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pAKISTAN’S FIRST INdEpTH NEwSpApER ON CuSTOMS
ABC Certified vol 2 Issue No. 31
Karachi, Tue August 19 - Mon August 25, 2014
weekly
Regd. No, MC-1381
Price Rs. 50.00
RS4,145MTAX EVASION
BOOSTINg ExpORTS
Customs moves to clip wings of Shaheen airline The Ministry wants the govt to take up the issue with Afghanistan to increase the trade volume with CARs to $15b, says Dastgir | SEE pAgE 06 | HuRTINg THE ECONOMy
Ports and Shipping Ministry takes all stakeholders into confidence to launch KarachiDubai speedy boat service. SEE pAgE 02 | MOvINg SHC
FBR
KARACHI
SOHAIL RAB KHAN www.customstoday.com
M/s Reliable Associates moves SHC against FIR lodged by the AIB, MCC Appraisement-West for wrong clearance of plastic molding materials | SEE pAgE 04 | CARTOONS SpECIAL
| SEE pAgE 11 |
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show-cause notice against M/s Shaheen Air International Limited for its involvement in huge tax evasion of Rs4,145 million has been issued by the OfPice of the Collector, Collectorate of Customs Adjudication-I. According to the details, the charges were leveled against M/s Shaheen Air International Limited that it was involved in huge duty/tax evasion of Rs 4,145 million by importing 47 aircrafts against different lease agreements and dismantling, removing and scrapping of 12 aircrafts out of the said 47 aircrafts. As per the details, it has been reported by Air Freight Unit (AFU), MCCPreventive, Karachi that a credible information was received to the effect that M/s Shaheen Air International Limited temporarily imported 12 aircrafts under different lease agreements of yester years and started scraping the same in
the year 2014 without prior permission of Customs authorities as required under Section 79 of the Customs Act, 1969. The sources informed Customs Today that in order to conPirm the information, the complainant and a team of Customs ofPicers from Rummaging & Patrolling Section, Jinnah International Airport Pakistan (JIAP) physically inspected the “On-ground” aircrafts of M/s Shaheen Air International Limited at Apron of JIAP on 1806-2014. After physical inspection, it was found that 12 different aircrafts belonging to M/s Shaheen Air International were parked in ground area behind Bay No.28 at JIAP and that the aircrafts bearing Registration Nos. AP-BIT, AP-BHA, AP-BJI, AP-BJH, AP-BIP, AP-BIR, AP-BIK, AP-BIS, AP-BIQ, APBHC, AP-BHB and AP-BIU with no intact Pittings therein including engines etc were removed. Subsequently, a team was formed to investigate the matter which was headed by Assistant Collector, AFU (Imports) and an appraising ofPicer. In the
Ehsan Khalid and Kashif Khalid, Chairman and CEO of Shaheen Air Int’l got pre-arrest protective bails from Sindh High Court
meantime, M/s Shaheen Air International Piled a petition No.3360/2014 dated 26-06-2014 in the Sindh High Court (SHC) for quashing the instant FIR which was in process of hearing. It is pertinent to mention here that the Ehsan Khalid Sehbai, Chairman Shaheen Air International and Kashif Khalid Sehbai, CEO Shaheen Air International had obtained pre-arrest protective bails from SHC on 26-06-2014 which was pending conPirmation by the Honorable Trial Court, but despite the fact that after obtaining the prearrest protective bails, yet they didn’t bother to join the investigation. The sources further revealed this scribe that the several letters and notices under section 165 of the Customs Act, 1969 were issued to the accused to join investigation and produce the relevant documents but to no avail. See page 05
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NATIONAL
AuguST 19 - AuguST 25, 2014
SCCI president seeks extension for ST return filing
SIALKOT: Sialkot Chamber of Commerce and Industry (SCCI) President Dr. Sarfraz Bashir has urged the Federal Board of Revenue (FBR) to extend the final date of submission of sales tax return. He said that due to the prevailing political unrest in the country, the business community has been facing difficulties while submitting their sales tax returns to FBR within the given time. He demanded the FBR to announce a month-long extension, to facilitate the business community.
ISLAMABAD
CuSTOMS TOdAy REpORT www.customstoday.com
PCCI Office has become battleground as clashes abrupt between companions of vice presidents and other officials on occupying the office room for vice president. A source told Customs Today that the main cause of the clashes was political nature as central leaders of FPCCI used the forum as political tool and has appointed federation body on their own, ignoring real representatives selected through voting of officials. He revealed that previously there was only one post of Chairman Coordination in FPCCI, but later to please the blue eyed officers, three seats of vice presidents were created and appointments on those seats were made on favouritism which instigated the clashes between officials. The source alleged that FPCCI business panel leader Tariq Sayeed has been enjoying his post for decades. He appointed three vice presidents in federation which was a share violation of rules and regulations and created confusions and clashes. “Munawar Mughal, a jeweller on his nominee paper rejection was appointed vice president while Sheikh Imtiaz, brother in law of Tariq Sayeed and Naima Ansari, nominee of Islamabad Women’s Chamber were also given charge of vice president”source added. Moreover, source said that struggle to occupy the vice president office has resulted in clashes between three vice presidents and their supporters.
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Appraisement-East registers FIR against Cosmos Enterprises he Research and Development (R&D) Section of Model Customs Collectorate (MCC) of Appraisement-East has registered an FIR against Cosmos Enterprises in its alleged involvement in tax evasion by clearing two consignments of miscellaneous goods from warehouse without paying the legitimate duty/taxes. The FBR sources informed Customs Today that the R&D Section of MCC Appraisement-East has nominated Abdullah, a clearing agent in the FIR as main culprit. The FIR stated that the Cosmos Enterprises through its clearing agent Abdullah found guilty of clearing two consignments of miscellaneous goods, without paying the legitimate duty/taxes to the tune of Rs8, 000,000. The sources revealed this scribe that the further investigation is underway in this regard and more recovery would be expected in next days. —CT Report
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defaulters: FBR to bring 191, 798 evaders under tax net Long marches, political upheavals demolish FBR’s efforts: Shahid Asad LAHORE
BTB brings over 12,232 evaders under tax net
M HAyAT
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he documents of Federal Board of Revenue reveal that total number of tax defaulters in the country stands at 191, 798, who are evading Rs286,213 million. It was stated in the documents that 181,290 defaulters have been evading Rs111,487 million income tax, 10,312 taxpayers evading sales tax worth Rs13,252 million while 196 have to pay Rs43,575 million as federal excise duty. A source explained that tax defaulters listed in document were those who had served with tax demand notices but failed to pay tax within the time given. It is important to mention that out of the said evaded amount of Rs286,314 million, FBR claimed a recovery of Rs195,495 million which lowered the amount to Rs90,819 million. The FBR ofPicials also admitted that Rs11,510 million out of the above amount were irrecoverable as demand was too old and whereabouts of the taxpayers were also unknown. A further sum of Rs 36,644 million has been under litigation process but FBR ofPicials were uncertain about the recovery of this amount as the cases have been pending for years. Source said that the record of the defaulters, default surcharge and penalties has been maintained on the basis of tax demand, rather than on income of the defaulters. Meanwhile, Federal Board of Revenue (FBR) ofPicials spokesperson Shahid Hussain Asad has expressed his grave concern over long marches and political upheaval ahead of FBR’s efforts to broadening the tax net for strengthening the economy. He said that these impediments could cause huge loss to the national exchequer as local business across the country shut down in result.
ahore Broadening ofTax Base (BTB) has brought 12,232 potential taxpayers under tax net which will add Rs 175-180 million to national exchequer during FY2014-15. According to details, Lahore BTB issued 18,000 notices to the potential taxpayers who have not been filing their returns evading huge taxes. Moreover, the BTB department created total tax demand of Rs 2 billion out of which Rs 400 million come under minus account. Sources said that Lahore has huge potential and the federal government’s target to bring in new 100,000 taxpayers under tax net from the city.“Lahore BTB department has started secret survey which will enlist commercial high rises, cafés, shopping centers, general stores paying electricity bill above Rs 50,000 per month, restaurants, and such potential outlets for the purpose of enhancing tax base. Sources disclosed that in a recent meeting Lahore BTB Department has devised a comprehensive strategy to bring the owners of the plazas in tax net who have availed LDA's commercialization scheme.They informed that BTB has attained access to the details about millions of commercial property owners who availed the LDA commercialization policy.The department will analyze the data assessing the capability of the potential taxpayers, they added. On the other hand, however, the BTB Department has very limited infrastructure and men power which could be served as one of the impediments in the compliance of the issued notices and other related jobs.The department has been covering the whole city with only eight officials including two officers and lower staff including stenographer, peon and others. —CT Report
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— Exclusive Customs Today photo
FPCCI Office turns battlefield among VPs
He said that after the announcement of long march by Pakistan Tehreek Insaf (PTI), the local stock exchange witnessed declining trend in the current week, which had a negative impact on the economy. He said that FBR has collected Rs 138 billion by July 31, 2014 which is higher than the tax collected in the same period of last year. “The target for the previous month was Rs 137 billion, therefore FBR has surpassed the target by realizing one billion rupees more by
collecting Rs 138 billion despite of long Eid holidays that reduced tax collection,” he added. He said that FBR has committed to broadening the tax net for strengthening the national economy to enhance tax to GDP ratio in the country in line with the policy of the government. He expressed his hope that the business community would take advantage of facilities extended by the government on Piling their tax returns.
Ambitious targets: KPRA collection increased by 300pc PESHAWAR
NAdER KHAN
www.customstoday.com he Khyber Pakhtunkhwa Revenue Authority (KPRA) is committed to executing the provincial government directives for broaden the base of sales tax on services in the province as the authority has already registered a 300 percent increase in the collection of Sales Tax on service in the last financial year. It is to be noted that the KPRA has been established after the passage of 18th Constitutional Amendment which devolved the
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power to the provincial governments to collect sales tax on services. The official sources said that the KPRA managed to increase the revenue collection to Rs8 billion last year, showing an exponential increase in the collection of such taxes. The province had reportedly received Rs2.5 billion under sales tax on services during the year ended June 30, 2013 and now through its own efforts, it has able to increase it by 300 percent. The sources said the department had seven groups of services provider in the second schedule of Finance Act 2013 but now another 38 services had been added to the tax net. Prominent services added to the tax net this year
include different sections of services sector such as security companies, shipping and freight, manpower recruitment and supply services, construction, advertising agents, property and real estate agents, automobile, franchise services, manufacturing and processing on toll bases, contract execution, architects and planners, consultants, port operations, mining of minerals, exploration of oil and gas related services, event management-related services, cosmetic and plastic surgery, sale of space for advertisement services, TV, radio and production house services, and services rendered by clubs and broadcasting services.
According to the sources, most important aspect of the tax policy of the province is an effort to rationalize the tax rate and bring into the net the services ordinarily not directly related to the ordinary citizens of the province. A new beginning has been made by reducing the tax rate for some of the services without any input adjustment. This will reduce the inflow of duplicate or incorrect claims by the services for input adjustment and refunds against the tax payable on the services provided by the registered persons. Previously, only a few groups of services like finance, telecom, courier and different kinds of agents were subjected to sales tax in the province.
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NATIONAL 03
AuguST 19 - AuguST 25, 2014
19 State Owned Enterprises earn Rs 246b profit: Finance Ministry
ISLAMABAD: Out of 32 state owned enterprises on the list of privatisation, 19 of them have earned nearly Rs 246 billion profit during the previous financial year. The Federal Finance Ministry’s documents available with ‘Customs Today’ reveal that these enterprises have been showing a steady increase in the volume of their profit for the last five years -- 2009-2013. It is important to mention here that the current and previous governments had been willing to privatise these enterprises under a privatisation policy as the CCI had approved a broad-based privatisation plan.
SialkotCustomsreels underworkloadas32 postslyingvacant SIALKOT
ZAFAR MALIK
www.customstoday.com s many as 32 different posts have been lying vacant at Model Customs Collectorate Sialkot since long, putting heavy workload on the existing staff and affecting their efficiency. According to official sources, there are 11 sanctioned posts of Appraising Officers in BPS 16, out of which eight posts have been lying vacant since long; three seats of inspectors out of total 36 seats while a post of examiner have been lying vacant at MCC Sialkot. Similarly a post of Principal Appraiser and four posts of Deputy Superintendents have also been lying vacant at MCC Sialkot. Besides each post of superintendent and steno typist, four posts of head clerk, five posts of sepoy and one each post of assistant private secretary and driver have been lying vacant at MCC Sialkot. There are 17 posts of LC clerks against which 21 LD clerks have been deputed at the collectorate while eight superintendents are deputed at MCC Sialkot against five sanctioned posts. Sialkot based exporters, importers, customs and cargo clearing agents and freight forwarders have urged the Federal Board of Revenue (FBR) to ensure early recruitment against these vacant posts to improve working of the MCC Sialkot. They stressed that the existing strength of officials and officers were suffering heavy workload and the appointment on these posts would not only ease their burden but would also build capacity of the staff and improve their efficiency.
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Multan Customs captures industrial base oil worth Rs20m Industrial raw material import increases through Multan Dry Port: Ali Malik MuLTAN
IMRAN ALI KHAN
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he Customs Intelligence and Investigation Multan claimed to have captured huge quantity of Industrial base oil worth approximately Rs20 million. On a tip-off, the Custom I&I carried out an operation against illegal smuggling of industrial oil near Chowk Maitla and seized a huge quantity of oil loaded in a container, weighing approximately 18 tonnes. The operation was led by Customs Intelligence and Investigation Additional Director Nisar Ahmad along with Investigation OfPicer Saleem Afzal and Constables ZulPiqar and Ramzan. According to preliminary investigation, the oil was smuggled from Quetta by a company namely Frontier Enterprise. A truck, bearing registration no TKA-088 transported the container containing iron drums Pilled with industrial base oil and was brought from industrial consumption in Punjab. Four different samples of oil have been taken from the drums and sent to Hussain Ebarahim Jamal Research Institute of Chemistry for examination. Additional Director Nisar Ahmad told Customs Today that it was for the Pirst time that the Customs had seized industrial base oil, used in industrial machinery in such a huge quantity. He said that the base oil was being carried in 125 drums and the importers failed to produce any obvious evidence of goods declara-
tion or import. Meanwhile, Multan Dry Port Deputy Collector Muhammad Ali Malik said that the port authorities have been trying to facilitate the importers with its best available resources to clear the consignments on same day. He said that the industrial raw material import has also been increasing day by day through port due to early clearance of consignment. Multan Dry port has also collected revenue of Rs169.928 million during the month of July, which includes Rs168.158 million collected through import duty on goods, Rs0.167 million regulatory duties, Rs0.320 million warehouse surcharges and Rs1.284 million collected through other means. Moreover, total sale tax on import collected by the port authorities has been Rs1630 .793 million during July 2014. The total import value becomes Rs9383.082 million which
also includes additional sales tax of Rs0.500 million, Federal excise duty on import Rs17.374 million, special excise duty on import Rs1.00 million making a total excise duty collection of Rs18.374 million. However, total collected import value also includes different taxes like advance income tax of Rs33.542 million , petroleum levy Rs887.319 million and tax on oil Rs0.054 million. Meanwhile, Multan Customs Intelligence and Investigation has seized 100 bags of plastic dana near Khanewal road Multan on absence of import documents. As per details, Customs Intelligence and investigation detained 100 bags of plastic dana on illegal import during a raid. The plastic dana was loaded from Ghala Mandi on a carrier and it was going to a factory for manufacturing of plastic goods. Customs Intelligence and Investigation inspector HaPiz Muhammad
Younas has seized a Mazda which was loaded with 100 bags of imported plastic dana. The market value of detained plastic bags was estimated Rs6000 per bag making a total value of Rs600,000 for all bags. Talking to Customs Today, Customs Intelligence and Investigation Inspector Muhammad Younas said that the bags of plastic dana has been detained on the absence of evidence of legal import after paying due duty. He said if the culprits have produced import documents, the bags will be released. Further investigations into the matter of alleged plastic dana smuggling were under process. Meanwhile, the Customs Intelligence and Investigation Multan seized a truck loaded with imported used tyres worth Rs1 million and imported Iranian bed sheets worth Rs1 million in two separate occurrences.
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NATIONAL
AuguST 19 - AuguST 25, 2014
FBR seizes contrabands worth Rs15734m in last 3years
ISLAMABAD: The Federal Board of Revenue (FBR) has confiscated smuggled items worth Rs 15734 million during last three years (2010-2013) in anti smuggling operations in different areas. The FBR has also arrested a total 639 smugglers for their alleged involvement in cases of smuggling during last three years. Sources told Customs Today that FBR had been carrying out anti smuggling operations during last three years and successfully confiscated smuggled items worth Rs. 15734 millions.
Principal appraisers, appraisers likely to show up to FIA KARACHI
CuSTOMS TOdAy REpORT www.customstoday.com
even to eight principal appraisers and appraisers of group-II of Model Customs Collectorate (MCC) Appraisement-West are likely to show up in Islamabad to explain their position to the Federal Investigation Agency (FIA) in the clearance of consignments of pharmaceutical raw-material case. The reliable sources in FBR confirmed to Customs Today that the principal appraisers and appraisers were likely to go to Islamabad in the next 72 hours to explain their stance in show cause notices issued to them by the Federal Investigation Agency (FIA). It is to be recalled that the FIA has issued notices to 76 customs officials, allegedly involved in the clearance of consignments of pharmaceutical rawmaterial illegally, without getting permission from the officers of the Federal Drug Authority (FDA) which is mandatory under Rule 15 of the Drug Imports and Export Rules 1976. It is to be noted that the Pakistan Customs through the FBR has already taken up the matter with the Ministry of Commerce. The sources expressed the hope that intervention by the Ministry of Commerce may help to dilute and resolve the case. However; Pakistan Customs allows its officials to fulfil all the legal formalities.
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gujranwala Excise collects Rs1b in 7 years
M/s Reliable Associates moves SHC against Customs FIR
Hike in shipping charges: Rice exporters want govt to intervene
KARACHI
CuSTOMS TOdAy REpORT www.customstoday.com
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he importer M/s Reliable Associates has moved the court against the FIR lodged by the Appraising Intelligence Branch (AIB) of Model Customs Collectorate (MCC) of Appraisement-West in its alleged involvement in fraudulent clearance of plastic molding materials by availing the benePit of zero rating Sales Tax under SRO670(I)/2013. According to the sources, the importer M/s Reliable Enterprises challenged the FIR in Sindh High Court (SHC) Piled against it by the AIB of MCC-Appraisement (West) and demanded the Nazir of SHC to take action against the Customs’ ofPicials/ofPicers involved in the said matter. As per the details, the Appraising Intelligence Branch (AIB) of the Model Customs Collectorate (MCC) of Appraisement (West) in the month of June registered an FIR against the importers M/s Reliable Associates, M/s Vital Trade International and M/s Shahab Traders in their alleged involvement in fraudulent clearance of plastic molding materials by availing the benePit of zero rating Sales Tax under SRO 670(I)/2013. Later, a preliminary probe was initiated by the MCC-Appraisement (West) in which it was found that the manufacturing premises of M/s Reliable Associates declared at Ground Floor, Plot No DP-45, Sector 12-D,
Collector Appraisement west M Saleem North Industrial Area was not physically existed and the electricity connection was also disconnected. The petitioner in its Constitutional Petition adopted the stance that the SRO 670(I)/2013 doesn’t not fall under jurisdiction of Pakistan Customs, as the Inland Revenue Services was authorized to deal with the Sales Tax matters under SRO670(I)/2013. It may be mentioned here that the MCC-Appraisement (East) and InputOutput Co-efPicient Organization (IOCO) have already conPirmed the authenticity of the manufacturing unit of M/s Reliable Associates. Meanwhile, the Post Release Veri-
ice exporters have shown concerns over what they called“unwarranted” increase in shipping charges by different shipping companies. As per details, the rice exporters have expressed great concern over the sudden and“unilateral”increase in the shipping charges for the export consignments of rice. They feared that the hike in shipping charges would upset the rice export in the current year as rice exporters had already secured huge orders from different countries. They were of the view that the sudden increase in shipping charges would reduce turnover of the rice grower in the country. Pakistani rice is unique in its quality but increase in shipping charges will add to its price, making it difficult for the exporters to secure new orders and compete with regional rivals in the international market. Exporters said that this decision will help Indian exporters to take more export orders and will definitely hurt Pakistani rice export as rice export is already facing severe issues due to the current political instability of the country. On the other hand, shipping companies attributed the increase in the charges to increase in the dollar price over the past few days. According to Rice Exporter Association of Pakistan, there are fixed shipping charges in Pakistan which can be changed at anytime and therefore the exporters have serious reservations over the hike in shipping charges. The exports want more facility from the government to compete their regional and international rivals globally. Rice Exporters Association demanded the government to force the shipping lines to withdraw the increase in the shipping charges.They demanded that government should interfere in the issue of price adjustment of rice export. —CT Report
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PRV Section of MCC Appraisement-West recovers Rs11.84m
— Exclusive Customs Today photo
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Pication (PRV) Section of Model Customs Collectorate (MCC) of Appraisement-West has recovered Rs 11.84 million during the month of July from different importers in violation of valuation rulings, concessionary SROs and classiPication of Pakistan Customs Tariff (PCT). According to details, the PRV Section has recovered an amount of Rs 6.01 million through GD No 166797, recovered an amount of Rs 0.74 million from GD No 50336; recovered an amount of Rs 0.31 million from GD No 10919. The PRV Section has also recovered an amount of Rs 83,374 from GD No 6838; recovered an amount of Rs 204,747 from GD No 17138; recovered an amount of Rs 612,729 from GD No 4282. It has also recovered a sum of Rs 99,049 from GD No 162337, recovered an amount of Rs 771,766 from GD No 88103, and recovered an amount of Rs 815,848 from GD No 128052. Moreover, the PRV Section has also recovered an amount of Rs 532,448 from GD No 156576, recovered an amount of Rs 545,188 from GD No13100 and recovered an amount of Rs 182,828 from GD No58023. The PRV Section of MCC-Appraisement -West has recovered an amount of Rs 241,885 from GD No 11841, recovered an amount of Rs 382,762 from GD No20230 and recovered an amount of Rs 294,605. The Collector MCC-Appraisement-West Muhammad Saleem emphasized on the speedy recovery of the evaded tax worth million of rupees and asked the ofPicers of the Collectorate to continue their efforts in this regard.
SIALKOT
CuSTOMS TOdAy REpORT www.customstoday.com
he Excise & Taxation department has collected Rs1 billion in categories of registration and lifetime token tax fee on motorcycles as 1.45 million motorcycles worth of Rs20.5 billion were sold during last seven years in gujranwala region. According to the excise officials, the major reason behind the growing number of purchase of motorcycles was unaffordable fares of public transport and rickshaws, which forced the commuters to buy their own conveyance instead of travelling in public transport. The Punjab government had computerized all the official record of motorcycles’registration and token tax to make sure the surveillance over motorcycles sale and to end illegal trading.
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IslamabadDryPortbossestowritetoFBRforforensiclab ISLAMABAD
CuSTOMS TOdAy REpORT www.customstoday.com
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slamabad Dry Port Customs Deputy Collector Miss Aysha and Additional Collector Yawar Nawaz have decided to write to the Federal Board of Revenue (FBR) for the establishment of a forensic lab at port. As per details, the management of Islamabad dry port has decided to have a forensic lab as fabric importers have been facing difPiculties in lab testing. Dry port ofPicials will decide duty on fabric after lab testing so administration has decided to write a letter to FBR for a lab at the port for quick tests of imported fabric samples. Now, the management sends samples to Lahore for testing which take three days, causing loss of
time and money to importers. Sources told Customs Today that port observed decline in fabric containers movement at the port due to absence of lab and importers from twin cities prefer to import their fabric consignments through Peshawar. "Traders also have relaxed checking at Peshawar because duty decision was made on experience rather lab results, resulting in revenue loss" sources added. Meanwhile, Islamabad Dry Port has collected Rs 166 million revenue in July which was double than the same period of last Piscal year. Sources from port authority told the Customs Today that Islamabad Dry Port had collected revenue of Rs 70 million during July, 2013; however, this year in July revenue authorities of port managed to collect double than previous year even prolong Eid holidays affected the collection. "Islamabad
The dry port management sends samples to Lahore for testing which take three days
is not a commercial city so trade activities were very limited at Islamabad Dry Port in contrast to other dry ports but despite that port authorities collected double revenue in July than previous month because of disciplinary and administrative steps by port authorities" source added. He said that Customs Deputy Collecter Miss Aysha and Additional Collector Yawar Nawz have clear instructions to customs ofPicials to check containers thoroughly while examination. Customs Additional Collector Yawar Nawaz told Customs Today that he himself examine whole process of clearance at port and instructed to ofPicials to not disturb importers deliberately. "We are trying our best to facilitate the importers and to create an environment of coordination between administration and importers so issues could be addressed under customs laws" he added.
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NATIONAL 05
AuguST 19 - AuguST 25, 2014
Quetta Customs collects Rs 261.37m
KARACHI: The MCC of Quetta has collected an amount of Rs261.37million in share of CD, Sales Tax, FED and WHT in the month of July 2014. According to details, the Collectorate collected an amount of Rs33.77 million in share of CD in first month of fiscal year2014-15 with decrease of 32per cent in comparison with July 2013. The Collectorate collected an amount of Rs 186.74 million in share of Sales Tax in the month of July 2014 with an increase of 13 per cent as compared with the revenue collection in July 2013.
Assests declaring: FBR issues list of 35 customs, IR officers ISLAMABAD
MuHAMMAd FAIZAN www.customstoday.com
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ANF recovers 5kg heroin, arrests 3 peddlers nti-Narcotics Force (ANF) recovered five kg of heroin and arrested three drug peddlers in Rawalpindi and Lahore. According to details, ANF Lahore intercepted a parcel at Fedex Office destined for Canada and recovered 420 gram heroin concealed in bed sheets.The parcel was booked from DHA Phase-III Lahore by an accused Sajid Mehmood which has to be received by Sadiq Ali at BurnabyVancouver, Canada. ANF Lahore also seized a parcel from DHL courier service, gulberg-II Lahore and recovered 390 gram heroin concealed in a carton containing garments.The parcel has to be received by Sheraz Shah at Kortvoort Amsterdam, Netherland. After initial investigation, two accused Muhammad umar Farooq and Muhammad Azeem, both residents of Lahore were arrested. Meanwhile, the force conducted three raids at Courier Service Companies at Rawalpindi, recovering five kg heroin destined for abroad. ANF Rawalpindi intercepted a parcel at APX courier service, Rawalpindi and recovered 4 kg heroin from a consignment containing 246 cones of thread.The consignment was booked by a person Muhammad Azeem resident of Lahore and destined for Canada. Cases have been registered in ANF Police Stations and further investigations were under process. Meanwhile, ANF Peshawar arrested five persons including three women smugglers in separate crackdowns against narcotics in various parts of Peshawar and Khyber Pakhtunkhwa and recovered 2,600 grams opium. According to spokesman Anti Narcotics Force Peshawar, the first raid was carried out in Haji Camp area of Peshawar where a person identified as Muhammad Nadeem Shahid s/o Muhammad Ilyas resident of Lahore was arrested and 600 gram opium recovered from his possession. In a separate raid, Anti Narcotics Force in a routine checking at Rashakai Interchange, Mardan arrested two accused namely Wasih-ur-Rehman son of Said Roz Khan and Wazir Saeed. —CT Report
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he FBR has issued the list of 35 ofPicers of BPS 17 to 19 of who has not declared their assets since 2011 and decided to cancel their allowance. As per details, these 35 ofPicers includes two Inland revenue ofPicers of BPS 19, ten ofPicers of BPS 18, three ofPicers of grade 17 and 20 ofPicers of BPS 20 of Pakistan Customs. As per the list of FBR, two ofPicers of Inland Revenue of BPS 19 were RTO-3 Karachi Pervez Ismail Memon and Multan RTO Additional Commissioner Asif Rasool. The ofPicers of BPS 18 who have not declared their assets includes Karachi Internal Audit Deputy Director Abdul Hameed Abro, Hyderabad RTO Deputy Commissioner Dr Sajjid Hussain Arain, Lahore RTO Deputy Commissioner Noreen Ashraf, Karachi RTO Deputy Commissioner Tasawar Iqbal, Rawalpindi RTO Deputy Commissioner Abdul Razzaq Khan, Deputy Director Syed Ali Irfan Rizvi, Lahore RTO Deputy Commissioner Dr Amber Sohail, Deputy Director Rana Khawar Ahmad, Deputy Director Firasat Ali Shah and Faisalabad RTO Deputy Commissioner Muhammad Zia-ul-Haq. The Inland ofPicers of grade 17 who will not receive allowance included Lahore RTO Assistant Commissioner Abdul Basit, Multan RTO Assistant Commissioner Sayeeda Nadeem and Quetta RTO Assistant Commissioner Shamas Ullah Khan Panizai.
The 20 ofPicers of grade 18 from Pakistan Customs who have not declared their assets since last three years include FBR second secretary Dr Ghulam Mustafa, Karachi MCC Appraisement-West Deputy Collector Muhammad Faisal Khan, Karachi MCC Appraisement-West Deputy Collector Yousaf Ali Khan Mugsi, Quetta MCC Appraisement Deputy Collector Amir Nawaz Khan, Gilgat MCC Appraisement Deputy Collector Tahir Habib Cheema, FBR Islamabad Second Secretary Syed Faisal Saeed Bukhari, Peshawar MCC Deputy Collector Abaidullah, Quetta Directorate of
Transit Trade Assistant Director Abdul Rasheed, Islamabad MCC Deputy Collector Wajiha Jamal, Karachi MCC Preventive Assistant Director Abdul Hafeez Khan, Karachi MCC Preventive Assistant Collector Muhammad Asad Ali Khan, Karachi Port Muhammad Bin Qasim MCC Assistant Collector Fazal Shakoor, Lahore Customs Valuation Aniqa Afzal, Karachi Port Muhammad Bin Qasim MCC Assistant Collector Muhammad Rehan Akram, Karachi MCC Preventive Assistant Collector Jahenzaib Abbasi, Karachi Customs valuation Assistant Collector Muhammad Shahzad Khan, Quetta
Directorate of Transit Trade Assistant Director Syed Talha Suleman, Quetta MCC Assistant Collector Shoiab Anwar Hashmi, Karachi MCC Appraisement-West Assistant Collector Muhammad Arslan Majeed Rana and Karachi MCC Preventive Assistant Collector Farhat H. Khan. Sources told Customs Today that Member Administration also suggested to FBR that if even after the deduction of allowance these ofPicers failed to declare their assets FBR should present them charge sheet which will endanger their future promotion.
Customs moves to clip wings of Shaheen airline From page 01 “The non co-operative attitude of M/s Shaheen Air International is creating impediments in the finalization of investigation and efforts being made to collect the documents and examine the accused persons involved in the case”, it added. The sources further informed that the investigation carried out so far revealed that M/s Shaheen Air International entered into a deal with Siddiq Awan for the auction of the scrap of 5 aircrafts @Rs1550000, the final approval of which was given by accused Ehsan Khalid Sehbai as Chairman Shaheen Air International. It was further surfaced that prior to the grant of final approval by accused Ehsan Khalid Sehbai, it was also approved by accused Faisal Rafique, deputy managing director (Airline Operations).
In furtherance of the conspiracy, M/s Shaheen Air International sought permission from Civil Aviation Authority (CAA), JIAP and Airport Security Force (ASF) to allow nine persons to carry out the scraping exercise and removal of the scrap from the airport without any permission from the Customs authorities thereby violating the provisions of the Customs Act aimed at evading duty/taxes leviable thereon. During investigation, Authorities also came to know that M/s Shaheen Air International has disposed of an aircraft bearing registration/tail No. AP-BHG in 2013. In this regard, Group Captain (Retd) Syed Yousaf Chief/Director (Procurement and Logistics) has been examined and relevant documents have been obtained which proves the involvement of M/s Shaheen Air International in the commission of offence. The documentary evidence
gathered so far proves that Syed Yousaf was the main person who maneuvered all the illegalities committed by M/s Shaheen Air International in collusion with others. It was also known during the course of investigation that M/s Shaheen Air International had also auctioned other aircrafts to scrap dealer M/s Altaf Brother and Basharat without prior permission of Customs authorities. This aspect is under further scrutiny. The role of Customs staff posted in Audit Section, Import, JIAP was scrutinized and the statements of the concerned officer and UDC were recorded according to which it transpired that no regular audit had been conducted either by the staff of Internal Audit Team, Post Clearance Audit (PCA) and by the staff of Audit Section. The role of Customs staff is being further probed for
fixing of the responsibility. In view of the facts and circumstances, the Customs authorities reached at the point that the accused persons namely Ehsan Ali Sehbai, Chairman Shaheen Air International, Syed Yousaf (Chief/Director Procurement & Logistics), Faisal Rafiq, DMD (Airlines Operations), S M Anwar, Director Legal Services M/s Shaheen Air International, Abriaz Ali Khan, Assistant Legal Advisor, M/s Shaheen International, Altaf and Basharat, scrap dealers thus committed an offence under Section 2(s), 32(2) & 79 of the Customs Act, 1969 punishable under clauses 8,14 &47 of Section 156(1)ibid read with the Sales Tax Act, 1990, Income Tax Ordinance, 2001 and Prevention of smuggling Act, 1977. The Collectorate of Customs Adjudication-I has summoned the parties on 26 August-2014 for hearing.
06
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SPECIALREPORT
AuguST 19 - AuguST 25, 2014
The Ministry wants the government to take up the issue with Afghan government to increase the trade volume with CARs to $15 billion ISLAMABAD
MuHAMMAd ARSHAd www.customstoday.com
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he Federal Minister of Commerce and Textile Industry Engineer Khurram Dastgir has said that government will consider suggestions from business community while devising economic policies. He said that increase in export volume was part of Prime Minister's vision 2025, for which the Ministry of Commerce had been working closely with relevant government institutions. Federal Minister of Commerce expressed these views during a meeting with Federation of Pakistan Chambers of Commerce and Industry delegation lead by Federation President Usman Zakeria. During the meeting, the Federal Minister said that government and business community has been on the same page regarding increase in exports volume. "We are devising new policies for enhancing our exports which will include suggestions from traders and experts of government and private sector," he added. He said that the ministry has been working on branding and marketing of Pakistani products abroad which will boost economic growth of country. He urged the business community to step
we are devising new policies for enhancing our exports which will include suggestions from traders and experts of government and private sector
forward to invest more in export oriented industry adding that the government has been exploring new trade routes for Pakistani exports. Meanwhile, The Ministry of Commerce is intended to press the government to hold talks with Afghanistan to resolve issues barring Pakistani exporters from direct exports to Central Asian Republics (CARs). Currently Pakistani exporters have to export their goods to Afghan importers who export these onwards to CARs. The Ministry wants the government to take up the issue with Afghan government to increase the trade volume with CARs to $15 billion. Reliable sources told Customs Today that the Ministry of Commerce wanted the government should hold dialogue with Afghan government to eliminate all the impediments hampering direct export of Pakistani products to CARs. “Hopefully the Commerce Minister will take up the issue with the Prime Minister once the prevailing political impasse is resolved” expressed an ofPicial on condition of anonymity. “Once issues are resolved and Pakistani exporters are provided with facility of direct exports to CARs, the volume of Pakistani exports to these countries will cross the Pigure of $15 billion” the source said. Initially, the source added that Commerce Minister Khurram Dastgir had constituted an intra-departmental committee comprising senior ofPicials of the Commerce Ministry, representatives of the Federal Board of Revenue (FBR), Pakistan Customs (PC) and representatives of the business community from provinces adjacent to Afghanistan to resolve their internal issues which hindered ex-
ports to CAC via Afghanistan. The source informed that the committee would examine the process of Pakistan’s trade with Afghanistan and Central Asia and suggest proposals to remove all impediments hindering growth of regional trade. The committee will bring all stakeholders to gather for unanimous decisions in this regard. It is to be noted that Pakistan had taken a lead in forming the ECO comprising ten regional states by including the Central Asian States to the group of Iran, Turkey and Pakistan following their liberation from Russia. However, the trade volume could not be increased in accordance with the potential of these states. The trade between Pakistan and Central Asian states declined from a total of $81.19 million in 1997 to just $20.16 million in 2003, and with slight increase in (2008-009) but still a fraction of its true potential, is only $45.3 million. This decline was result of unavailability of direct land routes and unabated unrest and violence in Afghanistan. There are enormous opportunities for Pakistan to establish strong trade and economic links with CACs as their fast growing market offers tremendous potential for consumer goods like textiles and light engineering products. Some estimates even suggested that the region had a potential market worth $80 billion and if Pakistan secures even 5 percent of this market, it can earn up to $4 billion a year in garments, agriculture auto parts, food products and other sectors. Afghanistan’s total trade with the Central Asian Republics amounted to $1,244 million and Afghanistan’s trade with Pakistan reached to $1.9 billion in the Piscal year 2009-10.
AuguST 19 - AuguST 25, 2014
SPECIALREPORT 07
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08 EDITORIAL
AuguST 19 - AuguST 25, 2014
Founder & Chairman Zulfiqar Ali Editor Rahil yasin editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk +92-308-2106195 www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, gulberg, Lahore
EdITORIAL
Marches and lingering political instability
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The lingering political instability in the wake of marches of PTI and PAT will have far reaching negative impact for overall national economy of the country, which has just started picking up recovery after witnessing long sluggish and low growth in last five years. Without involving into the debate of merits and demerits of this ongoing political instability, there is need to analyze that it will have negative impact with reference to tax collection, exports earnings, economic activities and industrial production and foreign direct investments. The nosedive of stock market in single day inflicted losses of over Rs 300 billion. The political stability is pre-requisite for achieving macroeconomic stability. In the past, Pakistan had witnessed political instability several times and policy reversals time and again and it was proved a fact that it resulted into boom-bust cycles in terms of gDP growth. The gDP growth grew more in the range of 5 percent on average during those tenures when Pakistan received foreign aids generously and it slashed down when foreign inflows plumped down in the history of the country. In last 14 months, Pakistan has progressed on the recovery path after signing deal with the IMF for getting bailout package of $6.67 billion under Extended Fund Facility (EFF). In the last fiscal year, the gDP grew at the range of 4.1 percent compared to average 2.5 percent in last five years and inflation also brought down into the single digit. On external front, the country’s foreign currency reserves went up from $7 billion to over $14 billion in last one year despite this fact that Pakistan had paid more to the tune of $3.2 billion to the IMF and got less in the range of $2.2 billion by obtaining four instalments. Although, the current account deficit surged to $2.9 billion in last fiscal year with the argument that the import of machinery increased as the economic activities were picking up. It is still worrisome indicator that the exports were not increasing at the desired pace which needs to be analyzed and come up with viable short and long term solutions. On revenue collection side, the FBR is going to achieve highly ambitious tax collection target of Rs 2810 billion. In case of ten days disruptions and blockade of roads is going to result huge revenue loss of Rs 80 billion to Rs 100 billion. It is high time for both ruling party and opposition led by PTI and PAT to resolve this crisis in order to avoid massive losses incurring on the economy of Pakistan.
Revenuemobilizationrequireseffectiveenforcement ISLAMABAD
SM HAIdER
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akistan Vision 2025 has envisaged target to jack up tax to GDP ratio from less than 9 percent to 16-18 percent over the next 10 years. The revenue mobilization requires effective enforcement. According to Vision 2025, the Tax, Investment and Exports (T.I.E) nexus is essential for guaranteeing the desired level of growth in an economy. T.I.E. as a percentage of GDP has declined substantially in recent years and has thus negatively impacted growth. Tax-to-GDP ratio at 9.7% is lowest in the region, private investment has fallen by nearly half between 2006 and 07 and in 2012-13 from 15.4% to 8.7% accompanied by sharp drops in both foreign and domestic investment, and exports have
fallen from 12.5% of GDP in 2007-08 to 10.7% in 2012-13. This is how substantial erosion of the growth momentum in the recent past could be explained from the financing side. Tax, Investment and Export (TIE) are crucial for enhancing the growth potential and thus enhancing the job creating ability of the economy in the medium to long-term. Critical steps to enhance Tax, Investment and Exports are priority areas in Vision 2025. Several opportunities exist for enhancing the Tax-to-GDP ratio: (i) the implementation of a full Value Added Tax (VAT) or wholesale reductions in exemptions and concessions (eliminate SRO power), (ii) fully incorporating services into the tax net; and (iii) considerable improvement on the tax administration front, developing and implementing a comprehensive strategy to strengthen tax administration
with focus on significantly stepping-up the FBR’s enforcement activities and strengthening its legal authority plus digitalization of tax records. Investment promotion will be achieved through the simplification of regulations, better contract enforcement, liberalization of barriers to new business start-ups, simplification of legal and taxation requirements (such as a “one stop shop” for investors), strengthening anti-corruption efforts, enhancing access to credit for small and medium enterprises (SME) and focusing on financial inclusion and deepening. Efforts will be made to create proper incentive mechanisms for mobilizing savings and transmitting them into investment, harnessing the full potential of One Nation - One Vision the Pakistani Diaspora abroad by offering them potential areas of investment on the patterns of best
international practices and above all reaping benefits of investment in economic corridors. Trade diplomacy and regional trade enhancing initiatives could add substantially to Pakistan’s export-to-GDP ratio. The improvement in business climate through reforms will also enhance export potential. Tax-to-GDP ratio will be increased to 16-18% by 2025 in line with comparable countries (India 16.8%, Turkey 19.7% and Thailand 18.8% in 2012) by broadening the tax base and reforming the taxation system. Domestic savings to GDP ratio will be improved to around 1821% of GDP through the development of financial markets (banking, insurance and capital markets) and by creating incentives to save (India, 30.9% of GDP, Thailand 29.8%). An export led growth strategy will help achieve $150 Billion exports by 2025.
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NATIONAL 09
AuguST 19 - AuguST 25, 2014
Customs collects Rs 300.11m in gwadar
KARACHI: The Model Customs Collectorate (MCC) of Gwadar has collected an amount of Rs 300.11 million in share of customs duty (CD), sales tax, federal excise duty (FED) and withholding tax (WHT) in the month of July-2014. According to the statistics, the Collectorate of Gwadar has collected an amount of Rs 58.87 million in share of CD in the first month of fiscal year 2014-15 with an increase of 363 per cent as compared to July 2013.
M/s Ziaul Haq & Sons served show-cause notice he Customs Collectorate Additional Collector-II (Adjudication) has served importer M/s Ziaul Haq & Sons with a show-cause notice for mis-declaration of imported consignments. According to details, importer M/s Ziaul Haq cleared the consignments of cold rolled coil of prime quality, having PCT 7209.1590, weighting 3,784-kg and Tin plate sheet, having PCT 7210.1290 and 11,000-kg weightage under Section 79(1) of the Customs Act, 1969. However, the examination report revealed that the importer M/s Zia-ul-Haq had misdeclared quality of the imported goods which was found of secondary instead of prime quality. The report said that the importer also disdeclared weight of the cold rolled steel sheet which was 10,400-kg instead of 3,784-kg and Tin plate sheet 3,8365-kg of secondary quality instead of 11,000-kg declared as prime. As per the examination report, the importer involved in mis-declaration and attempted to deprive the national exchequer of revenue amounting Rs1,009,700 in the heads of Customs Duty, SalesTax and IncomeTax. The importer attempted to evade the duty/taxes of Rs550,451 in share of Customs Duty, Rs333,153 in share of Sales Tax and Rs126,107 in share of Income Tax. The actual value of offending goods was estimated to be Rs4,033,206. Taking the facts into account, the Customs Collectorate Additional CollectorII of (Adjudication) has served a show-cause notice on the iumporter, declaring that M/s Ziaul Haq & Sons had violated Sections 32(1), 32(2), 79(1) under clause 14 and 45 of the Section 156(1) of Customs Act, 1969 and Section 33 under clause 11(c) of Sales Tax Act, 1990 and Section 148 of Income Tax Ordinance. —CT Report
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wRITE TO uS yOuR gRIEvANCES: Through CuSTOMS TOdAy platform HELp dESK, now you have chance to dIRECTLy write your problems to top govt. functionaries. If you have any grievances, queries, questions or suggestions, you can write in this section as it provides easiest access to you to approach Customs and Revenue authorities. wHO can write in this section? Importers & Exporters, Customs Agents, Chambers of Commerce, Trade Associations and Customs Officers TO wHOM you can write? Honourable PM, Minister/Secretary for Finance & Revenue, Minister/Secretary for Ports and Shipping, FBR Chairman, Member Customs and Chairperson Senate/National Assembly Standing Committee on Finance & Revenue. Send your letters at: newsdesk@customstoday.com.pk
Iranian pOL products smuggling into pakistan continues, FBR tells Senate ISLAMABAD
CuSTOMS TOdAy REpORT www.customstoday.com
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espite hectic efforts and introduction different strategies, the smuggling of petroleum, oil and lubricants (POL) products into Pakistan through Iran and Afghanistan borders is continued unabated. According to the FBR statement submitted to the upper house of the parliament in response to a question, the board claimed that it was very sensitive to smuggling of the Iranian POL products. “This smuggling takes place through nonspeciPic routes across the borders and uninhabited beaches on the sea, where only Coast Guards and Frontier Corps (FC) have their presence with matching human resource and Pirepower to counter the smugglers in these areas of Balochistan,” it said. According to the FBR, the average monthly quantity and volume of POL products smuggled from Iran and duly conPiscated by Customs authorities in the current calendar year is 131,238 litres. However, it claimed that the FBR has formed a joint strategy and its Pield formations have enhanced their antismuggling operations. “Joint antismuggling teams have been constituted, which are working under the control of FBR’s Directorate General of Intelligence and Investigation, to interdict the menace of smuggling of such products. “Coordination has been ensured with the Coast Guards, the FC personnel and other agencies operating on smuggling routes from Iran, in addition to ofPicial correspondence on
the matter to help check smuggling of petroleum products,” it said. The FBR said it has formed three special anti-smuggling squads and one check post to intercept and seize smuggled POL products on the inter-provincial borders as well as on highways. It claimed it has also covered roads and unfrequented areas for any possible inPiltration. “The FBR is also carrying out joint checking with other law enforcement agencies, i.e., rangers. Recently, joint checking has been carried with Pakistan’s largest oil marketing company, Pakistan State Oil (PSO), to intercept tankers with
FBR paying increased attention to intelligence gathering services and effective patrolling of vulnerable areas
smuggled high speed diesel,” it stated. According to the reply, the FBR is also paying increased attention to intelligence-gathering services and effective patrolling of vulnerable areas. It said targeted movement on tip offs and strict vigilance is being maintained, adding that board is making all best efforts to seize the smuggled POL and petroleum products. “In the wake of recently enhanced anti-smuggling campaign against such smuggled POL products, the very phenomenon has been registered to decrease over the months,” the FBR claimed.
Tax measures and role of LCCI To,
FBR Chairman, Tariq Bajwa, Islamabad Dear Sir,
LCCI always protects the rights of business community of Pakistan and raises its voice against all the policies that hurt the business activities. Simultaneously, it is our national duty to support the government for its efforts to broaden the tax net. At this juncture, the government is introducing new provisions in the existing taxation system to increase the tax base. In this year’s federal budget, it has been decided to bring the unregistered business sectors of Pakistan into tax net. The Federal Board of Revenue (FBR) has issued SRO 608(I)/2014 and initiated a survey of all markets in this regard. Although, LCCI has endorsed business com-
munity's voice to withdraw this SRO immediately and we strongly propose to consult the stakeholders before finalizing such policies. Therefore, to support the business community and government, we suggest measures that would not only help in broadening the tax net but would also help to increase the revenue collection in the country. You are therefore requested to please provide your valuable suggestions related to this matter and share the same with us through email at vp@lcci.org.pk. LCCI would keep on serving its venerated members in an efficient and efficacious manner in the years to come as well. We also urge the FBR Chairman to take the chambers and business community into confidence before making tax related policies. With best regards, Kashif Anwar LCCI, VP Lahore
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10 PICTORIAL
AuguST 19 - AuguST 25, 2014
Hyderabad Customs collects Rs 382.51m
KARACHI: The Model Customs of Collectorate (MCC) Hyderabad has collected an amount of Rs 382.51million in the month of July-2014 in share of Customs Duty (CD), Sales Tax, Federal Excise Duty (FED) and Withholding tax. According to details, the Hyderabad Collectorate has collected an amount of Rs 64.81 million in share of Customs Duty with the decrease of 56 per cent as compared to the revenue collection for the same period during last fiscal year.
ZIARAT: Prime Minister Nawaz Sharif, Chief of Army Sta gen Raheel Sharif, Balochistan governor Mohammad Khan Achakzai and Sanaullah stand inside the re-built Ziarat residency.
ISLAMABAd: Federal Minister Dar accompanied by Minister for Information Pervaiz Rasheed and Minister for Science and Technology Zahid Hamid addressing a press conference.
Chiefcollectors,collectorsattendaghoistingceremony KARACHI
CuSTOMS TOdAy REpORT www.customstoday.com
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Plag hoisting ceremony was held on Thursday in connection with Independence Day at Customs House, Karachi. Chief Collectors Enforcement and Appraisement (South), Collector MCC-Preventive Syed Muhammad Tariq Huda, Collector MCC-Appraisement (West) Muhammad Saleem, Collector MCC-Appraisement (East) Najeeb-ur-Rehman Abbasi, additional collectors, deputy collectors and other Customs ofPicials attended the Plag hoisting ceremony. The Chief Collector Enforcement (South) Muhammad Nazim Saleem and Chief Collector Appraisement (South) Nasir Masroor Ahmed hoisted the national Plag at Customs House. On the occasion, the participants observed parade of customs guards and performance by a band of Pakistan Navy. The ceremony was organized by MCC-Preventive of Pakistan Customs.
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CARTOONSSPECIAL 11
AuguST 19 - AuguST 25, 2014
MCC preventive collects Rs7913.34m
KARACHI: The Model Customs Collectorate (MCC) of Preventive has collected a sum of Rs 7913.34 million in the month of July in share of Customs Duty (CD), sales tax, Federal Excise Duty (FED) and Withholding Tax (WHT). According to details, the MCC Preventive has collected an amount of Rs 867.58 million in share of customs duty in July with increase of 19 per cent, as it had collected a sum of Rs 727.29 million during the same period of last fiscal year.
Plan to name ex-babu as TRC chief raises eyebrows ISLAMABAD
CuSTOMS TOdAy REpORT www.customstoday.com
ax experts and legal wizards have expressed astonishment over the government proposed planned appointment of a retired bureaucrat as head of theTax Reforms Commission (TRC) and described the move as the government’s backtracking from its commitment to revisit the tax policies. As per reports, the government is considering people for the job who are experts in public finance but have no relevant experience in tax law and its application. According to reports, the names of former federal finance secretary Moeen Afzal and former State Bank of Pakistan governor Dr Ishrat Hussain as people being considered. Both men have considerable authority in their fields but lack experience in tax law. The names of both the former bureaucrat have been proposed after fruitless attempt to hand over the helm to the Federal Board of Revenue (FBR) chairman. According to analysts, despite the presence of experienced professionals like former finance minister Dr Hafiz Pasha and tax lawyer Dr Ikramul Haq, the government’s desire to grant the responsibility to a retired bureaucrat suggests insincere efforts. In his budget speech, Finance Minister Ishaq Dar announced to constitute a TRC aimed at rationalising all the taxes to run the system with transparency. Dar acknowledged the need for carrying out an indepth analysis and review of the tax policies and administration of the country. The minister had also announced that the members of the commission will comprise of public finance experts, practitioners, businessmen, tax lawyers and retired civil servants.While addressing a press conference this week, Dar said that the government would notify the commission before end of this month. Meanwhile reports added that the government has been contemplating the appointment of the Federation of Pakistan Chambers of Commerce and Industry
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chief and four provincial chamber presidents as members of the proposed commission. But none of them are experts in the field of tax and their inclusion in the current system may be a deterrent to point out deficiencies.
The heads of these business bodies are also members of the Tax Advisory Council (TAC) that the government has constituted before presentation of this year’s budget.
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12
AuguST 19 - AuguST 25, 2014
TCS smuggling hearing adjourned
ISLAMABAD: Hearing of the TCS and Smart Zone Company smuggling case has been put off again until August 21 due to unavailability of Customs Judge Muhammad Ahmad Farooqi. Former TCS CEO Saqib Hamdani and Manager Logistics Ghazanfar Gul turned up in the court. Both the accused have submitted application for confirmation of bail before arrest granted by the court. A source told Customs Today that customs authorities had prepared case after thorough investigation and are hopeful that culprits will be brought to account.
Customs examines 725 containers in 3 days at KICT Clearance of 302 containers in a day gives clear message to the terminal operators that the pakistan Customs is fully capable to clear as many containers in a day KARACHI
SOHAIL RAB KHAN www.customstoday.com
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he Pakistan Customs has examined and cleared 725 containers in just three days at Karachi International Containers Terminal (KICT) in which record 302 containers have been examined and cleared at KICT in one day. This was revealed by Usman Tariq, Assistant Collector-KICT Examination while talking to Customs Today at his ofPice. Assistant Collector apprised that record 302 containers in a day have been examined and cleared by examining staff of Pakistan Customs at KICT. Giving the statistics, Usman Tariq said that the Pakistan Customs has examined 259 containers on Sunday, 302 on Monday and 164 on Tuesday at KICT. He further said that the Pakistan Customs has accomplished this job with the workforce of only 13 examining officials, adding that only 30 containers are pending and the examination process of those containers would be completed after grounding of the containers. Commenting on the KICT operations, Us-
man Tariq said that the terminal authorities are responsible for grounding of the containers, arranging them for examination and stufPing after examination, however; the Pakistan Customs is only responsible for carrying out the examination of the containers. “The delay in grounding of the containers for examination causes major delay in releasing the containers from terminal”, he added. “Clearance of 302 containers in a day has given a clear message to the authorities concerned of terminal operators that the Pakistan Customs is fully capable to clear as many containers in a day”, he asserted. Usman Tariq further revealed that the Pakistan Customs has accepted the examination of more than 300 containers in a day as a “challenge” a n d cleared these containers on time.
Published by M. F. Riaz, Off. 91, 3rd Flr, gul Plaza, M.A. Rd., Karachi, for Customs Today and Printed at Dhoom Printing Press Masheer Mahal Building, Off: I. I. Chundrigar Road, Karachi
— Exclusive Customs Today photo