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pAkISTAN’S FIRST INDepTh NewSpApeR oN CuSTomS
Vol 1 Issue No. 30
karachi, Tue Sept 10 - mon Sept 16, 2013
weekly
Regd. No, mC-1381
— Exlusive Customs Today photo
Dar eyes revenue target
In order to meet tax targets, revenue officials will have to improve their performance and demonstrate their administrative abilities, says Ishaq Dar | See pAge 6 |
Tariq Bajwa dissatisfied ISLAMABAD
FAIZA ISRAR
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In order to broaden the tax base, Bajwa issued directives to the officials to expedite the revenue collection and cover the financial losses. | See pAge 7 |
Nisar stresses performance
Member Customs emphasized upon integrity, performance and revenue generation of Customs Department. | See pAge 07 |
Cartoons Special
| See pAge 11 |
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he key role of the Administration Wing of FBR is overall administration of the Board, its attached departments and field formations, including transfers and postings, appraisals, processing and monitoring of all development projects. The entire budget of FBR is also managed and supervised by the wing. This was stated by Shahid Hussain Jatoi, Member Administration in Federal Board of Revenue in an exclusive interview with Customs Today recently. He said that like any other organization FBR has an effective Administration Wing which is performing its duties with great responsibility. He said that the Administration Wing has launched another effective system namely HRIS, the first of its kind by any organization in Pakistan. Complete data and record of all the officers and their performance is stored and maintained through this system. This method provides all the required information of each officer with a single click. He said that Admin Wing remains watchful to ensure that transfers and postings are decided on merit and sees that no ambiguity is left in this regard. Admin Wing makes transfers and postings up to 19 grade officers and the rest are made by the Central Selection Board. Answering a question he said it is true
that the wing has to face pressures from different circles, including politicians, regarding transfers and postings but under the supervision of Tariq Bajwa, Chairman FBR, all the work is carried out absolutely on merit. Under the new set-up, the Administration wing is working in a congenial atmosphere and exercising its free will in the selection of officers at important places. Replying to a question, he See page 02
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02 NATIONAL
SEPTEMBER 10 - SEPTEMBER 16, 2013
Dubai Customs foils smuggling attempt of 2.7kg of marijuana
Dubai Customs inspectors at the Cargo Village seized 2.7kg of marijuana in a parcel crossing through Dubai in transit between two Asian countries. Saeed Ahmed El Tayer, Director of the Department of Air Customs Centres in Dubai Customs, disclosed that the parcel sender attempted to hide the narcotic drug between clothing items (trousers and a jacket). When the parcel was passing through the x-ray device, it reflected abnormal density in this particular parcel.
The lynchpin that holds the system together and keeps it going said that infrastructure maintenance of FBR buildings, on rent or owned, is also a basic function of our department.” We deal with maintenance and construction of buildings, offices and even residences of officers.” Similarly, other assignments like holding training sessions for officers, supervising their promotions, helping in career planning, managing their leaves, taking disciplinary actions against them and above all hiring and firing of officers are all in the line of duty of the Administration wing In addition, the department also deals with seniority cases, qualification issues, performance and evaluation reports and overall professional reputation. In other words, career profile mechanism is the responsibility of the department. Replying to another question, Mr Jatoi said that if complaints against FBR officers are anonymous and of general nature and allegations do not contain any evidence, then there would hardly any justification for taking action. However, complaints with specific details and evidences are first verified through various means and then a preliminary report is prepared to initiate disciplinary action against the officers. Apart from Admin Wing, he said other wings in FBR and government agencies simultaneously deal with the investigation of complaints about corruption and corrupt practices. He added that the culture of filing genuine complaints does not exist in our country due to various reasons like fear of retribution, lack of trust
— Exlusive Customs Today photos
From page 01
The wing has to face pressure from different circles regarding transfers and postings but under the chairmanship of Tariq Bajwa all the work is absolutely done on merit
and faith in the system and lack of knowledge of the legal rights of traders under various laws. He said that there is a proper mechanism established for complaints which is simple and quick in nature. “If we find any complaint in writing and there is nobody to own the complaint, we cannot work on it. We can only act upon specific details and material evidence. Once we find out any evidence, we initiate proceedings in this regard.”
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04 NATIONAL
SEPTEMBER 10 - SEPTEMBER 16, 2013
Bangladesh Customs holds Fonterra milk products over scare
DHAKA: Bangladesh authorities have restricted imports of powdered milk mostly from New Zealand dairy giant Fonterra following a contamination scare that has seen global recalls, officials said. Customs officials are holding more than 600 tons of milk mostly from Fonterra until mandatory chemical tests showed they were safe, a senior official in Chittagong said. “Samples have been sent for chemical tests, we will release them when reports confirm they are not containing any harmful bacteria,” joint secretary of customs office, Hasan, said.
ASO seizes smuggled goods worth Rs20m KARACHI
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odel Customs Collectorate’s Anti Smuggling Organisation (ASO), Quetta has seized smuggled goods worth Rs20 million. Led by Assistant Collector Preventive Amanullah Tareen, the anti-smuggling squads conducted three successful raids and thwarted bids to smuggle 28,000kgs of plastic granule of Iranian origin and seized over 15,000 litres of smuggled Iranian high speed diesel (HSD) and massive quantity of Afghan Transit goods including ghee, tyres and other Iranian food items. Sources revealed that the market value of the seized smuggled goods was Rs20 million. They said that the customs authorities, despite poor law and order situation, seized the largest-ever haul of plastic granules in Balochistan and the department was committed to carry out more anti-smuggling raids in future. Amanullah Tareen said that special squads were also deployed at all checkposts in the main areas of Dera Allahyar in Jafferabad District and Rakhni in District Barkaan.
Smuggledgoods worthRs3.5mseized
Newtaxescan destroyship breakingindustry KARACHI
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ens of thousands of workers associated with shipbreaking industry can lose their jobs due to new taxes imposed on the industry. “The ship-breaking is one of the main industries of Balochistan helping it grow economically,” the experts said. They feared that the industry could soon be closed permanently owing to Federal Excise Duty (FED). They explained that the ship-breaking industry was not only providing better quality steel at cheap rates to the nation but also generating jobs for the poor of the province. The industry was contributing Rs7 billion annually to the national exchequer on account of taxes and its closure, which it also endured during 2002-2007, would harm the country’s economy, they added.
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nti-smuggling scout number 1 seized miscellaneous goods worth Rs 3.5 million. Customs Anti-smuggling scout number 1 on a tip-off raided a truck full of various smuggled items including Aluminum Foil Paper 680 kgs, 2200 boxes of Indian bangles, auto parts and miscellaneous goods worth Rs 3.5 millions. Official sources said the scout raided the truck at Faizpur Interchange and seized it after getting sufficient evidences. The scout, consisting eleven constables and three inspectors following thorough examination confiscated the vehicle under Customs Act and registered a case against the culprits.
income tax five times higher than smelters, adding that the smelters had also some additional benefits as their income tax is adjustable and they are taking refund by paying only half per cent turnover tax. He asked FBR to give some relief to the ship beakers and reduce the sales tax on ship-breaking industry to Rs3,200 per ton.
The industry was contributing Rs7b annually to the national exchequer on account of taxes and its closure would harm the country’s economy
MCC Port Qasim issues 1100 ONO in ATT scam KARACHI
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Pakistan Ship Breakers Association (PSBA) Chairman Dewan Rizwan Farooqui has revealed that the ship-breaking industry has not only generated thousands of new jobs in the terror-hit province, but it is also providing quality steel at low rates to the people. He described that in 2006, the exchange rate was Rs65 per dollar and the price of steel bar was Rs 80,000, but currently the dollar is above Rs 100 and the steel bar – made by ship plates- is just of Rs 70,000. The PSBA chairman also suggested one per cent withholding tax (WHT) on smelters and ship-breakers instead of any FED. He explained that the federal government could generate revenue of Rs3.6 billion as the industry would pay this proposed tax at import stage and smelters have to pay on their consumed electricity units. Dewan said that the federal government had imposed 5.5pc income tax on the ship-breaking industry and 1pc on melting industry as the ship breakers were already paying
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he Model Customs Collectorate (MCC) Port Qasim has issued over 1100 Order-inOriginal (ONO) against importers, customs agents, national carrier (National Logistics Carrier) and border agents in Afghan Transit Trade (ATT) scam. According to details, ATT scam was unearthed in year 2007, exposing the fact that around 28000 containers destined to Afghanistan went missing. The Supreme Court while taking suo moto notice in ATT scam directed the Customs Department to carry out investigation into the matter and submit its findings. The Customs Department in its investigations held clearing agents responsible for the scam and also requested the SC to issue showcause notices to companies accused in ATT scam. Later, the Karachi Customs Agents Association (KCAA) filed a reply in the apex court against the show cause notices and requested
that an impartial investigation by National Accountability Bureau (NAB) should be conducted in this regard. In the application, the KCAA said that clearing/forwarding agents as per Public Orders 16/2000 and 5/2003 of the Customs Act are only responsible for goods until these are not handed over to the national carrier. And then the national carrier and border agents are responsible for delivery of goods. Under the provisions of Section 209 of the Customs Act, 1969, customs clearing agents are deemed to be the Principal (the Importer) in respect of the goods for which they are appointed as agent. Particularly, in case of transit cargo it is the customs agent/border agent who represents the importer in Pakistan and deals with the clearance of cargo until its final destination. It is pertinent to mention that FBR during last SC hearing in June issued 10,075 hearing memos to customs clearing agents in missing containers scandal and similar approach had again been adopted as the Model Customs Collectorate
kCAA filed a reply in the apex court against the show cause notices and requested that an impartial investigation by NAB should be conducted in ATT scam.
(MCC), Port Qasim had charged clearing agents, border agents and M/s NLC in missing containers scandal through three Order-inOriginals -- 21, 22 and 26. The sources said these orders were issued against three companies - M/s Haji Mamoor Ltd, Afghanistan, Ittefaq Ltd Afghanistan and Olyx Construction Company. The MCC, Port Qasim had charged rest of the companies in these orders by saying that "these orders shall apply to the following companies as mutatis mutandis having same facts and circumstances." Accordingly, the hearing opportunities were provided to the respondents but no one appeared to defend the case. It is pertinent to mention here that the MCC Port Qasim presented its view point in ATT scam on June 6, 2013 and issued more than 1100 ONO on September 4, 2013. Senior Vice President All Pakistan Customs Agents Alliance (APCAA) Arshad Jamal while commenting over the situation said that MCC Port Qasim stance was more in favour of Customs officials.
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SPECIALREPORT
SEPTEMBER 10 - SEPTEMBER 16, 2013
Govtcommittedtoincrease tax-to-GDP ratio through reforms:Dar The objective of the tax policy is to devise a system to ensure that the taxes are collected from each person according to his or her capacity. The citizens must be convinced that the taxes are collected fairly and equitably and the taxes collected will be properly utilized ISLAMABAD
Sm hAIDeR
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inance Minister Ishaq Dar said that the government is committed to transparency and accountability of each rupee collected as taxes and its utilization for the welfare, progress and prosperity of the nation. This he said while addressing Senior Officers of Federal Board of Revenue of South Region including Chief Commissioners, Commissioners of Inland Resource Service and Chief Collectors and Collectors at Customs House Karachi.Senator Ishaq Dar said that the importance and role of tax administration for national economy cannot be over-empha-
sized. The government, the Finance Minister said, is determined to increase the tax-to-GDP ratio through reforms in the taxation system as well as FBR. The Finance Minister said that we need to mobilize our resources to improve our infrastructure and launch projects of national importance for the economic progress of the country as well as a better future for our coming generation. Dilating on the measures taken by the government to increase tax collection, the Finance Minister said the government has imposed withholding tax on retailers and distributors, minimum tax on builders and developers and is focusing on sectors that are out of the tax net, besides giving access to banking in-
The measures taken by the government have started bearing fruits. In July 2013, exports showed an increase of 9.28% and current account surplus reached
$46 million against a deficit of
$426 million last year
formation of rich non-filers for bringing them in the tax net. The Finance Minister said that revenue officials will have to improve their performance and demonstrate their administrative and professional abilities to ensure that the revenue target of Rs.2475 billion set by the government is achieved through better governance and plugging of leakages. The Finance Minister said that taxation reforms introduced by the government include encouraging corporatization of economy -- for which several incentives like low rates for the corporate sector were included in the budget – increasing dependence on direct taxes, reducing tax-evasion by facilitating tax-payers’ compliance through
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SPECIALREPORT 07
SEPTEMBER 10 - SEPTEMBER 16, 2013
FBR Chairman, member Customs direct officials to achieve revenue target KARACHI
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hairman FBR Tariq Bajwa and Member Customs Nisar Muhammad Khan expressed their dissatisfaction over the revenue generation in the first quarter of the current fiscal year and issued directives to the officials to expedite the revenue collection and cover the financial losses. FBR Chairman also stressed upon measures to meet revenue target by the end of first quarter.
Chairman Federal Board of Revenue (FBR) Tariq Bajwa and Member Customs Nisar Muhammad Khan during their visit of Customs House Karachi held long hour meeting sessions with Customs officials including Chief Collector (Appraisement) Nasir Masroor, Chief Collector (Enforcement) Muhammad Yahya, Chief Commissioner Inland Revenue Service (IRS), Director Customs Intelligence and Investigation, Dr Manzoor Memon, Additional Director, Mumtaz Ali Khoso, other Collectors and Additional Collectors. Sources told Customs Today, “FBR Chairman and Member Customs emphasized upon integrity, performance and revenue genera-
tion of Customs Department”. Issues pertaining to Valuation, Transit Trade, Enforcement and IOCO also came under discussion but special focus remained on taking urgent measures to boost revenue generation, sources added. Sources in Customs Department informed Customs Today that the meeting sessions discussed in detail the Customs Service structure but performance of the officials in first quarter of the current fiscal year was also evaluated. It is pertinent to mention here that government has set the revenue target of Rs 2,491 billion for fiscal year 2013-14.
Chairman FBR, Member Customs and other senior officials of Customs also prepared a detailed performance report and presented it to Federal Minister for Finance Ishaq Dar. Chairman FBR also directed the Chief Collector (Enforcement) to prepare a detailed reply over Afghan Transit Trade (ATT) issue for presenting before Chief Justice of Pakistan in next hearing at Karachi Registry. Chairman FBR Tariq Bajwa and Member Customs Nisar Muhammad Khan could not meet the delegation of Karachi Customs Agents Association (KCAA) due to their hectic schedule.
Ishaq Dar chairs meeting sessions of Customs high ups
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simplification of tax procedures, simplifying the administration of taxes and compliance particularly for small businesses, broadening the tax base, eliminating the money laundering & whitening of black money, improving the process of self-assessment & audit compliance and helping the provincial governments to increase their tax revenues by accepting agricultural income only if provincial agricultural income tax has been paid. The Finance Minister said that the objective of the tax policy is to devise a system to ensure that the taxes are collected from each person according to his or her capacity. The citizens must be convinced that the taxes are collected fairly and equitably and the taxes collected will be properly utilized,
he added. The Finance Minister said that those who pay taxes should be facilitated and extended due respect so that their contribution is recognized. He expressed the confidence that the taxpayer would be facilitated and counseled to enable him to file declarations. The Finance Minister said that the measures taken by the government have started bearing fruits. In July 2013, exports showed an increase of 9.28%, current account surplus reached 46 million dollars against a deficit of $426 million in the corresponding period last year and record tax collection of Rs.134 billion & all-time high remittances to the tune of $1.4 billion were also witnessed. The Finance
Revenueofficialswillhave toimproveperformance anddemonstratetheir administrativeand professionalabilitiesto ensurethattherevenue targetof
Rs. 2475b set by the government
Minister expressed the confidence that with sincerity of purpose and hard work we can achieve our economic objectives by putting the economy back on track and bringing in macro-economic stability to ensure prosperity, welfare and development of the country. Earlier, the Finance Minister appreciated the efforts made by the tax administration of the South Region and their contribution to national tax revenue. The Finance Minister expressed the hope that they will redouble their efforts to meet their respective targets so that the revenue target of Rs.2475 billion set by the government for the current fiscal year was achieved. Mr. Tariq Bajwa, Chairman FBR was also present on the occasion.
ederal Minister for Finance Ishaq Dar directed the high officials of FBR, Customs and IRS to ensure the taxation measures for improving the revenue generation. Dar further asked the high ups to take effective steps in order to eliminate mal-practicing, corruption and other unfair means in FBR and Customs Department. Federal Minister for Finance Ishaq Dar led the meeting sessions at Customs House, Karachi. Chairman FBR Tariq Bajwa, Member Customs Nisar Muhammad Khan, Chief Collectors, Commissioner Inland Revenue Service (IRS), officials of Regional Tax Officers (RTOs), LTU officials, Collectors, Additional Collectors and Deputy Collectors attended the meetings. “Transfers and postings would be done only on merit and no political interference would be allowed in this regard”, the Finance Minister added. He further said that the appointment of FBR Chief Tariq Bajwa and Member Customs Nisar Muhammad Khan by the federal government is an open proof that the government is determined to improve the revenue generation of FBR.On the occasion, Federal Finance Minister reviewed the performance of FBR and Customs officials and asked them to work with dedication in the better interest of the country. Chairman FBR and Member Customs briefed the Federal Minister over revenue generation and utilization of best Customs officials at key posts for improving the revenue target.
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08 EDITORIAL
SEPTEMBER 10 - SEPTEMBER 16, 2013
Founder & Chairman Zulfiqar Ali Editor Nasim Ahmed editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk +92-322-3370002 www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
eDIToRIAL
TAX eDuCATIoN
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ax education is a concept largely unknown in our society. Tax is the life blood of an economy but no organized efforts have been made over the last 66 years to raise public awareness on taxation issues and impress upon potential taxpayers the need to fulfill their tax obligations. Only once or twice a year - at the time of filing of income and sales tax returns – advertisements are placed in newspapers urging people to pay their taxes. There is no campaign to explain to the people why they should pay their taxes promptly and what benefits they can derive from this. The result is that a very small percentage of the country’s population are taxpayers. The tax-to-GDP ratio in Pakistan is below 10 percent which contrasts sharply with the average of 18-20 percent in most Asian countries. In some social welfare states in Europe where the standard of living is very high this ratio goes as high as 28-30 percent. In these societies, the literacy rate is almost 100 percent and the common citizen is fully aware of his tax obligations to the state. The fact that the tax returns of the highest in the land are available for public scrutiny acts as an incentive to others to pay the taxes due from them. The entire system is sharply honed that there are few cases of tax evasion. And if somebody is found cheating, deterrent punishment is awarded to him. Not so here. The system is riddled with corruption. People widely known to have made their pile through illegal and dubious means are never called to account. It is only the salaried class and some honest businessmen who pay taxes regularly. Otherwise, it is free for all out there for everyone. The problem calls for a major shake-up of the whole taxation machinery, plugging of loopholes and ruthless accountability of those manning the department. Simultaneously, a tax education programme comprising talk shows, documentaries and special messages on radio and TV and articles in newspapers should be undertaken to apprise the general public of the importance of paying taxes. In this context, the Facilitation and Taxpayer Education (FATE) wing of FBR can play a significant role. In a special interview with Customs Today, Member FATE Riffat Shaheen Qazi said that plans are in hand to organise detailed workshops and awareness raising programmes for university students regarding income and other tax laws. All stakeholders, including individual taxpayers, tax bars, chambers, clearing and forwarding agents and withholding agents are to be involved in these programmes. She also said FBR’s online system has been upgraded and the website is regularly updated for the help and guidance of taxpayers. A major issue is lack of communication between taxpayers and tax authorities. To this end the department’s complaint registration system has been improved to ensure that problems are resolved at the earliest. FATE has also started printing brochures to explain the intricacies of various tax laws. This will be of great help to taxpayers. In this connection it will be a good idea if FATE organizes a series of lectures on the need and importance of tax for school and college students. This is a common practice in many Western countries. Without continuing tax education we cannot hope to bring about a positive change in the prevailing tax culture in our society.
Accountability key to improved revenue collection LAHORE
NASIm AhmeD
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here is little doubt that the PML-N government is determined to turn around the economy, and to this end it is bending all its efforts for generating and collecting more tax revenue. This is a sound strategy. The previous government borrowed heavily from the banks and inter-
national donors with the result that the national debt burden doubled within five years. Learning from the experience, the PML-N government wants to avoid the mistake. There is a big hole in the federal budget as the total tax revenue is much below the annual public expenditure. And the only way to plug the gap is to improve tax collection which at present forms a lowly less than 10 percent of the Gross Domestic Product (GDP).
For this purpose the government has put together a highly competent and motivated team of finance and tax managers who are well known for their professional expertise as well as integrity and commitment. On top of the hierarchy sits Finance Minister Ishaq Dar whose performance during Nawaz Sharif’s previous tenures earned him kudos from the international agencies. On the crucial tax front the government has posted as chair-
man FBR Tariq Bajwa, an officer with a distinguished record of service to his credit in the financial sector. Next to him stands Nisar Muhammad Khan, Member Customs whose duty it is to generate the maximum amount of revenue from the import-export trade. All three are tried and tested men in their own fields and focused on results. Already winds of change are blowing across the economic landscape and things are revving up in FBR.
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PICTORIAL
SEPTEMBER 10 - SEPTEMBER 16, 2013
China sets tax on low-grade coal imports
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SHANGHAI: China has announced a 3 percent tax on imports of steam coal with low calorific value but is yet to spell out details of its applicability, leading to uncertainty whether shipments from top low-grade supplier Indonesia will be subjected to the tariffs. Indonesia is the biggest seller to China of lignite, a form of low-grade coal, with its shipments accounting for 97 percent of China's total lignite imports in 2013 up to end of July. Moves by China, the world's top coal buyer, to slap an import tariff on lignite may dent sales of Indonesia.
IshaqDarvisitsKamilCustomsMuseum
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ederal Minister for Finance Ishaq Dar while talking to media during his visit to “Kamil Customs Museum said that the federal government is determined to restore law and order in Karachi. “Karachi is an economical hub of the country which contributes 68 percent of the total revenue in the national exchequer and the federal government would free the city and its people from criminal elements”, he added. He further said that the deteriorated law and order situation of the city is directly affecting the business activities and the businessmen along with their families have been shifted to other cities and abroad. “The flight of capital from the city is definitely a point to ponder for the federal government and it has decided to clean the Karachi from target killers, extortionists and other notorious criminals”, Dar added.– CT Report
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10 NATIONAL
SEPTEMBER 10 - SEPTEMBER 16, 2013
NZ Customs nets wildlife smuggler with fish in pants
WELLINGTON: A Vietnamese man’s attempt to smuggle tropical fish into New Zealand in his pants floundered when he tried to get through customs with his pockets dripping water, officials said. The man arrived at Auckland airport from Australia and officials suspected something was fishy because liquid was seeping from the bulging pockets of his cargo pants.The man initially said he was carrying water from the plane because he was thirsty but a subsequent grilling uncovered the presence of the fish.
Committee to resolve tax refund issues KARACHI
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pIAF-FoundersAlliance kick-startsitselectioncampaign
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Import of gold restored
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he PIAF-Founders Alliance on Tuesday kick-started its election campaign by inaugurating election office for Corporate and Associate Class LCCI polls scheduled for September 23 and 24 respectively. The ribbon-cutting was jointly performed by the PIAF-Founders Alliance leaders Mian Muhammad Ashraf and Mian Anjum Nisar in the presence of former LCCI Presidents Shahzada Alam Monnoo, PIAF Chairman Malik Tahir Javaid, LCCI President Farooq Iftikhar, Senior Vice President Irfan Iqbal Sheikh, Vice President Mian Abuzar Shad, former LCCI Presidents Tariq Hameed, Iftikhar Ali Malik, Mian Misbahur Rehman, Bashir A Buksh, Mian Shafqat Ali, Sheikh Muhammad Asif, Irfan Qaiser Sheikh, Shahid Hassan Sheikh, Syed Mohsin Raza Bukhari, Shahzad Ali Malik, Muhammad Ali Mian, Chaudhry Zafar Iqbal, former Senior Vice Presidents Engineer Sohail Lashari, Abdul Basit, Sheikh Muhammad Arshad, PIAF Senior Vice Chairman Khamis Saeed Butt, Vice Chairman Amjad Ali Jawa, LTIA Chairman Nasrullah Mughal, Executive Committee Members, representatives of Market Associations and office-bearers of Anjuman-e-Tajiran and Quomi Tajir Ittehad. Speaking on the occasion, PIAFFounders Alliance leaders Mian Muhammad Ashraf, Mian Anjum
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he government has restored import of gold for export of jewellery, Trade Development Authority of Pakistan said. The new procedure has been issued vide SRO - 760 (I) /2013 dated September 2, 2013. It may be recalled that the import of gold under the defunct SRO 266 was temporarily suspended for a month with effect from August 1, 2013 as per the directives of the Economic Coordination Committee (ECC). The government assured traders that it would allow the import in a month after revamping SRO-266 in order to minimise misuse.
They said the presence of such a large number of business community leaders at the inauguration ceremony was actually a show of confidence in the Alliance policies and the top leadership of the Alliance would fulfill their commitments in future as well. They said that the new LCCI leadership would be asked to utilise their best abilities for the cause of the business community and the country. They also hoped that the present government would come up to the
expectations of the business community and take all economy related decisions in consultation with the private sector. They said that the Alliance has the ability to solve the business community challenges by ensuring continuity in policies by winning all of the Associate and Corporate class seats on September 23 and 24. PIAFFounders Alliance also announced its candidates for Corporate and Associate Class.
Directorate Customs I&I facing shortage of staff, equipment KARACHI
LAHORE
Nisar, Shahzada Alam Monnoo, Iftikhar Ali Malik, Muhammad Ali Mian and PIAF Chairman Malik Tahir Javaid said that the country was passing through critical times and a true business leadership at every tier could help pull the country out of these economic issues. They said that the government would be asked to rationalise the energy prices in the larger interests of the manufacturing sector and the trading community.
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irectorate of the Customs Intelligence and Investigation (I&I), Karachi is facing shortage of staff and latest equipment. Sources in Directorate of Customs (I&I) told Customs Today that no new recruitment in the department has been made for last 15 years. “Sepoys, who are currently working in the department, are aged while no recruitment has been made in place of them”, he added. He further said that lack of office strength is also affecting the performance of Customs I&I but the department is providing best services in limited resources. “Due to limited resources, the department often faces difficulties to conduct any operation”, he added. “If the prevailing shortfall of employees and equipment is addressed, the Customs Intelligence and Investigation Department could safeguard more revenue by conducting raids”,
he added. When contacted Additional Director Customs Intelligence and Investigation, Mumtaz Ali Khoso said that the department has already written a letter to officials concerned in this regard and hoped that they will take appropriate action accordingly. It is pertinent to mention here that no new recruitment has also been made in Model Customs Collectorate (MCC) Preventive under grade 17 for last 15 years.
The department has already written a letter to officials concerned in this regard and hoped that they will take appropriate action accordingly, says mumtaz Ali khoso
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BR is likely to constitute a dispute resolution committee comprising tax officials and members from private sectors to address refund issues arising in the supply chain. “A standing committee comprising tax officials and members from FPCCI has been set up to resolve the refund issue arising in CREST software,” sources said. FBR recently launched the CREST (Computerized Risk-Based Evaluation of Sales Tax) software to check bogus claim of refunds. After cross checking of sales data and purchase through the software, FBR held up refunds worth billions of rupees. Subsequently, FPCCI raised the issue in a recent meeting with Finance Minister Ishaq Dar. The forum said it was injustice to penalise the entire supply chain when only one person is committing fraud. Afterwards, the Finance Minister directed FBR to hold discussion with the business community representatives to resolve their issues. The minister ordered FBR to form a committee of members from both the sides in this regard.
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SEPTEMBER 10 - SEPTEMBER 16, 2013
Australian Customs oďŹƒcer accused of importing drugs
SYDNEY: A female Australian customs official will front court after being charged with importing and trafficking drugs. The 27-year-old former border protection officer at Sydney airport was arrested on Monday by Australian Federal Police (AFP). She has since been charged with two counts of importing a marketable quantity of border controlled drugs and one count of trafficking.
CARTOONSSPECIAL 11
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SEPTEMBER 10 - SEPTEMBER 16, 2013
Rs3.734b collected on account of indirect tax
KARACHI: FBR collected Rs3.734 billion additional revenue on account of indirect tax. The Board generated Rs640.93m after raising standard rate of sales tax from 16pc to 17pc in local supplies as the impact of this increased rate on imports stood at Rs2.68b. FBR collected Rs131.26m from 1pc further tax on taxable supplies to unregistered individuals while Rs220.738m from withdrawal of 50pc exemption to KP selected districts, Fata and Pata, and Rs52.9m from withholding of whole amount of sales tax on purchases made from unregistered persons.
LAHORE
STAFF RepoRTeR
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t is very difficult for the Customs Department to clear import or export consignments worth Rs 65 billion without the active help of clearing agents. Their task is not only significant and important but they, in fact, are playing pivotal role after becoming a bridge between Customs officials and traders. Their role is like a lawyer who becomes mediator between a judge and a complainant. Customs clearing
mark of $41 billion. The total volume of imports and exports has reached $66 billion and Customs clearing agents are playing the role of catalyst in generating revenue in the shape of Customs duties. With over 1,200 licences, Customs clearing agents across the country are not only meeting the Customs Department’s revenue collection targets every year but they are also satisfying importers and exporters in preparing documents of their consignments and properly handling their cargos. Replying to a question, Agha Iftikhar dispelled the perception
Clearingagents: Bridgebetween
Customsofficials&traders The total volume of imports and exports crossed $66 billion and Customs clearing agents are playing a role of catalyst in generating revenue in the shape of Customs duties that Customs clearing agents are allegedly involved in wrong-doings. He clarified that only Customs clearing agents have made it possible for Customs Department to collect targeted revenue, otherwise it is impossible that Customs Department could raise such a hefty amount of over Rs220 million in the current fiscal year. He further said that Customs clearing agents are not working against the interest of the state rather they are helping all agencies concerned including Customs Department and other stakeholders like importers and exporters. Without the active help of Customs clearing agents, Agha Iftikhar claimed, neither the government can collect tax on imports nor can traders import items worth above $40 billion annually. He admitted that there are some black
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agents also hold licences which are issued by the competent authority. These views were expressed by Lahore Customs Clearing Agents Association President Agha Iftikhar while giving an exclusive interview to Customs Today at his Mughalpura Dry Port office. Agha Iftikhar further said that in the current fiscal year, Pakistan’s exports are estimated to be around $25 billion while its imports have been surpassed the
sheep among clearing agents also. This negligible ratio of black sheep is found in every department, he added. Agha Iftikhar further elaborated that imports and exports are a very sensitive issue. Sometimes people with vested interests try to export banned items like drugs. So Customs clearing agents collect complete information about their respective clients. If a clearing agent does not know the office, house and godowns of his importer client, how is it possible for him to locate his client at the time of investigation of exporting contraband items? Besides this, a clearing agent has to satisfy government officials so that a handsome amount in the shape of Customs duty on imports could be collected and deposited in national kitty. Replying to another question, Agha Iftikhar said that though all clearing agents are not highly literate persons but still they feel good when they are offered refresher courses or asked to participate in a seminar or conference for their capacity building. He further said that he has also attended a number of conferences not only within Pakistan but also abroad. For example, he said that he has just visited Sweden to attend a seminar which helped him to improve his knowledge regarding Customs issues, he added. Agha Iftikhar blatantly revealed that bureaucracy is the main hurdle to clearance of import consignments. He claimed that under a plan, Railways’ goods trains have been suspended to help the road transportation. Railways charge only Rs 50,000 per container from Karachi to Lahore while road transporters charge over Rs 150,000 for carrying same bonded container from Karachi to Lahore. Now, importers’ first priority is to clear their cargo containers at Karachi ports rather than from Lahore dry ports just to save their precious time as well as money.
Published by M. F. Riaz for Customs Today and Printed at Dhoom Printing Press Masheer Mahal Building, Off: I. I. Chundrigar Road, Karachi