for further discussion or analysis with respect to the proposals in Budget 2018 the supply by the general partner to the investment limited partnership that includes the service is deemed to have been made otherwise than in the course of the investment
limited partnership’s activities. A proposed definition of “Management or administrative service” is broadly defined under subsection 123(1) of the ETA to include an asset management service, which is further defined to encompass most activities performed by a GP, such as managing, researching or analyzing the assets or liabilities of the ILP, or determining which assets
or liabilities to acquire or dispose of. As a result, GPs will have to charge and collect GST/HST on the fair market value of any management or administrative services performed for the ILP and will have to register for GST/HST purposes. These consultations are expected to be the first step towards the ultimate reduction of the scope of these rules.
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Maersk: Canada’s trade growth to beat US OTTAWA: Maersk Line’s latest North America Trade Report, released last week, predicts that Canada’s imports and exports will grow by seven percent in 2018, higher than that of the U.S. which the company predicts will grow by up to four percent. Canada is expected to benefit from its first full year of free trade with the European Union after securing the Comprehensive Economic and Trade Agreement (CETA) at the end of last September. Added to that, Canada is moving closer to signing the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) involving 11 nations – Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam – accounting for 15.8 percent .
turkish exports up 10.7 percent urkey’s exports in January totaled around $12.5 billion, a 10.7 percent rise compared with the same month in 2017, the Turkish Statistical Institute (TurkStat) announced. Turkish imports climbed 38 percent to over $21.5 billion, amounting to a foreign trade deficit of nearly $9.7 billion over the same period, increasing by 108.8 percent compared to same month last year, according to provisional data by TurkStat and the Customs and Trade Ministry. Official data showed the percentage of imports covered by exports in January was 57.9, down from 72.1 percent last January. The country’s foreign trade volume reached almost $34 billion in January this year, an annual rise of 26 percent, according to the data. Exports to the EU28 countries, the country’s main trading partner, climbed 23.1 percent to $5.2 billion. The proportion of EU countries was 52.3 percent
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Ports & Shipping
ports & Shipping ministry to conduct study for potential new ports ISLAMABAD
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n the wake of important role of maritime transportation in the national economy, the Ministry of Ports and Shipping (Maritime) has planned to carry out a study for potential sites for new ports in the country. The study will identify the sites and details. Presently, Pakistan has three sea ports namely Karachi Port, Muhammad Bin Qasim Port and Gwadar Port. Maritime transport is the backbone of global trade and the global economy. The shipping industry has played an important role in the dramatic improvements in the living standards of the people and has taken millions of them out of acute poverty in recent years. It will be just as critical for the achievement of the 2030 Agenda for Sustainable Development, the plan agreed by all global leaders last year for people, peace, planet prosperity and partnership.
Maritime transport is the backbone of globalization and lies at the heart of cross-border transport networks that support supply chains and enable international trade. The importance of transport has been recognized in the Sustainable Development Goals, which have integrated infrastructure and transport as an important consideration. Sources told Customs Today that planning for conduct of a study for the establishment of a
new port was on preliminary stages and it would take ample time for its execution. However, in the conduct of study, hopefully foreign surveying companies and Qirms will be hired to make the study somewhat effective and feasible. To a question about the signiQicance of maritime transportation in the world trade, the source said world seaborne trade volumes surpassed 10 billion tons in 2015 as shipments expanded by 2.1%, a pace notably slower than the historical average.
Thursday March 22, 2018
Uk’s export economy is at its strongest point since 2000 eathrow’s export climate index tracks factors including the consumer confidence of the UK’s main trade partners by their share of UK exports; effective exchange rate and purchasing managers index for UK new manufacturing export orders. In figures that will bolster Brexiteers, the value of non-EU export goods increased by 150 per cent, with Heathrow holding a 30 per cent share in this cargo. Some £48.9bn worth of UK exports that were destined for outside the EU and Switzerland passed through Heathrow. Consumer confidence among the UK’s trading partner nations is on the up thanks to government spending drives in the US and China which continue to enjoy steady growth. The impact of rising oil prices and the increase in the value of the pound in the last three months of 2017 was also cancelled out by UK producers’ confidence in future trade. Heathrow chief executive John Holland-Kaye said: “Now more than ever, the UK needs to secure its status as an outward-looking global trading nation. –CB Report
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malaysian exporters growing fast on tmail global platform in January 2018, while it was 47 percent in January 2017,” TurkStat said. Germany was the top export market with $1.34 billion, a 10.8 percent share of total exports, followed by the U.K with $747 million, Italy with $742 million, and Iraq with $639 million. In the same period, Turkey imported the most from China ($2.18 billion), Russia ($2.05 billion), Germany ($1.63 billion), and the U.S. ($1.12 billion). The data also indicated that the ratio of manufacturing industry products in total exports was 92.4 percent in January, while the ratio of high-technology products in manufacturing industries was 3.3 percent. The ratio of medium- or high-technology products in manufacturing industries’ products was 35.2 percent. –CB Report
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alaysia is among the fastestgrowing exporters selling into China’s Tmall Global, a cross-border business-toconsumer (B2C) retail platform of Alibaba Group’s Tmall.com. The recently released 2017 Tmall Global Annual Consumers Report showed that Malaysia was the seventh fastest-growing exporter in Tmall Global after niche countries such as Greece, Chile, Poland, Hungary, Spain, Brazil, Austria, Israel, and Denmark, measured by year-on-year growth. “The most popular Malaysian product categories are food products, coffee, and mother and baby products such as strollers and prams,” it said in a statement today. Niche countries are countries whose sales on
Tmall Global accounted for at least 0.02 per cent of total sales on the online platform. Meanwhile, the report said that Tmall Global maintained its position as the largest B2C e-commerce platform for imported products in China, with a market share of 27.6 per cent in the fourth quarter of 2017. Meanwhile, Malaysian property market is expected to remain weak in the Qirst half of this year amid Qlagging demand ahead of the upcoming general election, an independent property consultant said. Knight Frank Malaysia, a unit of London-based Knight Frank LLP, said the property market is expected to continue its lacklustre momentum from the second half of last year which as the performance was derailed by oversupplied position in the main sub-sectors such as highend residential, ofQice and retail. “The second half of 2017 con-
tinued to see developers shifting their focus to the middle-income and affordable housing segments to cater to a wider target catchment amid challenges in the high-end market,” managing director Sarkunan Subramaniam said. He said there was also mounting pressures on occupancy and rental levels for tenant-favoured office market as the increasing high supply pipeline continued to overshadow low absorption. It said that more developers diversified their target market to other countries/ overseas territories such as Singapore, Indonesia, Hong Kong and Taiwan following China’s capital control. It added that the 50% tax exemption on rental income amounting up to RM2,000 a month as announced under Budget 2018 might also improved demand for this category of investment properties. The report said office market for
Kuala Lumpur and Selangor continued to self-correct as increasing supply shadowed low absorption. “Negative absorption of Kuala Lumpur office space following downsizing and consolidation of the oil and gas and its related sectors,” it said. However, it said the demand for Multimedia Super Corridor certified space remained resilient. The report also highlighted the expansion of net lettable area (NLA) of retail spaces in the Klang Valley by approximately 72,464 square metres brought the cumulative supply to approximately 5.33 million square metres, or about 0.65 square metre per person, as one of the highest in the region. On Penang’s property market, the report said the state’s office market remained relatively healthy with both occupancy rates and rentals holding steady.
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SBP directs banks to respect pensioners Thursday March 22, 2018
Business
KARACHI: State Bank of Pakistan (SBP) has taken notice of unfair treatment of banks with senior citizens and pensions in providing banking facilities. In a circular issued on Friday, the SBP said that concerns have been raised by various quarters that some banks are not taking requisite care of senior citizens/pensioners/special persons especially regarding arrangement of separate counters for pensioners. “This matter has been viewed seriously,” the SBP added.
Sindh to hand over property tax collection to Dmcs KARACHI
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he Sindh government has decided to devolve property tax collection to the district municipal corporations (DMC), for which work on maintaining a proper database and building the capacity of local bodies staff will start soon. Chief Minister Murad Ali Shah made this decision during a meeting with a World Bank team comprising economist Yoonhee Kim, urban development specialist Shoaib Athar and Takaaki Masaki, public sector specialist Irum Touqeer and others. The CM was assisted by Local
over 11.5m cotton bales reach ginneries MULTAN
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Government Minister Jam Khan Shoro, Karachi Mayor Wasim Akhtar, Principal Secretary to the CM Sohail Rajput, Excise Secretary Haleem Shaikh, DMC chaipersons
Accountability court awards 7-yr RI to Ayaz-ul-Haq in fake business
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ver 11.5 million bales of seed cotton (phutti) have reached ginneries across Pakistan till Mar 2018, registering an increase of 7.74 per cent compared with the corresponding period of last year. According to a fortnightly report of Pakistan Cotton Ginners Association (PCGA) released to the media here Sunday, out of total arrivals, 11,540,515 bales have undergone the ginning process. Arrivals in Punjab were recorded at just over 7.2 million or 7,298,829 bales recording a percentage increase of 5.24 per cent.
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and others. Shah informed the World Bank delegation about the new property survey in Sukkur. According to the old survey, there were only 35,000 households registered
for property tax but the fresh survey revealed a Qigure of 65,000 houses on which property tax should be levied, the meeting was told. The World Bank team said the current collection of property tax in Sindh was Rs2 billion, whereas there was potential to collect Rs7.2 billion in taxes. Citing examples from India, the team said Chennai collected $90 million in property tax in 2015-16, Indian Hyderabad collected $179 million, Bangalore collected $201 million and Mumbai collected $373 million. “These Qigures are enough to assess how much Karachi can collect in property tax,” the World Bank delegation said. It was pointed out during the meeting that the management of property tax was based on old system, which needed to be replaced.
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PESHAWAR
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ccountability Court Peshawar in reference Qiled by NAB Khyber Pakhtunkhwa convicted accused Ayaz-ul-Haq, of Battagram for a term of 7 year Rigorous Imprisonment (RI) and imposed a Qine of Rs. 15 Million in a corruption case pertaining to cheating public at large in pretext of fake Muddaraba Business. During the course of investigation it was revealed that the accused person lured general public
to invest their hard earned money in fake Muddaraba Business on the promise that they would be paid huge proQit on their investment. The accused person after few months not only stopped paying profits but also refused to pay back orig-
inal invested money of innocent people and disappeared from the scene. The Accountability Court No. 3 Peshawar after taking cognizance of the case proceeded with the trial. After conclusion of trial, the learned trial convicted the accused. It is pertinent to mentioning here that in light of vision of the Chairman NAB Justice ® Javed Iqbal to provide relief to general public through accountability regime, NAB KP is actively investigating several cases of cheating public at large in KP. General Public is advised to be wary of fake Mudaraba/Musharka and other business scams.
FIA raids pakistan Sports Board headquarters ISLAMABAD
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Federal Investigation Agency (FIA) team has raided Pakistan Sports Board headquarters and confiscated record for its ongoing inquiry into the alleged corruption and misuse of powers in Pakistan Sports Board Sources confirmed that FIA Gujranwala circle had time and again directed the PSB to provide all details and files to the FIA . After getting frustrated from lukewarm response from PSB officials, who were not cooperating with the agency, an FIA team visited the PSB offices and spent the whole day there and took the record with them. According to sources, the PSB officials had been failed to provide record because former DG Dr Akhtar Ganjera had kept the entire record in his personal possession and was using different tactics to get an extension in his tenure as Ganjera was highly optimistic about getting charge again with the help of IPC Minister Mian Riaz Hussian Pirzada and his summery of two years extension was also pending with PM office. Sources disclosed that Ganjera, despite being retired form services not only kept on coming to his former office, but also signed a lot of documents in backdates and huge payments were also made to different contractors.
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NAB to investigate Sindh land scam KARACHI
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he National Accountability Bureau (NAB) has decided to conduct four investigations after an inquiry against Sindh government functionaries and others for illegally allotting 307 acres of land to various beneQiciaries. The decision was made in a regional board meeting held under the
Chairmanship of Director General of NAB Karachi Mohammad Altaf Bawany at the NAB Karachi, said a statement here. The board decided to make a recommendation to the NAB chairman to authorise the NAB Karachi four investigations after an inquiry concluded against the Sindh government functionaries and others regarding re-alignment or construction of Malir River Bund for the purpose of housing societies and illegal allotment of land from within
Malir River bed. The inquiry recommended for the investigations which contain prima facie allegations of misuse of authority allegedly committed by 20 government ofQicials including senior ofQicers of Chief Secretary level and below along with various beneQiciaries and front-men. Preliminary calculation of loss to the national exchequer is calculated Rs.15.7 billion. The meeting was attended by Directors of three Investigation Wings and respective Investi-
gating Teams of cases concerned. After thorough consultation some decisions were made which includes an investigation which was approved for Qiling of Reference against ofQicers of District Accounts OfQice Dadu and others on the charges of embezzlement / misappropriation of pension funds allocated to District Dadu. The Reference allegedly contains charges against Ghulam Mustafa Lund, Muhammad Nazir Bhutto both former District Ac-
counts OfQicers of Dadu and others for corruption, misuse of authority for personal illegal gains and thus causing loss to the national exchequer worth Rs.736 million. Meanwhile, The All Pakistan Newspaper Society has asked the government to release the biggest advertiser Inaam Akbar alongside several others arrested by NAB on bail bonds and continue with investigations against them in order to steer the newspaper industry out of crisis.
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Iran’s sweets and chocolates exports surge TEHRAN: Export of Iran’s sweets and chocolates registered a significant increase during the first 11 months of the current fiscal year, started March 2017, Mahmoud Bazari, the director general of the exports coordination office of Iran’s Trade Promotion Organization (TPO) for agro crops and processing industries’ products, said. Iran has exported over 513,000 tons of sweets and chocolates in the 11-month period (March 20-Feb. 20) to various countries, 121 percent more year-on-year, Bazari said, the press office of the TPO reported. The value of the exports accounted to $615 million in the period, which is 21 percent more compared to the same months of the preceding year, the official added. Iraq was the main target of Iran’s sweets and chocolates export, he said, adding that $149 million worth of the products were sent to Iraqi market in the first 11 months of the current fiscal year.
chambers, trade associations agree to collectively raise voice for resolving issues
Thursday March 22, 2018
Chambers
chief commissioner Ict assures support for resolving issues of traders
KARACHI
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articipants of a Convention comprising Chambers of Commerce & Industry and Trade Associations from different areas of the country Wednesday unanimously agreed to collective raise voice for resolving issues being faced by the trade and industry due to anti-business taxation policies. In his welcome remarks, Vice Chairman BMG & Former President KCCI Haroon Farooki stated that in order to deal with massive discretionary powers granted to the FBR through Finance Bills every year since 2013, KCCI organized a similar convention last year in February 2017 to urge the government to immediately stop FBR from harassing the
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business community. Subsequently, KCCI delegation also held meeting with the then Chairman of Senate’s Standing Committee on Finance Saleem Mandviwala who ordered the FBR to stop conducting raids and it was really heartening to see that relief was immediately provided to the business and industrial community as FBR halted raids from March 2017 onwards. While appreciating the seriousness exhibited by Saleem Mandviwala towards resolving the issues being faced by business and industrial community, the Convention participants congratulated him on his election as Deputy Chairman Senate of Pakistan. They were confident that the business community will witness better policies and improved business climate during Saleem Mandviwala’s tenure as Deputy Chairman Senate, which would surely prove helpful in creating a pro-business environment across the country.
ISLAMABAD
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delegation of Islamabad Chamber of Commerce & Industry (ICCI) led by its President Sheikh Amir Waheed called on Aftab Akbar Durrani and congratulated him on being appointed as Chief Commissioner, Islamabad. Muhammad Naveed Senior Vice President ICCI, Raja Abdul Majeed, Khalid Chaudhry, Sheikh Abdul Waheed and others were in the delegation. Sheikh Amir Waheed, President ICCI apprised the Chief Commissioner ICT of the key issues of business community. He said that business community of Islamabad was receiving notices for trade license from Director Municipal Administration CDA and Islamabad Market Committee which was not justiQied. He said there should be one regulator for trade license to save business community from problems. He said Islamabad Market Committee has imposed taxes on business community without consultation with stakeholders and without determining any legal
method for tax enforcement and stressed that Chief Commissioner should look into this matter. He said property value in Islamabad was assessed at FBR rate and maximum value of stamp paper was Rs.24,000/- due to which large number of stamp papers were required for registration of property in case of sale/purchase. He said the maximum value of stamp paper should be increased to Rs.100,000/- or the method of Pun-
jab Government should be adopted to facilitate property business. He said Ministry of Interior in collaboration with a public sector organization was going to organize Islamabad Festival. He said ICCI was ready to partner in Islamabad Festival on public-private partnership basis so that people could get good entertainment and business activities could Qlourish. He informed that ICCI was planning to organize an industrial expo “Hamara Islam-
govt to develop policies for business environment LAHORE
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overnment and private sector are vital for each other and they cannot run alone. Government must develop policies conducive for business environment and address genuine issues of the business community. This was stated by the LCCI Acting President Khawaja Khawar Rashid and Vice President Zeshan Khalil while speaking at a dinner hosted by Textile Traders Association. Iftikhar Ai Malik, Farooq Iftikhar Sheikh Muhammad Asif, Abdul Basit, Awais Saeed Piracha, Ch. Aurangzeb Aslam, Sheikh Zafar Iqbal, Ch. Khadim Hussain, Rana Mahmood and Nadeem Abbas also spoke on the occasion.
Khawaja Khawar Rashid said that business community is driving force of the economy but it cannot play its due role for economic wellbeing of the country while carrying huge burden of the problems like withholding tax on banking transactions, misuse of the discretionary powers by the tax collection machinery, high prices of utility prices and delay in refunds etc. He said that there is an urgent need to reform the taxation system by engaging all the stakeholders. He urged the government to withdraw withholding tax on bank transactions in the larger interest of the trade and industry. He said that this tax has forced the business community to conduct its monetary transactions in cash. He said that withdrawal of withholding tax on bank transactions would
give a big relief to the business community. He also called to remove the double taxation system that is hampering the trade and economic activities in the country. The LCCI Vice President Zeshan Khalil said that the government would have to weed out the menace of smuggling and underinvoicing before implementing any tax avoidance measures. He said that it was very unfortunate that instead of widening tax base and bringing the untaxed sectors into the tax net, steps are being taken to squeeze the existing tax payers. The LCCI Vice President, while inviting the budget proposals of Textile Traders Association, informed that concerned government departments seriously consider the LCCI trade & industry-related budget proposals.
abad” at Parade Ground in April this year for which ICT Administration and ISPR had given positive signals, but CDA has not issued NOC due to which the project has been postponed. Muhammad Naveed Senior Vice President ICCI invited Chief Commissioner ICT to visit Chamber for an interaction with local business community. Raja Abdul Majeed, Khalid Chaudhry, Sheikh Abdul Waheed and others also spoke at the occasion.
LccI, khanewal chamber to make joint efforts for trade promotion Lahore Chamber of Commerce & Industry (LCCI) and Khanewal Chamber of Commerce & Industry have agreed to make joint efforts for promotion oftrade and industry. The decision was made at a meeting between LCCI Vice President Zeeshan Khalil and President Khanewal Chamber Asif Nazir. Khawaja Habib, Ali Furqan and Khawaja Atta also spoke on the occasion. It was also agreed that both the chambers would evolve a unified strategy on the issues of common interests. Both the chambers would share and exchange all trade-related data for increasing the competitiveness of goods and reducing cost of doing business. LCCI and Khanewal Chamber would also cooperate in preparation of proposals for economic uplift of the country. –CB Report
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Customs Gwadar takes 25kg of hashish & wine into possession from Jeewani GWADAR: The Customs Collectorate Gwadar has impounded a large quantity of smuggling hashish and bottles of wine worth Rs06.50million. Sources told Customs Today that Deputy Collector Gwadar received secret information that some smugglers are trying to smuggle hashish and wine from Jeewani area. He constituted a raiding team of the Customs Anti-Smuggling Organization (ASO) under the supervision of Customs Preventive Inspector Ghafoor Ahmed and others. The team, during a search operation in Jeewani area, intercepted a boat.
Thursday, March 22, 2018
CUSTOMS BULLETIN
gwadar customs seizes huge quantity of NDp goods worth Rs12.28 million QUETTA wAQAR AHmeD ANSARI www.customsbulletin.com
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he Customs Collectorate Gwadar has impounded huge quantity of smuggled items which included Iranian diesel, Indian ,Iranian brake oil, computer accessories, tyres and other different non duty paid items worth Rs 12.28 million during the thirteen days of March ,2018. Sources told Customs Today that Customs Collectorate has impounded different kinds of Iranian juices and shawls worth more than Rs 4.50 million on Tuesday morning. Sources told that on the directives of the deputy collector Gwadar operation against smuggled items and non-duty paid luxury vehicles is going on in full swing and several raids have been conducted during previous month of February and operation of smuggled items and continue on month of March. Sources told that morning deputy collector Gwadar constituted a team of Customs AntiSmuggling Organization (ASO) under the supervision of Customs Preventive Inspector Wajid Rehman and others. The team, dur-
ing a search operation on Gwadar road, intercepted a truck bearing registration GJ-6534 which was go-
ing out of the city. During the raids, the customs team impounded 100 carton of Iranian Juices,and 250
Irani Shawls worth Rs 4.50 million. The customs team arrested two smugglers who were involved in
smuggling and registered an FIR against the accused persons and started investigations.
ANF seizes 1.220 tons narcotics worth Rs2.175b in 19 raids RAWALPINDI
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he Anti Narcotics Force has carried out several raids against drug maQia across the country and recovered 1.220 tons of narcotics. The value of seized drugs was told to be Rs 2.175 billion in international market, he said. He added that ANF arrested 18 persons including 5 women involved in drug
trafQicking while seizing 5 vehicles in 19 counter-narcotics strikes conducted across the country. The recovered drugs comprised 242.2 Kg Hashish, 27.7 Kg Heroin, 949.5 Kg Opium and 1.3 Kg Amphetamine, he informed. According to him, ANF Quetta seized 40 Kg Hashish from seasonal nullah in Khuda Badan Tehsil and District Panjgur. As per initial reports, drugs were intended to be handed over to another narcotics gang. In another operation ANF Quetta recovered 185 Kg Hashish from mountainous area of Pushkan Tehsill Pasni District, Gawadar, he said. In third operation
ANF Quetta recovered 939 Kg Opium. According to details, the drug was stocked at an isolated site situated at mountainous area of Manthu Tehsil Chaman and District Qilla Abdullah. In fourth operation ANF Quetta intercepted a Land Cruiser near Palantak District Panjgur and recovered 15 Kg Heroin, the spokesman said. The accused escaped from the scene since it was dark. In Qifth operation, ANF Quetta recovered 10 Kg Heroin. According to details, the drug was kept in a Hut in General Area Killag District Panjgur. ANF Rawalpindi recovered 1.2 Kg Hashish from personal possession of a woman identi-
Qied as Hajra Bibi, resident of Kohat. She was arrested near G.T Road, Jhehlum. In another operation, ANF Rawalpindi intercepted two Motorcycle 125 and CD-70 near Iqbal Shaheed Toll Plaza Attock and recovered 10.5 Kg Opium and 2 Kg Hashish which was concealed in secret cavities of the Motorcycle. Four persons on board were arrested during the operation identiQied as Ijaz Ahmed, Mst Nazo, Attique Jan and Mst Mohsin Bibi all residents of Charsadda. In third operation ANF Rawalpindi arrested Muhammad Saleem Shah resident of Okara at Benazir Bhutto International Airport,
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Islamabad and recovered 890 Grams Amphetamine which was concealed in a travelling bag. He was to take off for Saudi Arabia by Flight No. NL719. ANF Lahore arrested and recovered 6 Kg Hashish from the possession of two men identiQied as Muhammad Asim resident of Mianwali and Toheed Afzal, resident of Bhakkar. They were arrested near DHQ Hospital, Bhakkar. In another operation ANF Lahore intercepted a parcel being sent to Canada through a courier service near Johar Town, Lahore and recovered 200 Grams Heroin which was concealed in a woman’s suit.