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PAKISTAN’S FIRST INDEPTH NEWSPAPER ON CUSTOMS
Daily
Vol 1 Issue No. 204
Karachi, Thu October 15, 2015
ISLAMABAD
SHAHID MINHAS
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he Senate Committee for Finance, Revenue and Economic Affairs under the chairmanship of Saleem Mandviwala will discuss and finalise Anti-Money Laundering Amendment Bill 2014 in its meeting on October 20. According to sources, the committee
will consider matters relating to Federal Board of Revenue (FBR) like anti-smuggling measures and border security at Chaman, Torkham and PakistanIran border and performance of field formations. While reforms, up-gradation and promotion policy of FBR in Customs Department will also come under discussion, especially up-gradation of officials from BS 16 to BS-17. Sources added that earlier the Cabinet Division
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had returned the summary forwarded by FBR suggesting up-gradation of senior BPS-16 officers of Customs into BPS-17 and marked several anomalies while FBR proposed the upgradation of Customs superintendents and principal appraisers from BPS-16 to BPS-17. Highlighting the anomalies, Cabinet Division noted Civil Servants Act, 1973 requires promotion to be from a post in lower pay scale to a post in higher pay scale.
Chairman FBR Bajwa to hear cases of PTC and Deewan Cement today
Customs issues valuation of imported bleached Kraft Liner
Nawaz asks envoys to work for better ties with world
Bajwa, Shahid Asad to attend Public Accounts Committee meeting today
LCCI announce to join hands with APTMA
FBR Chairman Tariq Bajwa will hear cases related to Pakistan Tobacco Co | SEE PAGE 02 |
DG Customs Valuation has issued the valuation of bleached Kraft Liner | SEE PAGE 03 |
PM Nawaz Sharif Tuesday asked the Pakistani Ambassadors to work hard | SEE PAGE 04 |
The PAC of the parliament will hold its meeting today in Parliament House | SEE PAGE 12 |
The LCCI Tuesday, while expressing solidarity with APTMA, urged the govet | SEE PAGE 09 |
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Customs impounds four smuggled vehicles , two chassis Thursday, October 15, 2015
National
KARACHI: The Directorate General Customs Intelligence and Investigation Quetta has impounded four smuggled vehicles and two chassis during random checking. According to the sources, customs Quetta stopped a Hino truck for routine checking at a check-point. During the checking, it was revealed that the driver has no documentary evidences of the four vehicles and two chassis loaded on the truck. Later, it was found that these vehicles were on the way to Karachi and were smuggled from Afghanistan via Chaman. Customs has arrested the truck driver identified as Imranuddin and started investigation in this regard.
FBR Chairman Tariq Bajwa to hear cases of PTC and Deewan Cement
LHC seeks FBR reply in duty collection case LAHORE
M IMRAN MEHAR
ISLAMABAD
M FAIZAN
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ederal Board of Revenue (FBR) Chairman Tariq Bajwa will hear cases related to Pakistan Tobacco Company and Deewan Cement Factory today. Sources told Customs Today that representatives of both companies along with their defense counsels will appear during the hearing of the cases. The hearing will take place in FBR Headquarters from 2pm to 4pm. Representatives of both companies will explain their positions on the cases. It is pertinent to mention here that cases of both the companies are related to tax returns. Hearing of cases of both the companies will be conducted separately and the chairman will announce his decision after the hearing. It is expected that Sinal decision in this regard will be announced in a few days. Meanwhile, Federal Board of Revue (FBR) has appointed 2 focal persons of secretary level for China Pak Economic Corridor (CPEC) projects. According to sources, FBR on the request of Ministry of Power and Electricity has appointed these focal persons. FBR also started implementation of withholding tax exemption on import under CPEC through Port Qasim (PQ). As per details, FBR has appointed
one focal person from Inland Revenue (IR) department while the other one from Customs department. Both of the ofSicers will coor-
dinate with the departments concerned for facilitation and resolve issues faced in CPEC projects on priority bases.
Sources further added, under CPEC projects, all imported items through Port Qasim will be exempted from withholding tax.
SHC dismisses bail plea of alleged tax evader KARACHI
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he Sindh High Court (SHC) on Tuesday dismissed the bail plea of a suspect in a case pertaining to the import of dutiable goods of Indian origin in the guise of used cloths that caused Rs 5.62 million loss to the national exchequer.
ahore High Court (LHC) has issued stay order on the collection of regulatory duty on imported tiles and ordered the Federal Board of Revenue (FBR) to submit a reply in the case. As per details, Justice Aisha Mailk heard the case where the counsel for the appellant argued that the FBR could not send notices for the recovery of regulatory duty without making an assessment. He added that the FBR violated the law by sending notices to the sanitary store owners and other importers in this regard. He also asked the court to null and void the collection of regulatory duty on the import of tiles. After hearing the arguments, the courts issued a stay order, directing the FBR and collector concerned to file a reply in this regard.Meanwhile, A division bench of the Lahore High Court (LHC) has barred the National Accountability Bureau (NAB) from proceedings against two businessmen of Lahore, Ahmed Hamayun and Ahsan Hamayun, for being defaulters of a bank loan. A division bench headed by Justice Mahmood Maqbool Bajwa restrained the NAB authorities from taking coercive measures against the petitioners and referred the petition to a full bench to decide “point” of willful default.
A single bench comprising Justice Hassan Azhar Rizvi dismissed the bail application of Muhammad Shahid after hearing arguments from prosecution and the defense side. According to the prosecution, M/s Mass International imported a consignment, containing used trousers, blankets and zipper jackets, and sought release thereof vide GD KAPE-HC155897 on June 6. The importer paid the upfront taxes of the entire consignment amounting to Rs 96,568. The deputy collector became suspi-
cious about origin of the goods and ordered its examination. On physical examination, the goods consisting of baby frocks, polyester vest for girls/ladies, viscose, printed shirts, trousers and shorts of Indian origin were found. The importer M/s Mass International attempted to import restricted/dutiable goods of Indian origin under the guise of used cloths. This deliberate attempt of mis-declaration deprived national exchequer of its legitimate revenue to the tune of Rs 5.62 millions.
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Sialkot ASO seizes smuggled soap SIALKOT: The Customs Anti-Smuggling Organisation (ASO) Sialkot on Tuesday confiscated smuggled soap worth Rs 500,000 As per details, the ASO team acting on information conveyed through the Additional Collector Palwasha Saeed intercepted a truck and recovered foreign made soap in large quantity. The ASO staff asked the accused persons to produce any documentary evidence showing the legal import and lawful possession of the soap, but he could not produce any documents relating to its legal import or lawful possession. Therefore, customs officials seized the soap under the prevailing customs law.
Islamabad Customs converts termination into retirement ISLAMABAD
SHAHID MINHAS
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odel Customs Collectorate Islamabad has terminated the services of a sepoy due to his unlawful absence from duty for more than six months. According to details, Deputy Collector Yawar Nawaz stated in a notification that a major penalty of dismissal from service was imposed upon sepoy Hassan Raza of Model Customs Collectorate but he filed an appeal in the appellate authority. After proceedings of the inquiry, appellate authority converted the major penalty in compulsory retirement. Sources added that the sepoy was terminated on misconduct as he did not attend the office for a long time without any prior approval of the competent authority.
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Faisalabad ASO impounds rickshaw, seizes cloth FAISALABAD
NAEEM SHEIKH
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he Customs Anti-Smuggling Organization (ASO) Faisalabad has seized 6,010 kilogram of smuggled cloth, besides impounding a rickshaw being used for the transportation of the smuggled items worth Rs 234,234 involving duty/taxes amounting to Rs 118,099. The ASO team following information received through Deputy Superintendent Ch Muhammad Sardar intercepted a rickshaw near Bilal Chowk Jail road, Faisalabad and recovered the foreign origin cloth. The ASO staff asked the driver, Muhammad Rafiq to produce any documentary evidence showing the legal import and lawful possession of the consignment, but he remained failed. Therefore, the ASO tem confiscated the smuggled cloth and rickshaw under Section 168 of Customs Act, 1969.
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Thursday October 15, 2015
National
Customs issues valuation of imported bleached Kraft Liner KARACHI
WAQAR AHMED ANSARI www.customsbulletin.com
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irectorate General Customs Valuation (CV) has issued the valuation of bleached Kraft Liner and Sack Kraft Paper. As per details, General of Customs Valuation (GCV) has issued the valuation of the said items under the Customs Act-1969/25A, 812/2015. According to the ruling, the value of imported bleached white Kraft Liner board from Australia, Portugal and Poland will be $0.60 per kilogram, while $0.67 per kilograms from Sweden. The notiSication added that bleached Kraft Liner imported from China will be $0.57 per kilogram and the valuation of bleached Kraft Liner from America and Canada will be $0.64 per kilogram while form other countries the bleached Kraft Liner board valuation will be $0.62 per kilograms. Meanwhile, The manufacturers of ceramic have requested the Director General, Customs Valuation to suspend the Valuation Ruling No 758/2015 dated September 8, 2015 for importing tiles from China and Iran. In this regard, the Pakistan Ceramics Manufacturers Association forwarded a letter to the DG Customs Valuation with a request to suspend the Valuation Ruling No 758/2015. According to letter, over the last Sive years, the valuation of
tiles from China has been reduced by more than 25 percent whereas all the input costs in China regarding labor costs, energy cost and the currency valuation against the US dollar increased by more than 35 percent. Moreover, the inSlation in China over the last 10 years has cumulatively gone up by 26 percent whereas in the same period the valuation of tiles has been reduced The import data reveals that a large number of consignments of
According to the ruling, the value of imported bleached white Kraft Liner board from Australia, Portugal and Poland will be $0.60 per kilogram, while $0.67 per kilograms from Sweden.
FBR starts crackdown on 122 tax defaulter firms KARACHI
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he Federal Board of Revenue (FBR) has started crackdown against tax defaulter companies. Additional Commissioner Regional Tax OfSice III (RTOIII) Malik Fayyaz told Customs Today that after the directions of
Investigation and prosecution Inland Revenue One, Four and RTOIII, investigation of companies’ data has been started. He added that the investigations are in Sinal stage and a list of 122 companies in Karachi and Hyderabad has already been completed in this regard. He added that stern action will be taken against companies found involved in any irregularity. Action will also be taken against those companies which have Siled their tax returns but did not show any sale or pur-
chase record during July 2015. Meanwhile, The Federal Board of Revenue (FBR) has reduced the Import Trade Price (ITP) for ceramics to $1.82 per square meter from Iran. The FBR has also reduced the ITP on ceramic tiles import from China, Europe and Middle East, sources told Customs Today. According to the sources, the local ceramic industry would get affected with decrease in ITP and under-invoicing and mis-declaration had already caused loss of billions of rupees.
Iranian origin tiles were released in the price ranging from $ 0.60 to $ 0.16 per square meter as against $ 2.17 and above per square meter from China vide Valuation Ruling No 518/2013. However, there is no current Valuation Ruling for Iranian tiles. These tiles have been imported under alleged wrong PCT heading 2713.200 attracting 10 percent duty, causing loss of billions of rupees to the national exchequer, the letter adds.
FBR yet to pay Rs 24.91b to Sindh Board of Revenue indh Board of Revenue (SBR) Chairman Tashfeen Khalid Niaz has claimed that Federal Board of Revenue (FBR) has yet to pay Rs 24.91 billion in terms of sales tax collected from Sindh. The SBR chairman added that he had discussed the matter with FBR Chairman Tariq Bajwa last month.—CB Report
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VW first sold cars in UK with cheat software in 2008 Thursday, October 15, 2015
Business
LONDON: Volkswagen first sold cars in Britain equipped with software that could cheat emissions tests in 2008, its UK boss said, but he shed little light on the root cause of the scandal. Europe’s largest automaker has admitted rigging diesel emissions tests in the United States, and Germany’s transport minister says it also manipulated them in Europe. The company’s UK managing director said that, while it first began selling cars in the country equipped with so-called defeat devices around seven years.
Economic development key to win people’s confidence: Ishaq Dar LAHORE
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ederal Minister for Finance, Senator Mohammad Ishaq Dar while addressing the Seminar on “Economic Development and National Cohesion” organized by the Embassy of Republic of Korea and the Institute for Policy Reforms emphasized that economic development is the basic element to win the people’s conSidence. Poverty
SBP to issue new 5-rupee coin tomorrow
on the other hand breeds public discontent which threatens the unity of a nation. The minister went on to say that Pakistan has an unparalleled ethnic and geographical diversity with a lot of human resource potential. This potential needs to be fully tapped and aligned with the national priorities with the ultimate aim of attaining national cohesiveness and equitable economic prosperity. He added that the present government is cognizant of the fact that unless fruits of economic development are equitably distributed, the dream of national cohesion will remain elusive.
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tate Bank of Pakistan (SBP) has announced to issue a new 5-rupee coin on October 15. According to the central bank, weight of new coin is 3 grams and it is made of 79 percent copper, 20 percent zinc and 1 percent nickel. There is a rising star on the front of the coin in which ‘Islami Jamhuriya Pakistan’ is imprinted, while there are stars and flowers imprinted on the back.
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Rs 40 billion in 2012-13 to Rs 102 billion in the current financial year. Minister Dar added that the improvements in Pakistan’s economy are manifested by an overall improvement in macroeconomic indicators. In FY14, Pakistan achieved, as mentioned above, GDP growth of 4.02 percent – the highest in six years – and increased it further to 4.24 percent in FY15, reaching the highest level in seven years. The Siscal deSicit which stood at 8.2 percent (8.8 percent when the government took ofSice) at the end of FY13 has been brought down to 5.3 percent in FY15.
Karachi commissioner reviews Lyari Expressway project
KARACHI
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The minister said that one of the key areas for accomplishing the goal of national cohesion is modernized and efficient transport and communication infrastructure. Similarly the importance of social safety nets as a measure to achieve economic inclusiveness can also not be overemphasized. The Minister said we have not only continued the National Income Support Programme, of which BISP is a major component, but have also increased the cash grant per beneficiary family from Rs 12,000/- to Rs 18,000/- per year. The budgetary allocation has been increased from
KARACHI
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ommissioner Shoaib Ahmed Siddiqui Tuesday chaired a meeting to review the matter pertaining to construction work on Lyari Expressway North Bound and payment to the shiftees. The meeting was informed that work has been started on the 800
meters of strip got vacated in District West. The work has started clearing of the construction at the North Bound in the District Central, it was informed. The Commissioner appreciated the performance of the organizations concerned. He was of the view that the Lyari Expressway is a project of national importance and that its remaining work should be executed by the organizations concerned so that it could be completed at the earliest. It was decided at the meeting that work on 700 meter portion
got vacated in District Central would also be initiated. General Manager National Highway Authority informed that the Chairman has praised the pace of construction work of the project. The federal government has released a sum of Rs. 700 million for the payment of compensation to the shiftees. It was pointed out that Lyari Expressway is a good effort for streamlining the traffic system in the metropolis and that the flow of traffic in the city would be eased.
KSE sheds early gains as 100-index drops 57pts to reach 33975 level KARACHI
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he Karachi stocks Wednesday lost the early gains by losing 56.93 points to close at 33974.85 points level. The stock market recorded the highest trading level of 34127.44 points and lowest level of 33896.34 points. The maximum trading volume remained 77,068,140 shares, having over Rs5 billion value. Out of total 352 companies, 163 were up 161 were down and 28 were unchanged. The three top traded companies were Pace (Pak) Ltd. with a volume of 30,977,000 and price per share of 7.09 (-0.45), Lotte Chemical with a volume 13,507,000 of price per share of 7.14 (0.00), TRG Pak Ltd with a volume 12,413,000 of price per share of 37.21 (0.42). Earlier, the Karachi Stock Exchange added another 90 points to take the tally to 34161.67 points level till midday (12:20pm).
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Nawaz asks envoys to work for better ties with world ISLAMABAD
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rime Minister Nawaz Sharif Tuesday asked the Pakistani Ambassadors to work hard for further strengthening bilateral ties with the other countries and presenting Pakistan’s positive im-
age in the world. The Prime Minister said this, while talking to Ambassadors-designate who called on him here at the PM House, a PM OfSice statement said. Ambassadors designate who called on the Prime Minister included Qazi Khalilullah (Russian Federation), Johar Saleem (Germany), Moin ul Haq (France), Mazhar Javed (Nepal), Afrasiab (New Zealand), Babar Hashmi (Bulgaria), Zahid Ali (Sudan) and
Chudhry Nadir (Morocco). The Consul Generals designate who called on PM included Jabbar Memon (Los Angeles, USA) and Ahmad Naseem Waraich (Frankfurt, Germany). The meeting was also attended by Special Assistant to PM Tariq Fatemi, Foreign Secretary Aizaz Ahmad Chaudhry and senior ofSicers. Meanwhile, The federal government, in collaboration with the Sindh government, has expressed
its interest to launch Karachi Circular Railway project on earliest basis. This was revealed by Federal Minister Planning, Development & Reforms Ahsan Iqbal, who further said that the Federal and Sindh governments want Japan International Cooperation Agency (JICA) to execute this project. The minister said this while chairing a review meeting of KCR at Ministry of Planning, Development & Reforms. OfSicials of Sindh gov-
ernment & Railway Ministry and representatives of JICA participated in the meeting. Ahsan Iqbal urged that since JICA has a long association with KCR, so the government also considers its Sirst right to execute the project. But it should come up with the clear timelines for launching this project. “We look forward to the shortest timelines so that this vital project can be launched at its earliest”, the minister maintained.
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Meanwhile, the Model Customs Collectorate Lahore Preventive’s Anti-Smuggling Organisation (ASO) impounded a
he 20th meeting of Customs Liaison Border Committee (CLBC) between Pakistani and Indian Customs authorities will be held today (October 15) in Lahore Customs House to discuss issues and resolve them to further facilitate the bilateral trade. “In order to speed up trade between the two countries data exchange methodology will be the central point as Indian IT experts will also accompany the customs commissioners,” Customs Preventive Collector Mukarram Jah Ansari told Customs Today. Earlier, 19th CLBC met in Amritsar to expedite bilateral trade through Wagha border. The customs authorities of both sides proposed to their respective governments to establish IT based data transfer system between the two sides. The proposal will be implemented if is approved by the governments of Pakistan and India.
bus and illegally imported goods, including smuggled cloth and iron pad locks, sources told Customs Today. It was reported that on the information of Assistant Collector Saqib Ur Rehman, the ASO team headed by Superintendent Mumtaz Ajmal Mian, Deputy Superintendent Saleem
LAHORE M HAYAT
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Thursday, October 15, 2015
Akhatar, Inspectors Shahid Khan Amjad Khan and Shahid Bhatti intercepted a bus coming from Peshawar bearing registration No 9584 loaded with smuggled cloth and iron pad locks worth Rs 1 million. The source said that the bus worth Rs 2 million has also been impounded and a case has been registered, it was reported. Meanwhile, The Model Customs Collectorate Lahore Preventive’ AntiSmuggling Organization (ASO) on Monday impounded a bus and illegally imported goods, including smuggled cloth and iron pad locks, sources told Customs Today. It was reported that on the information of Assistant Collector Saqib Ur Rehman, the ASO team headed by Superintendent Mumtaz Ajmal Mian, Deputy Superintendent Saleem Akhatar, Inspectors Shahid Khan Amjad Khan and Shahid Bhatti intercepted a bus coming from Peshawar bearing registration No 9584 loaded with smuggled cloth and iron pad locks worth Rs 1 million.
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Founder & Chairman Zulfiqar Ali Editor Rahil Yasin editor@customsbulletin.com.pk For advertising & subscription marketing@customsbulletin.com.pk www.customsbulletin.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
EDITORIAL
Need to revise customs rules
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ccording to reports appearing in the Customs Today, various branches of the Customs department confiscated goods worth millions of rupees in September across the country. The seized goods included ladies cloth, cumin seeds, cigarettes, juices, chocolates, auto parts and polyester fabric. As a matter of fact, the customs department seizes tonnes of goods every month and confiscation is regarded as a routine matter. The seized goods are disposed of or put to auction later on. The point is how the goods make their way into the country despite heavy presence of army, rangers and coast guards on the borders and coastal areas. The smuggling of dutiable or contraband items suggest security lapse on the part of the oďŹƒcials who are deployed to guard the country’s frontiers. The items which are frequently seized by the customs department are Iranian goods, including oil, diesel, ceramics tiles and blankets. The customs department has now begun to make close liaison with security agencies, including rangers and coast guards to stop the menace of smuggling in the country. However, despite all these kinds of arrangements, the smuggling still continues at an alarming rate. According to some experts, the Afghan Transit Trade is also a source of smuggling as the items, which are imported through this channel, are ultimately land into Bara markets in various cities of the country. Smuggling is not only harmful for local industry, but it also deprives country of billions of rupees taxes and duties. Reviewing the situation, every finger is pointed on the federal government which has failed to revisit existing laws to curb smuggling and adopt a realistic approach toward the situation. If the smuggled Iranian oil is available in Pakistan on the cheapest rates, it should be a point to ponder for the government to change its laws to allow legal import of goods from the neighbouring country. It should also be noted that why Iranian ceramic tiles are of good quality and cheaper than those are manufactured in Pakistan. On another note, Iranian blankets are freely available in every market across the country. If this is the situation, why the government does not opt for a free trade agreement with the brotherly Islamic country or takes steps to minimize taxes and duties on the Iranian products? The world is heading toward integration and trade barriers within the countries are being softened. There is a need to enhance trade with Iran and support it on every international forum for a common cause which is the economy.
Power sector reforms A
LAHORE
DR AFTAB AFZAL
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ccording to newspaper reports, the International Monetary Fund (IMF) has apprehended that implementation of structural reforms in power sector are facing political and legal challenges. In its eighth review under the extended arrangement and on Pakistan’s request to waive performance criteria, the two sides focused their topics of discussions on the issues related to the energy sector, including imposition of power surcharges coupled with allocation of 0.1 percent of GDP in the current Siscal budget to reduce part of the circular debt. Though the govern-
ment has missed the indicative target at the end-June 2015 on the Slow of power sector arrears by Rs 15 billion, it recovered the projected collections and managed to achieve the September target. The fund has asked the government to align the business plans of the power distribution companies with the arrears reduction plan, including a proposal to set a new bench mark for quarterly loss reduction, revenue collection and recovery targets for each DISCO by mid-October 2015. On another note, the Privatization Commission is exploring new ways and means to ensure participation of private sector in thermal power generation besides keeping the option open for privatization of the power sector. The govern-
ment has also launched a roadshow in the United States to create awareness about privatization of power sector in Pakistan and invited the foreign investors to exploit the opportunities in the energy sector. The World Bank and the Asian Development Bank have jointly stressed the need for an alternative plan to keep up revenue generation in the electricity sector in case of legal challenges. The government is facing pressure from various donor agencies to enhance power tariff to neutralize the effects of losses in power generation and its distribution. The government has already brought utility bills to new heights and it is becoming harder and harder for common man to make both ends meet. Hundreds of industrial units have
been closed down and the worst part of the IMF program is that the power outages and the business climate will continue to restrain competitiveness and growth in the country despite enhancement in the power tariff. The government has started implementing a time-bound strategy to deal with price distortions and other issues with the help of international partners. There is a need to expedite work on the hydropower projects and promote policies to attract local and foreign investment in power generation. Unfortunately, the government is facing various challenges one after the other since it came to power, but it seems it lacks the crisis management team to deal with the situation.
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Mozambique exports fish worth $80m a year MAPUTO: The Mozambican Minister for the Sea, Inland Waters and Fisheries, Agostinho Mondlane has said his country estimated annual revenue of $80 million from exporting fish, which has remained at an annual average of 250,000 tons. The Minister was addressing the opening of the 7th Session of the Southwest Indian Ocean Fisheries Commission SWIOFC in Maputo on Tuesday when he said Mozambican fisheries production had remained stable and that the role played by the government had been to promote strengthening of domestic supply without losing sight of international markets. According to the official, the fishing industry’s contribution to gross domestic product (GDP) is currently around 1 percent but stressed that data was collected and processed by other institutions such as the Ministry of Economy and Finance, through the National Statistics Institute (INE).
Textile industry to remain closed today in protest against govt: APTMA he textile industrialists, protesting against the government’s ‘non-serious’ behaviour, have announced to mark black day on Wednesday (today) by closing down the industry across the country. All Pakistan Textile Mills Association (APTMA) Punjab Chairman Amir Fayyaz, addressing a press conference, said that the owners of mills in Khyber Pakhtunkhwa, Lahore, Faisalabad, Multan and Karachi had unanimously decided to close down operations and lay off millions of workers because they had nothing to offer to their international buyers against the regional competitors. He said, “Prime Minister’s priorities are foreign tours and he is least concerned over declining export and collapse of the industry. We are told by the authorities that PM is going to the US again and exporters will have to wait for another 15-20 days for announcement of relief package by the PM.” According to him, the cost of doing business in the textile sector has gone very high and the burden of taxes, provincial cess, system inefficiencies and the punitive withholding tax regime have added fuel to the fire. He said that more than 50 textile mills out of 350 have been closed during the last three months, as the mills could not mange to pay high electricity bills. He said the textile industry was vying for reducing its cost of doing business, particularly the cost of energy, which is almost 60 percent higher comparing with the regional competitors. Electricity to the textile industry in the region is not more than 9 cent per kilowatt hour against 14.5 cent per kilowatt hour in Pakistan at present, he added. He maintained that only the continuity of textile industry operations can ensure exports and employment in the country. —CB Report
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Thursday October 15, 2015
Chambers
LCCI announce to join hands with All Pakistan Textile Mills Association LAHORE
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he Lahore Chamber of Commerce and Industry Tuesday, while expressing solidarity with All Pakistan Textile Mills Association (APTMA), urged the government to give relief package to the textile industry that has almost collapsed. In a statement issued here, the LCCI president Sheikh Muhammad Arshad said that the high cost of doing business has not only ousted Pakistani textiles from the international marketplace but is also jacking up the graph of unemployment. The LCCI president said that it is not the textile industry only that is suffering because of high cost of doing business and non availability of energy but almost every sector is facing same situation that is giving a bad name to the government. “The Lahore Chamber of Commerce and Industry believes that the government would listen to the grievances of the textile industry
and come up with package of incentives sooner than later”, He added. He said that the examples are there that the various countries took immediate measures whenever they felt that their certain economic sectors were not giving desired results. Therefore, the government must not waste any further time in pondering
over the issues and give relief package to the textile industry. The LCCI President said that being largest export-oriented sector of the country and second largest job provider to the skilled and unskilled manpower, its closure would result in disastrous results for the national economy. He said that policy makers
Kelowna Chamber plans laws for business OTTAWA
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heresa Arsenault, QC has been named Business Leader of the Year for 2015 by the Kelowna Chamber of Commerce. The award recognizes and celebrates Ms. Arsenault for her outstanding contribution to the business community in Kelowna. Theresa Arsenault has been practicing business and estate planning law as a partner with Pushor Mitchell LLP for the past 30 years. She is a leader in her Sirm, serving 18 years on the Management Committee, 4 of them as Managing Partner. She developed a very successful practice, with her many valued clients relying on her expertise in
commercial transactions, real estate developments; including First Nations lands, trusts and estate planning. She acts as a mentor to lawyers within her Sirm and to other lawyers in the community. Theresa is a leader in her profession as well, presenting at continuing legal education seminars on First Nations land development, real estate matters, and estate planning topics. She serves as a practice advisor to lawyers in the province, and was awarded the designation Queens Counsel in 2009 in recognition of her outstanding contributions to her profession. Ms. Arsenault will receive her award at this year’s ceremony at the Delta Grand Okanagan Resort on Wednesday, October 21st. The following is a feature Woman to Watch article on Aresnault that was published in the Capital News earlier this year.
For three decades, Theresa Arsenault has been practising business and estate planning law in Kelowna. Arsenault has been a lawyer for 33 years, spending the last 30 with Pushor Mitchell, where she is now a senior partner. She started her law career in litigation, but quickly moved into business and estate planning law as she found litigation did not suit her personality as she wanted to help people reach deals, not handle the fallout of ones that fell through. The transition to business and estate management law proved to be a great decision for Arsenault, as she loves learning and helping people—things she gets to do with regularity in her job. In addition to serving her clients, Arsenault’s current role has her mentoring the junior lawyers and new staff at the Sirm—something she really enjoys to do.
should realize the fact that industrialists and hundred and thousands workers would not only be the only loser but the government would also lose huge revenue being collected from textile industry. He said that at least 400 textile mills across the country have decided to close down their production today (October 14) to record protest against the soaring cost of doing business which would not only occur loss of billions to the national exchequer but would also give a bad message to the foreign investor and they would shelve their plans of investment in Pakistan. “How textile industry can survive in the presence of high power tariff, gas infrastructure development cess (GIDC) and unavailability of energy” the LCCI President questioned. He said that at present when regional countries experiencing rapid economic growth, fall in Pakistan’s textile exports should be an eye opener for the policy markers. Sheikh Muhammad Arshad said that industrial sector needs cheap energy but to keep its wheel moving but situation is quite discouraging in this regard.
Garments manufacturers demand ‘Pakistan Trade House’ in Dubai he garments manufacturers have asked the government to set up a permanent display centre with the name of “Pakistan Trade House” in Dubai to promote export products in international market. Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) spokesman Ijaz A Khokhar raised this demand, while talking to the state-owned news agency. Ijaz said the government should announce special incentives for research and development enabling the SMEs for up-gradation of machinery, innovation of new products and the compliance of issues. —CB Report
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New Zealand Customs investigates online drug imports Thursday October 15, 2015
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WELLINGTON: Wellington Police and New Zealand Customs have undertaken a joint investigation targeting the importers of psychoactive substances and controlled drugs ordered over the internet. Operation Venus has resulted in the seizure of dozens of small packages over past months. they were destined for addresses all around the Wellington region. Packages have contained methamphetamine, synthetic cannabinoid, Ecstasy, and Alpha PVP. Last month, police and Customs staff executed search warrants at six addresses in the Hutt Valley and Porirua, resulting in the arrests of four people and the seizure of significant quantities of synthetic cannabinoid. Those people have been charged with offences including importation of psychoactive substances, possession of psychoactive substances with intent to supply, and cultivating cannabis.
Ghana Customs trying to Malaysian Customs destroys 262.45kg drugs worth RM35.6m build standardise image ACCRA
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he Royal Malaysian Customs Department (JKDM) for the Sirst time today, used the incinerator system to destroy various types of drugs weighing a total of 262.45 kilogrammes (kg) worth RM35.6 million seized since 2013. Its director-general Datuk Khazali Ahmad said the drugs were seized by the KL International Airport (KLIA) Enforcement Unit, Narcotics Branch JKDM headquarters and the Enforcement Unit of JKDM Kuala Lumpur following the arrests and seizures from 155 cases from 2013 until last month. He said the drugs comprised 148.03kg of methamphetamine, cathinone (103.61kg), ketamine (7.828kg) and pseudoephedrine (2.982kg). “Cathinone and pseudoephedrine are commonly used to produce medicines but the seized drugs were believed to be modiSied
Indian Customs seizes 2.5kg gold, arrests woman hoodwink tactic by a 26-year-old woman passenger was not smart enough to give a slip to the customs officials. The woman was nabbed by the officials at the Jaipur airport with 2,561 gram (nearly 2.5 kg) of gold concealed in the transformer stamping of a microwave. The woman hails from Mumbai and it was allegedly her first journey to Jaipur as a "carrier" of smuggled gold. According to the senior officers of customs, they already had information on the woman passenger coming from Abu Dhabi to Jaipur on Sunday morning. "We were not sure in which of her articles the woman, identified as Heena Javed Rindani, had concealed the gold. After a thorough scanning of her baggage it was found that the gold was hidden in the stamping of the transformer of the microwave," said a senior officer of customs. After taking the microwave, it was shown to our assessor who found 2,561 gram of gold concealed in the microwave. —CB Report
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drugs,” he told reporters before the drugs were disposed of at the Department of Agriculture’s incineration disposal site, here. Khazali said incineration was used to dispose the drugs as the method was more environmentally friendly. “Besides, the amount we have this time was quite, so we approached the Department of Agriculture to use the incinerator,” he said. He said in the process, the drugs would be burned in batches of 60 kgs for about an hour, per batch.
The incinerator was normally used to destroy prohibited or diseased agricultural products brought into the country. Khazali said overall, the Customs Narcotics Branch, KLIA Customs and Kuala Lumpur Customs have seized 1,548.168kg of drugs worth RM174.525 million since 2013 up to last month. He said 1,005.178kg worth RM81.811 million was from drug seizures in 2013; 434.654kg (RM72.663 million) in 2014; and 108.337kg (RM20.051 million) from January to September this year.
Philippines Customs trying to curb sugar smuggling
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he Bureau of Customs has formally deputized representatives from the Sugar Regulatory Administration (SRA) and Sugar AntiSmuggling OfSice of the Sugar Alliance of the Philippines (SASO) to intensify its efforts to curb sugar smuggling in the country. In a memorandum order signed by Customs Commissioner Alberto D. Lina, SRA’s Luisito Malagkit and SASO’s Manuel Lamata and Edgard
Lumanog were deputized to act as industry-expert advisers of the OfSice of the Commissioner on matters that will help curtail sugar smuggling. In a statement, Lina said the illicit trade of sugar has placed an increasing burden on Customs and the industry itself. The chief BOC said it has instructed all ofSicials and employees to extend their assistance to these representatives, and provide the necessary support and cooperation.—CB Report
ssistant Commissioner of Customs, Isaac Kofi Toffah, outgoing Sector Commander of the Customs Division, Kumasi Collection Station of the Ghana Revenue Authority (GRA), has charged the personnel to demonstrate high moral standards in the discharge of their duties. “It is your collective responsibility to strive to give the Division and the Authority as a whole a good image. To succeed in this regard, you must remain focused, dedicated, determined and exhibit good conduct to win the hearts of the people we serve”, he noted. Assistant Commissioner Toffah, speaking at a pull-out parade in his honour, to mark the end of his service at Amakom in Kumasi, expressed concern over how the image of the Customs had been battered over the years due to the malpractices of some few undisciplined elements. “We have been viliSied and indeed cruciSied in the court of public opinion due largely to the conduct of a misguided few”, he lamented. He reminded, particularly the
younger generation of ofSicers, that they represented the new face of the Customs Division and as brand ambassadors, “you must live above reproach and conduct yourself in an exemplary manner to justify the trust reposed in you”. Assistant Commissioner Toffah served the Customs Division in various capacities for 38 years, and witnessed at Sirst hand, the various stages of transformation of the Customs and Excise Department to a para-military Customs, Excise and Preventive Service into the present Customs Division of the GRA. He is credited to have supervised an operation that led to the nation’s Sirst cocaine arrest at the Tema port, following his appointment as the Head of Preventive Duties at the Honuta Station in 1987 when the erstwhile Border Guards departed. The Assistant commissioner also served severally on many committees, including the Committee for the Drafting of Scheme of Service for the Customs, committee that drafted the GRA Training Manual and committee that got CEPS ISO 900 certiSied for the Sirst time. Mr. John Vianney, Commissioner, Customs Division of the GRA, lauded the outgoing Station Commander for his commitment duty.
Vietnam's Single Window programme reduces time for customs clearance
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ince its introduction in May, Viet Nam's National Single Window (NSW) has signiSicantly reduced the time required for customs clearance, helping import businesses save time and money on lengthy administrative procedures.
By the end of September, more than 3,800 imported motor vehicles were issued safety and environmental certiSicates through the NSW, according to the Viet Nam Register under the Ministry of Transport.
UK Customs seizes million cigarettes, 74 litres of booze
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ore than a million cigarettes and 74 litres of booze have been seized during raids across Greater Manchester. Officers from HM Revenue and Customs and support agencies visited 50 shops and 12 storage units,
seizing suspected tobacco and alcohol at 29 of them. The seized goods included 1,016,653 cigarettes, 73.60 kilos of hand-rolling tobacco and 52.36 kilos of shisha tobacco, with an estimated £267,000 in duty and VAT evaded, and 74.25 litres of alcohol, with an estimated £1,900 in duty and VAT evaded. Sandra Smith, assistant director
of HMRCis Fraud Investigation Service, said: “Disrupting criminal trade is at the heart of our strategy to clampdown on the illicit tobacco market, which costs the UK around £2.1 billion a year, and the sale of illicit alcohol which costs the UK around £1 billion per year. “This is theft from the taxpayer and undermines legitimate traders.
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Australia signs $506m deal with Chinese firm for 99-year lease of Darwin port CANBERRA: The Northern Territory government has signed a $506m agreement with a Chinese based group for a 99-year lease of the Darwin port, but the union has expressed outrage at a lack of protections for workers. The deal, resulting from a tender process begun in 2014, gives the Landbridge Group 100% operational control of the port and 80% ownership of the Darwin Port land, facilities of East Arm wharf including the marine supply base, and Fort Hill wharf. The remaining 20% will be held by the Northern Territory government for the first five years before transferring to another Australian entity to ensure some local ownership is retained.
Market share falls to lowest of 25.38% in 6 years in 2013-14 for ports rom a high of 67.30 percent in market share in 2008-09, the market share fell to its lowest of 25.38 percent in six years in 2013-14 for ports, the shipping ministry said in a statement. However, the turnaround stared from 2014-15 when the fertilizer handling market share of major Indian ports rose slightly to 26.93 percent, it said, adding by 2015-16, the climb bettered by 4.67 percent to reach 31.60 percent. The improvement has been attributed to increase in productivity, efficiency, faster turnaround time and policy changes initiated by the chemicals and fertilizers ministry, the statement added. —CB Report
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America’s Central Port to christen South Harbor soon he South Harbor project is a $50 million addition to America’s Central Port, a rehabilitated military base in Granite City that now handles nearly 3 million tons of cargo every year. And they expect that number to go up by 25 percent in the next five years, thanks to South Harbor. The port district includes 200 square miles along the banks of the Mississippi River and Chain of Rocks Canal, with harbors, truck and rail facilities, warehouses and a foreign trade zone. It has 76 tenants employing more than 900 people, according to the port authority, though it is estimated that more than 1,400 people in total are employed through the port district and its tenants.—CB Report
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Port of Long Beach boosts its on-dock rail capacity with a US$93m project he Port of Long Beach (POLB) is boosting its on-dock rail capacity with a US$93m project that promises to eliminate up to 750 truck trips from regional roadways with every on-dock rail train. The ‘Green Port Gateway’ project saw almost six miles of new track laid, allowing port terminals to increase their use of ondock rail and decreasing truck traffic and air pollution in and around the port. POLB’s upgraded rail network is part of a broader modernisation programme to strengthen the port’s competitiveness and reduce port-related impacts to environment with US$1bn committed for more rail projects over the next 10 years. —CB Report
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Potential threat of cyber attacks at US ports HONG KONG www.customsbulletin.com
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over a year ago by the Government Accountability OfSice. She said that while some individual ports have taken cyber-risk assessments, the Coast Guard and the DHS have been comparatively slow to fully tackle the issue of cyber security. Miller said: “The Coast Guard, and DHS as a whole, have been slow to fully engage on cyber security efforts at the nation’s 360 seaports…The Coast Guard has not yet conducted cyber risk assessments, though some individual ports have taken the initiative themselves.” The potential risk was also spotlighted by the Government Accountability OfSice’s information security
issues director, Gregory C. Wilshusen, who stressed the importance of halting cyber attacks and security breaches at ports. “A major disruption in the maritime transportation system could have a signiSicant impact on global shipping, international trade, and the global economy, as well as posing risks to public safety.” Mr Wilshusen said that American ports handle over $1.3 trillion in cargo every year. Any major disruption in the maritime transportation system would thus not only badly affect global shipping and international trade, but also threaten public safety.
Port of Oakland import volume jumps 1.6%
ontainerized import volume was up for a seventh-straight month at the Port of Oakland in September. The strong inbound trend mirrored recent numbers reported by the Ports of LA/Long Beach. While Oakland is still the leading gateway for PaciSic Rim exports, those volumes continue to decline, reSlecting
Port regulation proposal justifies re-inclusion of all services embers of the Committee on Transport and Tourism (TRAN) of the European Parliament are considering substantial simplifications to the Commission’s proposal for a Regulation on market access to port services and financial transparency of ports. Based on amendments introduced by Rapporteur Knut Fleckenstein (S&D), procedures for limitation and selection of port service providers are notably bound to become much more straightforward. “We welcome this approach. It is in everyone’s interest that procedures are as transparent and simple as possible”, said ECSA Secretary General Patrick Verhoeven, “With the proposed changes on the table, we see no reason whatsoever to maintain the current exemption of cargo handling and passenger services, let alone justify the additional exclusion of pilotage that is proposed by some MEPs.”“In the interest of legal certainty and the widely praised ‘level playing field’ we therefore encourage MEPs to go for an inclusive story”, he added. European shipowners nevertheless warn for additional restrictions that may be introduced under the guise of social protection. “We support proposals that seek to improve the qualifications, safety and working conditions of employees”, said Lieselot Marinus, ECSA Director Shipping and Trade Policy, “But we cannot accept attempts to force disproportional restrictions on new market entrants through unjust application of rules on transfer of undertakings.”MEPs will be discussing the 712 amendments that have been tabled on the proposal at the monthly meeting of the TRAN Committee this afternoon. —CB Report
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CUSTOMS BULLETIN REPORT oncerns have been raised with respect to the potential threat of cyber attacks at United States ports which could release dangerous chemicals. The potential risk was raised by the Rep. Candice Miller, R-Mich. Miller said that as a result of asserted security gaps left unSixed by the Department of Homeland Security, a cyber attack against an American port could have dangerous consequences. In addition to concerns over effects on the economy, Miller argued that cargoes like liqueSied natural gas could pose a distinct threat. The congresswoman explained the scenario in which a potential cyber breach could interfere with the industrial control monitor systems that monitor cargoes. As a result, such interference could cause the release of dangerous chemicals, which would badly affect populated areas. Congresswoman Miller claimed that these concerns were reported
Thursday October 15, 2015
the current trade imbalance. The port said that it handled 1.6 percent more containerized imports last month than it did a year ago. The import rally has erased a wintertime decline in Oakland. The Port said import totals for the Sirst nine months of 2015 are now even with last year. That’s a signiSicant turnaround from January and February
when import volume dropped nearly 40 percent. “We’re pleased with the ongoing buildup of import cargo,” said Maritime Director John Driscoll. “Our job now is to maintain the momentum.” Overall containerized cargo volume – imports, exports and empty containers – declined 4.8 percent in September, the Port said. —CB Report
Abidjan's port community successfully complete UNCTAD training
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articipants from Abidjan's port community successfully completed the UNCTAD/TrainForTrade course in Modern Port Management after presenting dissertations focusing on challenges within their area of work including statistics, port congestion, talent
management, environmental pollution and port security. The eight-module course on Modern Port Management took place over a period of a year and comprised 240 hours of lessons at the training center of the Port Authority of Abidjan (PAA). Juries on the dissertation panels were made up of representatives from partner ports in the Frenchspeaking network of the UNCTAD/TrainForTrade Port Training
Programme, as well as two experts from UNCTAD and two observers from a potential member port (Port of Pointe Noire, Republic of the Congo). The Head of Cabinet of the Ministry of the Economy and Finance of Côte d'Ivoire awarding the UNCTAD/TrainForTrade CertiSicate in Modern Port Management PAA General Director Hien Yacouba Sié hosted the certiSication ceremony at the Golf Hotel of Abidjan.
Guests of honor included the Head of Cabinet of the Ministry of the Economy and Finance of Côte d'Ivoire, the Secretary General of the Port Management Association of West and Central Africa (PMAWCA), and the General Director of the Ports Authority of Dakar, Senegal, Cheikh Kanté. Dr. Kanté described the difference the programme was making in Dakar, where it has been running for more than ten years.
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Customs Court shifted to Judicial Complex from The Mall LAHORE: The Special Federal Court of Customs Taxation and Anti-smuggling has been shifted to newly built Judicial Complex Lahore. As per directions of the Lahore High Court, the Customs Court has started functioning at the Judicial Complex. On Tuesday, special Judge to Customs Court Chaudhary Ameer Hussain heard 17 cases. Room Number B-6 is allotted to the Customs Court in the Judicial Complex which is situated at the first floor. The Punjab government has constructed a new seven storey building adjacent to the sessions courts where all lower courts have been shifted, including the Anti-Smuggling Court.
Thursday, October 15, 2015
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Bajwa, Shahid Asad to attend Public Accounts Committee meeting ISLAMABAD M FAIZAN
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he Public Accounts Committee (PAC) of the parliament will hold its meeting in Parliament House Committee Room No. 2 at 11am. Opposition leader in the National Assembly Syed Khursheed Shah will preside over the meeting. During the meeting, audit report for the Siscal year 2011-12 will be submitted. Chairman Federal Board of Revenue Tariq Bajwa, Senior Member Inland Revenue (Policy) Shahid Hussain Asad, Member Inland Revenue Operation Mohammad Ashraf Khan and Member Information Technology Begum Raana Ahmed will also participate in the meeting. During the meeting, implementation on decisions of previous PAC meeting will also be discussed. Meanwhile, Sindh Board of Revenue (SBR) Chairman Tashfeen Khalid Niaz has claimed that Federal Board of Revenue (FBR) has yet to pay Rs 24.91 billion in terms of sales tax collected from Sindh. The SBR chairman added that he had discussed the matter with FBR Chairman Tariq Bajwa last month.
Multan RTO collects Rs 16.11b during first quarter MULTAN
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he Federal Board of Revenue (FBR) Regional Tax OfSice Multan has collected Rs 16.11 billion during the Sirst quarter of Siscal year 201516. Sources told Customs Today that the FBR had allotted the collection target of Rs 16.25 billion for the Sirst quarter of the on-going Sinancial year 2015-16. The
revenue collection target of the Sirst quarter includes income tax, sales tax and federal excise duty. The target for the collection of income taxes was set at Rs 6.8 billion. The Regional Tax OfSice Multan collected income tax of almost Rs 7 billion against the set target of Rs 6.8 billion during the period of the Sirst quarter of existing Siscal year. Almost 100 percent target of income tax has been attained by the Regional Tax OfSice in the Sirst quarter of the Siscal year 2015-16. The assigned target of sales tax collection for Regional Tax OfSice Multan from the FBR for the Sirst
quarter was Rs 8.80 billion during the current Siscal 2015-16. About Rs 8.98 billion amount of sales tax has been collected by the Regional Tax OfSice Multan from the potential tax payers. Almost 102 percent sales tax target has been achieved during the Sirst quarter of the current Siscal year 2015-16. The FBR has allotted the collection target of almost Rs 470 million of federal excise duties to Regional Tax OfSice Multan for the Sirst quarter of the existing economic year 2015-16. The Regional Tax OfSice Multan collected almost Rs 130 million during the Sirst
quarter of the current Siscal year 2015-16. The Regional Tax OfSice Multan remains unsuccessful to achive the federal excise duties target during the Sirst quarter of the Siscal year 2015-16. Overall the Regional Tax OfSice Multan collected target effectively against the set target of Rs 16.11 billion against the set target of Rs 16.25 billion including income taxes, sales taxes and federal excise duty for the Sirst quarter of the present Siscal year 2015-16. Meanwhile, Federal Board of Revenue (FBR), Regional Tax OfSice Faisalabad surpassed the col-
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lection target for the month of September, 2015. The Regional Tax OfSice was assigned collection target of Rs 1906 million for month of September. Talking to Customs Today Chief Commissioner RTO Mohammad Khalil Ahmed said that Regional Tax OfSice Faisalabad achieved revenue target of Rs 2476 millions against the set target of Rs 1906 million which is 31 percent more than assigned target. The revenue collection target for the month of September includes income tax, sales tax, and federal excise duty.