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ISLAMABAD
TARIQ DERYA
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he Ministry of Commerce has devised a comprehensive policy to monitor the performance of commercial attaches and trade ofOicers appointed in different countries in the world. In this regard, performance sheets of different ofOicers are prepared in result of video conferences
on monthly basis. Under this policy, nonperforming or ofOicers with bad performance will be called back and efOicient and active ofOicers will be deployed as commercial attaches or commercial ofOicers to enhance national exports and trade volume with different countries. In this regard, cases of a few nonperforming commercial ofOicers have been moved to the competent authority for appropriate disciplinary action against them” these
Vol 2, Issue No. 213
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disclosures were made by Secretary Commerce while brieOing the Senate Standing Committee on Commerce and Industry here. Muhammad Youna Dagha, further said that Ministry of Commerce was quite cognizant of the importance and signiOicance of performance of trade ofOicers therefore the said policy had been devised after long and detailed discussions with the all the stakeholders especially with exporters as well as Pakistani diaspora in different countries.
MoC finalizes policy to monitor performance of commercial attaches abroad
Customs I&I seizes huge quantity of NDP goods near Motorway Chowk
‘FBR IR Enforcement network minimizes illegal trade of tobacco’
Por t of S an Luis CB P Officers s e i z e $ 7 7 6 K i n d r u gs
Customs Preventive generates Rs7317.56m as all duties & taxes
Ministry of Commerce has devised a comprehensive policy to monitor | SEE pAgE 01 |
Customs I&I has impounded a container load with foreign origin NDP goods | SEE pAgE 02 |
As a result of strenuous efforts by the FBR illegal trade of tobacco has been reduced | SEE pAgE 05 |
Last week US Customs and Border Protection officers at Arizona’s Port | SEE pAgE 07 |
Collectorate of Customs Preventive has shown outstanding performance | SEE pAgE 08 |
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FBR exempts WHT on cash withdrawal to promote digital payment Friday, September 29, 2017
National
ISLAMABAD: With the aim to promote digital payment, Federal Board of Revenue (FBR) has exempted withholding tax on cash withdrawal by branchless banking agents. In Circular No. 4 of 2017 issued by the FBR stated that tax at the rate of 0.3 percent and 0.6 percent is deducted upon aggregate cash withdrawals exceeding Rs.50,000 per day by filers and non-filers respectively. In order to promote digital payments in the country exemption has been accorded to branchless banking agents operating under the Asaan Mobile Account Scheme from withholding tax on cash withdrawals made for the purpose of making payments to their respective customers.
customs I&I seizes huge quantity of nDp goods near motorway chowk
ISLAMABAD
ISLAMABAD
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ederal Board of Revenue (FBR) has given sales tax exemption to all IT services under the Islamabad Capital Territory Tax on Services Ordinance of 2001. According to the budget instructions revealed by the FBR, sales tax on IT services is being exempted under the Islamabad Capital Territory Tax on Services Ordinance of 2001 via SRO 590(1)/2017. Having said that, sales tax on some services is chargeable at 5% without an input tax adjustment or refund. These ‘services’ will now include services provided at marriage halls or outdoor functions. As the month draws to a close, there is a buzz in companies across Pakistan to file the income tax return for the year. In order to make the process more efficient, the FBR has partnered with banks and other financial institutions to increase awareness and importance of filing for income tax returns. According to Finance Minister Ishaq Dar, only 29% of the National Tax Number (NTN) holders filed tax in 2016 which makes roughly 1.1 million people of the entire Pakistani population. Clearly, there is a need to educate people in this regard and hence FBR has taken steps to help citizens “fulfil their national obligation”.
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irectorate General of Customs Intelligence and Investigation has impounded a container load with foreign origin non-duty paid miscellaneous goods including almonds, cashew nuts, Oig, raisins, dry apricot, green tea, skin stapler, ladies bag and suite cases worth Rs 7.7 million by evading duty and taxes of Rs 2.2 million. Source told Customs Today that on a tip off, an anti-smuggling team comprising Intelligence OfOicers Maqbool Ur Rehman, Shahid Majeed and Qaiser Khan intercepted a Nissan trailer bearing registration no: TLH 580 loaded with container no: INKU 2848862 coming from Peshawar near Chungi No. 26 Motorway Chowk Islamabad being driven by Muhammad Riaz Khan. Sources said that the search of the vehicle was conducted in the presence of the driver which led to the recovery of nine bags of (each 64 kilogram) total weight 676 kg of foreign origin almonds with soft outer husk (with shell), 10 bags of (each bag 80 kg) total weight 800 kg foreign origin almonds without shell, Oive bags (total weight 220 kg) of foreign origin cashew nuts, 180 kilograms of Oig, 486 kilograms of foreign origin raisins, 1750 kilogram apricot without seeds, 70 kg green tea, China origin suite cases
fBR gives sales tax exemption to IT services
size 3×1 20.24.28, China origin suite case, skin stapler 1 carton, foreign origin ladies underwears 145 kilogram, ladies beauty boxes, and school bags. On demand the driver could not produced any evidence regarding legal import or lawful possession of recovered foreign miscellaneous goods except bilties , issued by Peshawar Lahore Goods Transport Co.( Regd) opposite truck
stand Haji Camp Peshawar. Anti smuggling team seized the foreign origin miscellaneous goods along with Nissan trailer loaded with container being smuggled one under section 168 of the Customs Act 1969. Meanwhile, Directorate General of Customs Intelligence & Investigation has conOiscated a huge quantity of non-customs-paid vehicles from twin cities during the last two weeks. The
Customs ofOicials, on direction of DG Shaukat Ali, launched a drive against such vehicles in posh areas of the federal capital and Rawalpindi. The ofOicials conOiscated non-customspaid vehicles worth Rs30 million from E-11, F-10, Zero Point, G-10, 4 in Islamabad and Sadar, Pir Wadhai Morr near Johar Chowk, Riphah University and Qasim Market in Rawalpindi.
Ihc adjourns hearing of case filed by m/s Aftab Traders I
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slamabad High Court on date in ofOice hearing on a customs matter involving M/s Aftab Traders and Model Collectorate of Customs. IHC bench comprising Justice Athar Minallah heard the matter. Collector Customs had Oiled the case against M/s Aftab Traders. Meanwhile the bench also dated in ofOice hearing on cases submit-
ted by M/s Pakistan Tobacco Company Limited. The bench issued notices to parties to ensure their presence before the court and dated in ofOice hearing. M/s Pakistan Tobacco Company Limited had Oiled the reference in which the company had challenged a show cause notice issued by the Large Taxpayers Unit, Islamabad. M/s Pakistan Tobacco Company Limited had contested show cause notices issued by the Oield ofOices of Federal Board of Revenue.
According to details, M/s Pakistan Tobacco Company Limited had challenged recovery of issued to it in head of outstanding sales tax by the LTU, Islamabad. M/s Pakistan Tobacco Company Limited had submitted the department had issued the demand for the tax year 2010 in head of sales tax. Federal Board of Revenue (FBR), officers of LTU including Commissioner Inland Revenue, Commissioner Inland Revenue (Appeals) and Appellate Tribunal
Inland Revenue (ATIR) were made respondent in the case. Meanwhile, Islamabad High Court division bench comprising Justice Athar Minallah and Justice Miangul Hassan Aurangzeb relisted a customs matter submitted by Model Collectorate of Customs on Wednesday. IHC bench relisted the mater for rehearing during next week along with other similar cases. The court also issued notices for relisting of the matter. Collector Customs had filed the
case against Nusrat Yaqoob. The matter was pending with the court since 2014. Meanwhile the bench also dated in office hearing of cases submitted by M/s PakistanTobacco Company Limited. The bench issued notices to parties to ensure their presence before the court and dated in office hearing. M/s Pakistan Tobacco Company Limited had filed the reference in which the company had challenged a show cause notice issued by the Large Taxpayers Unit, (LTU) Islamabad.
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s a result of strenuous efforts by the Federal Board of Revenue (FBR), illegal trade of tobacco has been reduced and legal trade has captured the market, raising revenues collections in the form of duties and taxes. In March this year, the FBR had directed IR Enforcement Network to expand the scope of regional enforcement hubs to check illegal tobacco and cigarette trade in the country. The Regional Enforcement hubs were also established in Multan and Bhawalpur etc to intensify the drive against the illegal trade of tobacco and cigarettes. In this regard, Tanvir Akhtar, Chief Commissioner Inland Revenue Regional Tax OfOice (RTO) Rawalpindi, who was also central co-ordinator of IR Enforcement Network on illicit tobacco/cigarette trade, gave detailed brieOing on performance of “IR Enforcement Network� at FBR House. According to Chairman FBR Tariq Mahmood Pasha, the broad role in the enforcement network included identifying core stakeholders of the sector, conducting discrete market surveys, providing legal advice to the Oield formations, compatible tax analysis, plugging existing loopholes, co-ordination and highlighting raids and seizure in the media. While brieOing the Senate Standing Committee on Finance and Revenue, Tariq Mahmood Pasha said that the IR Enforcement Network engaged in the development of strategy to combat illegal cigarette trade in Pakistan, especially to address foreign non-
duty paid/counte factured non-tax p AJK cigarette man facturing in no FATA/PATA, track rette manufacturi dormant cigarette ing of IR resource joint enforcement tails of raids and s and electronic me with FATE wing, F Chairman FBR tee reg rates o prov
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erfeit brands, locally manupaid cigarettes, dumping by nufacturers, cigarette manuon-taxable territories i.e. king Alternate/mobile cigaing facilities, monitoring of e manufacturing units, pooles (human and physical) for t initiatives and highlight deseizures in the national print edia through co-ordination FBR. further briefed the commitgarding change of Sales tax on petroleum without the apval of the Cabinet in July, 2017. He mentioned that ex-post facto approval
ner missio m o c f ie e x oďŹƒc tar, ch nal Ta o i g e R s also venue ho wa w t , i d n pi emen Rawal Enforc R I f o nator arette o-ordi cco/cig a b o t n illicit fing o ork on ed brie l i a t e ent ve d forcem n de, ga E R I f“ ance o house rform at fBR â€? k r o netw
had been taken from the Cabinet because at that particular time, the Cabinet stood dissolved. Senator Saleem Manviwalla demanded clariOication on how the sales tax was changed. Chairman FBR replied that a formula was incorporated and orders were not made in FBR but it was a policy decision taken in higher echelons. However, now in the new policy, the Cabinet approval was not mandated. Senator Osman Saifullah Khan showed concern whether increase in revenue was due to increased tobacco consumption. Upon this point, Chairman FBR ensured that there had been signiOicant increase in enforcement of policies which led to better revenue output. Senator Kamil Ali Agha raised concern over an unprecedented issue of misuse of authority by customs ofOicials as reported by a news channel. He apprized the Chairman FBR to initiate investigation into the matter to determine its validity and authenticity. The Chairman FBR agreed to comply and report back in the next meeting. Senator SaleemMandviwalla inquired whether rules had been made under Benami Act, 2017, to which the Chairman FBR responded with positive input that Ministry of Law and Justice had vetted the rules and a summary had been prepared for approval in next Cabinet meeting. Senator Kamil Ali Agha wanted to postpone the issue of providing subsidy to the sugar mill owners on the account that the manufacturers of sugar failed to compensate the sugar growers. The State Bank responded that due instructions had been given to the banks on the issue of extension of maturity period for repayments of overdrafts by Sugar Mill Industry.
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EDIToRIAL
Question of external debts
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ccording to the latest data released by the State Bank of Pakistan, the total external debts and liabilities of the country have shockingly increased to $83 billion a t the end of fiscal year 2016-17. A sum of $9.1 billion was added to the debt in June this year alone, indicating the imminent danger of financial crisis where debt servicing could come as major issue for the nation. With regard to the size of the economy, the debt and liabilities have increased to 78.7 percent of the gross domestic product, which is more than the bench mark of the world financial institutions for developing countries, including Pakistan. In a report issued earlier, the International Monetary Fund had assessed the external debt at $79.1 billion, but the government has failed to apply brakes on acquiring loans. In rupees terms, the country’s total debts and liabilities have increased to Rs25.1 trillion, exposing the ability of Finance Minister Ishaq Dar as fund manager. Mr Dar takes credit for stability of rupee, but in financial terms, he is a total failure and his claim of financial stability also remains a myth than reality. The debt burden on average Pakistani has also increased from Rs91,000 in 2013 to Rs120,381 in 2017, showing an increase of 32 percent in four years. The growth in total debt and liabilities was 11 percent last year, showing only one fact that economic situation is going from bad to worse. The bank data suggests the total debt is now equal to 75 percent of the gross domestic product while the gross public debt has increased by Rs1.732 trillion in one year. Instead of bringing reforms in the financial sector, the government allegedly opted to revise the definition of public debt. The current public debt is itself a violation of the law and original limit set under the Fiscal Responsibility and Debt Limitation Act, 2005. The burden of loans is again pressuring the government to rationalize the rupee value. If rupees is devalued, the external debt would phenomenally grow to an alarming proportion. It is the classic example of financial failure and blind acceptance of loans is another example administrative failure. It time the government policymakers should stop lip service and take some practical steps to save the country from a possible default.
Export of value added goods A
LAHORE
DR AfTAB AfZAL
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ccording to a report issued by the Pakistan Bureau of Statistics,the exports of value-added textile products have recorded an increase of 16.5 percent during the first two months of the fiscal year 2017-18. The exports of readymade garments have grown by 15.65 percent year-on-year to $418.63 million in July-August, making the value added products a driving force to boost the overall exports. At a time the world economies are trying to stimulate business and trade activities, the economy of Pakistan is going down which should be a
matter of concern for the government policymakers. However, political instability and unidentified expediencies are the other reasons coming in the way of economic growth. According to financial experts, Pakistan has all the necessary components to push itself to the developed economies, but whenever it takes a step forward, something unusual happens and it takes two steps back. This routine has been going on since independence. The export data reveals that exports of knitwear has posted a growth of 7.53 percentby earning $439.26million in two months. The bedwear exports have noted over 8 percent risein
terms of money and earned $384.32million while it has recorded a growth of 8.79 percent in terms of quantity. It is good omen that the exports are focused on the value added goods rather than food items which are already insufficient to feed the growing population. The business circles hope the value-added sector has the potential to record growth in overall exports as well as the economy. This is probably the first time in over three years that exporters have fully exploited the preferential access to the 28nation European Union under the GSP plus scheme by exporting the value-added textile products. However, a setback is
recorded in the export of cotton yarn which has fallen by four percent in value and over three percent in terms of quantity. Official circles hold the low demand of yarn in China as the main cause of low yarn export. The export of raw cotton has also dropped by 14.7 percent in value and 14.15 percent in volume during in the first two months of the financial year 2017-18. Unfortunately, the exports of fine quality rice has witnessed a growth of 40 percent which will earn foreign exchange, but could create inflation in the country. Instead of food items, the government should encourage the export of petroleum products, carpets and sports goods.
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Sri Lanka tea export earnings top US$ 1 bn mark up to August Friday September 29, 2017
World
COLOMBO: Sri Lanka’s tea export earnings has topped US$ 1 billion mark by the end of August 2017, up by 20% from a year earlier, according to tea broker Asia Siyaka Commodities. Customs data analyzed by Asia Siyaka Research confirms that the country earned $ 1.002 billion during the period from January-August 2017; up a sharp 20% on last year’s earnings of $ 834 million. The highest US dollar earned from exports for the eight-month period was $ 1.092 billion achieved in 2014. Sri Lanka exported 214.6 million kg (MnKg) during January-August 2014. However, this year’s export quantities are at an eight-year low of 190.1 million kg. In 2016 Sri Lanka even with the poor weather conditions shipped 197.3 million kg.
port of San Luis cBp officers seize $776k in drugs
norway jails top policeman for smuggling hashish OLSO
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ast week US Customs and Border Protection officers at Arizona’s Port of San Luis arrested two and seized more than 93 pounds of cocaine, heroin and methamphetamine during separate encounters The first incident occurred when officers stopped a 2004 Hummer H2 for secondary inspection. A CBP canine alerted officers to the possibility of drugs in the vehicle’s rocker panels. Officers searched the vehicle and discovered 22 pounds of cocaine, 35 pounds of methamphetamine, and more than 2 pounds of heroin. According to CBP the drugs were worth a combined estimate of $396,000. During a second stop a 2010 Dodge truck was pulled for secondary inspection after a CBP ca-
Sri Lankan rupee ends firmer exporters sell dollar he Sri Lankan rupee ended firmer on Wednesday as dollar selling by exporters surpassed mild demand for the greenback from importers, dealers said. The spot rupee ended at 152.70/85 per dollar, compared with Tuesday’s close of 153.10/20. “Lack of dollar demand helped appreciation,” said a currency dealer requesting anonymity, “A foreign bank, which bought (dollars) over the last few days to service takeovers, was not seen active today,” The dealer added, referring to last week’s big ticket equity deals in the market. Last week, diversified conglomerate Hayleys Plc said it purchased 61.73 percent of Singer Sri Lanka Plc for 10.9 billion rupees ($71.27 million) from Retail Holdings (Sri Lanka) BV a subsidiary of Retail Holdings. –CB Report
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nine alerted officers to possible drugs in the vehicle. Officers searched the truck and found 34 pounds of cocaine hidden in the firewall behind the dash. It was worth an estimated $380,000. Both vehicles and all the drugs were
seized and the drivers – both from Mexico were arrested and now face narcotics smuggling charges. According to CBP, the suspects have been turned over to U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Bank pan Indonesia Tbk (pnBn.Jk) shares tick down -1.91%
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hares of Bank Pan Indonesia Tbk (PNBN.JK) have been trending lower over the past five bars, revealing bearish momentum for the shares, as they ran -1.91% for the week. Looking further out we note that the shares have moved -4.21% over the past 4-weeks, 17.82% over the past half year and 17.14% over the past full year. Bank Pan Indonesia Tbk (PNBN.JK)’s Williams Percent
Range or 14 day Williams %R is currently at -76.92. In general, if the reading goes above -20, the stock may be considered to be overbought. Alternately, if the indicator goes under -80, this may show the stock as being oversold. The Williams Percent Range or Williams %R is a technical indicator that was developed to measure overbought and oversold market conditions. –CB Report
senior Norwegian police ofOicer has been sentenced to 21 years in prison for taking bribes and aiding a notorious drug smuggler. Eirik Jensen, who was responsible for combating organised crime in the capital Oslo, was arrested in 2014. A court found he had received at least 667,800 kroner (€71,300, £63,200) in bribes to help smuggle tonnes of hashish into Norway. He denies the charges and plans to appeal, his lawyer said. Jensen’s 21year sentence for corruption was the maximum permitted under the law, and a rare event in Norway. It is frequently named one of the least corrupt countries, and placed sixth in the 2016 global rankings by anticorruption watchdog Transparency International.
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Jensen helped smuggle nearly 14 tonnes of the cannabis resin between 2004 and 2013, his trial heard. A key witness was his co-conspirator, hashish smuggler Gjermund Cappelen, who admitted importing the drug and was sentenced to 15 years in prison. Norwegian media report his sentence was reduced in exchange for his co-operation in exposing Jensen. Jensen and Cappelenm exchanged hundreds of text messages over a decade, some of which included coded details of police and customs activity, Oslo’s district court was told. Jensen’s legal team maintained they were indicative of a police ofOicer conducting normal investigative work with an informant. Judges, however, were not convinced. The court found the messages had been sent in “simple codes”, broadcaster NRK reports (in Norwegian), and that texts about “sunshine” were designed to indicate that Cappelenm was not under police observation and could safely import his product.
greece e-commerce turnover rises urnover of e-commerce in Greece is on the rise, according to figures from European association Ecommerce Europe. More specifically, turnover in Greece increased to 4.5 billion euros last year from 3.8 billion euros in 2015. According to the General Secretariat for Trade and Consumer Protection, this rise confirms both Greek consumers’ growing confidence in online markets and the increasing participation of Greek retailers in e-commerce. The latest figures were presented to Parliament a few days ago by the General Secre-
tariat as part of an audit. According to the Athens-Macedonian News Agency, the leftist-led government is promoting a draft law that will seek to safeguard the rights and economic interests of consumers. Among the many goals is the facilitation of e-commerce providers, reducing compliance costs and ensuring a level playing field with foreign providers. Meanwhile, In a bid to close in on some 3.8 million taxpayers who owe an estimated total of 95 billion euros in overdue debts to the Greek state, the Independent Authority for Public Revenue. –CB Report
uk customs model unlikely to achieve frictionless trade
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LONDON
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t Southampton docks, a top British port for trade with countries outside the EU, the scene is one of frictionless international commerce. It’s a model that business leaders hope will also work well with Europe after Brexit,
but fear it won’t. Cranes lift containers smoothly on and off enormous ships berthed at the quayside while rows of new cars await shipment to destinations including the United States and Asia. There is little sign of the customs border that Britain maintains with most of the world apart from European Union states, thanks to a long-reOined system of goods declarations com-
pleted electronically as ships plough to and from the country. Less than two percent of goods passing through Southampton, which lies on the south coast of England, are subject to physical checks by customs ofOicials, according to its owner, Associated British Ports. At the moment Britain has no such customs border with the EU, a free-trade area of 28 states, but it is
likely to reimpose one when it leaves the bloc in March, 2019. If London and Brussels fail to strike a trade deal, each side will start imposing import duties on each other’s goods. Few people believe the current system for non-EU trade can be replicated for EU goods without disruption at the seaports through which 95 percent of Britain’s international trade moves.
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FBR extends range of concessionary tax regime ISLAMABAD: Federal Board of Revenue (FBR) has further extended the concession of reduced rate of minimum tax at two percent of gross turnover from all sources to building maintenance services, services rendered by Pakistan Stock Exchange Limited and Pakistan Mercantile Exchange Limited for the Tax Year 2018. The FBR, explaining the major amendments in Income Tax laws through Circular No. 04 of 2017, said that through amendment made vide the Finance Act 2015, the tax deducted from payment on account of services.
Friday, September 29, 2017
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customs preventive generates Rs7317.56m as all duties & taxes during 25 days KARACHI wAQAR AhmED AnSARI www.customsbulletin.com
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he Collectorate of Customs Preventive has shown outstanding performance during 25 days of September. The Collectorate of Customs Preventive has collected Rs7317.56million of Customs Duty, Sales Tax, Income Tax and Federal Excise Duty during 25 days of September 2017. Official sources told CT that Customs Preventive generated Rs2874million as Customs Duty, Rs3488million of Sales Tax, Rs741.85million as Income Tax and Rs214.12million of Federal Excise Duty. Sources further said that Collector Customs Preventive Iftikhar Ahmad has lauded the performance of the officials of the Collectorate. During a meeting, he hoped that the entire team of the Customs Preventive would do extra efforts to achieve the additional targets. The Collectorate of Customs Preventive has received Rs5262.95million of Customs Duty, Sales Tax, Income Tax and Federal Excise Duty during the first 18 days of September 2017. It is necessary to mention here that the Collectorate of Customs Preventive has got
Rs10225million as Customs Duty, Sales Tax, Income Tax and Federal
Excise Duty (FED) during the month of August 2017.
A close source said the Collectorate of Customs Preventive will
take big actions against defaulters after the Ashora.
mobile companies paid over Rs42.5 billion tax in 5 years ISLAMABAD
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he mobile companies providing cellular services in the country have paid an amount of Rs42,549.3 million tax during last Oive years. The major contribution by these companies in term of tax payment was Rs10,358.3 million during year 2013-14. The yearwise break up issued by Finance
Division on Sunday revealed that during year 2012-13 the amount of tax paid was Rs6,419.3, Rs10,358.3 million during 201314, Rs8,286.9 million during 201415, Rs8,149.5 million during 201516, and during 2016-17 the mobile companies paid tax of Rs9,335.3 million. The mobile companies providing cellular mobile services in the country are CM Pak (Zong), Pakistan Telecom Mobile Ltd (Ufone), Pakistan Mobile Communications (Mobilink), Telenor Pakistan and Warid Telecom (now merged with Mobilink). Regarding mechanism evolved to conduct au-
dit of receipts and income of those companies, the data further revealed that audit is conducted under three tax statues ie Income Tax Ordinance, 2010, Sales Tax Act, 1990 and Federal Excise Act, 2005. The audit commences after case is selected for audit under section 177/214C of Income Tax ordinance, 2001, section 72B/25 of Sales Tax, Act, 1990 and Section 46/42B of FED Act, 2005. The selection is done by both the concerned Commissioner and Federal Board of Revenue (Audit selection is based on different risk parameters (viz-a-viz ITO, 2001, STA, 1990
and FEA, 2005) such as excess claim of P&L expenses, low profitability to assets ratio, consistently many years, high ratio of input tax to output tax and carry forward of input tax. After selection of case for audit “Audit Manual” prescribes a pre-audit conference with taxpayer in which scope of audit and timeline to complete audit is decided. Consequently “Information Document Request” (IDRs) is issued for seeking relevant records and information. After obtaining books of accounts and documents provided by the taxpayer an audit report is pre-
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pared and if required a post audit conference is again conducted with taxpayer to apprise legal and factual discrepancies. Thereafter, legal notice to amend the assessment order/return of taxpayer is issued to provide lawful opportunity. After affording such opportunity amended order is passed containing discussion and Oindings of tax audit ofOicer, which is served upon taxpayer along with tax demand notice. Some other aspects of tax affairs of taxpayers are also taken into consideration while auditing the case and these are: veriOication of withholding taxes.