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vol 2 Issue no. 06
karachi, tue feb 25 - Mon March 3, 2014
weekly
Regd. no, Mc-1381
Price Rs. 50.00
RevIewIng capacIty tax
The capacity system was introduced in the last budget to allow the industry work freely without unnecessary interventions, says Ishaq Dar | See page 04 | ReMovIng baRRIeRS
LAHORE
M hayat
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Visa restrictions are the biggest non-tariff barriers but these barriers will be considerably brought down to improve PakIndia trade ties, says Dastgir | See page 03 | IncReaSIng pnSc ShIpS
Strength of the ships of Pakistan National Shipping Corporation would be doubled very soon, says Ports and Shipping Minister Kamran Michael | See page 02 | ISSuIng tax dIRectoRy
Non-filer MPs have been given time till Feb 28 to file their tax returns to avoid any action against them, says Bajwa | See page 05 |
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he restoration of freight train service at Mughalpura Dry Port will surely give a fresh impetus to business activities, generate employment opportunities and reduce congestion in Karachi which will lead to swift Customs clearance and assessment of export consignments. Customs Collector (Appraisement) Zahid Khokhar expressed optimism while talking exclusively with Customs Today at the sidelines of inauguration of freight train service at Mughalpura Dry Port. He drew a comparison that if there were 600 to 700 goods declarations (GDs) Niled at one place and only 40 to 50 at the other, the hassle and problems would be far more at the former place, adding that equal Niling of GDs at all dry ports of the country would enable Pakistan Customs to ensure better examination and clearance of goods consignments. “Customs belongs to the entire country and there must be equal opportunities to all dry ports,” the collector emphasised. Zahid Khokhar pointed out that restoration of freight trains services was a milestone and at least one freight train should be unloaded at the dry port on daily basis. “In the past three to four locomotives would arrive at Mughalpura Dry Port on daily basis,” the Customs Collector recalled, adding that arrival of freight trains at Mughalpura Dry Port would bring about hefty rev-
enue, generate employment and reduce congestion of containers in Karachi. Meanwhile, addressing customs agents, ofNicials and labourers at Mughalpura Dry Port, he said that Mughalpura Dry Port was the oldest port of the country and had witnessed a golden era when it would teem with business activities to the extent that there would shortage of warehouse to accommodate goods and articles. “It is very sad that today the port presents a deserted look. However, I am glad to know that freight trains have once again set foot in the dry port,” Khokhar expressed. He expressed his hope that under the new government and management, the dry port would run smoothly which would lead to reduction in per unit cost, adding that restoration of freight service at the dry port would help ensure unhindered clearance of goods, beneNiting both the businessmen and government beNittingly. Customs Collector (Appraisement) asked the dry port management to work out facelift of the port and make available all basic amenities to attract public.
Restoration of freight trains services is a milestone and at least one freight train should be unloaded at the dry port on daily basis — Exlusive Customs Today photo
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NATIONAL
FEBRUARy 25 - MARCH 03, 2014
aSf halts attempt to smuggle heroin to uk
LAHORE: Airport Security Force has arrested a passenger in possession of 1.7 kg heroin at Allama Iqbal International Airport. The passenger was on his way to London via flight from Lahore. The accused was able to pass through three search counters including those of Anti Narcotics Force, Customs and the first counter of ASF. The drugs were detected on second search counter of ASF where staff made a thorough search of his luggage and recovered heroin concealed in his computer.
Strength of pnSc ships to be doubled: kamran Michael
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KARACHI
fficial Spokesperson of the Federal Board of Revenue Shahid Hussain Asad has announced that the tax directory of all taxpayers will be issued by the end of March. Asad who is also the Member Inland Revenue Service further said that tax directory would include tax details of around 0.85 to 0.9 million people, who had filed tax returns in the tax year 2013. Talking about 100 non-tax filer lawmakers, Asad said that FBR has given them another opportunity to file income tax returns by the end of current month as done by other parliamentarians of the country. Pakistan would become the fourth country in the world to publish tax particulars of all its registered taxpayers. Sweden, Finland and Norway had issued the tax directory before Pakistan. FBR has already issued the tax directory of the lawmakers on February 15 which showed that 100 elected representatives of the country did not file their income tax returns. Sources added that information of the tax directory would include income tax information of businessmen, media persons, service providers, prominent players, artists, public/private sector employees and all other income tax return filers.There is a general objection that private and confidential information of taxpayers, who are regular income tax return filers, would be made public by FBR. —CT Report
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director I&I Mukarram stresses commitment irector Mukarram Jah Ansari has stressed upon the need of team work, professionalism, discipline, honesty and commitment to the purpose among the officials. Ansari was addressing the officials of the directorate on an event arranged by the staff in order to welcome him as he has recently been posted as Director of the Federal Board of Revenue’s Directorate General of Intelligence and Investigation (Customs). He said that Intelligence and Investigation is an important wing in Customs thus it needed full devotion and commitment to the purpose. On the occasion other officials of the directorate including Abbas Ali Babar, Salman Afzal, Kehkishan Khan, Nayyar Shafique and officials from Gujranwala range office were also present. —CT Report
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ederal Minister for Ports and Shipping Kamran Michael has said that strength of the ships of Pakistan National Shipping Corporation (PNSC) would be doubled and ministry will issue tenders for new ships soon. The minister claimed that PNSC had earned proNit of $ 1.9 billion during the last few months. He said that a policy is being formulated to introduce 75 per cent trade through shipping. Policies are being made to streamline the national institutions, he added. Michael said that present government is giving special attention to bring improvement in the port and shipping sector. He said that previous governments did not make any progress in the shipping sector. The government is taking all important measures to make speedy progress in this sector, he added. Replying to a question, he said
that Karachi Marine Academy would be given a university status. He said that government is also making plan to use PNSC ships for pilgrims. He added that this facility would reduce expenditure of pilgrims while travelling to Saudi Arabia for performing Hajj. He said, "We are focusing on the policy of trade rather than aid to boost economy of the country." The minister said that Sri Lanka had signed an agreement for trade through ships. Replying to another question about Gawadar Port, he said that government is taking necessary steps for the effective use of Gwadar Port. He added that Niber boats would be provided to Baloch Nishermen on easy installments. He said that governm e n t had al-
located Rs. 31 billion for the construction of roads from Kashghar to Gwadar. To another question he said China will establish oil reNinery in Gwadar. He hoped that Gwadar will play vital role in the progress of the country.
Goutam for liberalising regional trade to achieve prosperity MIan ShafQat Saeed www.customstoday.com
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ead of Federation of Indian Chambers of Commerce and Industry (FICCI) for Arabia and South Asia Region, Goutam Gosh said that organising a successful India Show in Pakistan was a great achievement. While talking exclusively with Customs Today, he further said that with enhanced trade ties, both Pakistan and India can achieve welfare and prosperity. For providing easy access to each other’s markets, both sides need to focus on quantity and quality of products. He said, “Trade volume among South Asian countries is hardly 5 per cent, whereas, the region is home to one-third of total world population. Other developed countries need buyers to purchase their goods but we have goods as well as buyers in our region. All we need to do is to open up markets. We have to explore more ways for furthering trade ties. And for that purpose we ought to search new markets and develop interest.” He added, “Our economies will progress more quickly if we explore regional markets and enhance trade with neighbouring countries, in-
pak, china to build int’l airport at gwadar port ll-weather allies Pakistan and China signed agreements for realising the dream of trade corridor. An agreement for building an airport at the strategic Gwadar port and extending Karakoram Highway up to Islamabad as part of efforts to realize the economic corridor project was also signed.The agreements were signed after talks between Pakistan President Mamnoon Hussain and his Chinese counterpart Xi Jinping at the ornate Great Hall of the People. Finalizing plans to build rail, road and gas pipelines in the proposed SinoPakistan Economic Corridor, the two countries signed agreements which included second phase of the extension of Karakoram Highway up to Islamabad and building of an international airport at Gwadar connecting the corridor between them.The project includes a 200 km tunnel as well.The corridor will link China’s Muslim Uygur-majority Xinjiang province with Pakistan’s Gwadar Port to provide road access to Arabian Sea and the Indian Ocean. Earlier, the joint cooperation committee (JCC) between the two countries discussed the infrastructure projects like road, rail and gas pipeline projects to be established through the corridor as well as other projects between the two countries on the sidelines of Hussain’s first visit abroad. —CT Report
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LAHORE
— Exlusive Customs Today photo
Generaltaxdirectory tobeissuedby March31:Asad
stead of looking towards other regions. We have to compete in business activities rather than arms race to improve the living standard of our own people.” He said that trade via land routes would be easier. We should make procedures pertaining to trade through land routes as feasible and favourable. While giving full credit to FICCI, LCCI, SAARC CCI and governments of Pakistan and India for making
this exhibition a success, he also admitted that Pakistani business community extended their vigorous response in this regard. He said, “Our business-tobusiness meetings remained highly productive. We are grateful to Pakistani government for facilitating Indian businessmen.” Gosh appreciated Customs Today team for launching a Nirst-ever independent newspaper of business people especially customs community.
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LAHORE 03
FEBRUARy 25 - MARCH 03, 2014
cocaine and heroin caught from passenger
HONG KONG: Customs officers seized about 378 grams of cocaine and 759 grams of heroin at the Hong Kong International Airport, with a total estimated market value of $ 1 million. A female passenger was arrested. The arrested person aged 51. She was an incoming passenger arriving at Hong Kong from Uganda, via Doha, Qatar. She was suspected to put the drugs in a checked-in suitcase with an aim to evade customs' detection.
anf seizes drugs worth over Rs3.8b LAHORE
Non-tariff barriers being removed to boost Pak-India trade: Dastgir
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ven though the composite dialogue between India Pakistan is suspended, trade talks are continuing and will continue in order to increase commercial exchanges between the two countries. Problems about land trade through Wagah and nondiscriminatory market access will be eliminated gradually. This was stated by Federal Minister for Commerce Khurram Dastgir Khan while talking to Customs Today after the inauguration of India show. “Foreign ministries of both the countries should work together to deescalate tension between the two countries,” the minister said. Addressing the inaugural session of the 2nd India Show at Expo Centre, the minister said that Pakistan should have friendly relations with all its neighbouring countries and promote trade with them. The minister said that trade was a force which would help Nind new avenues of prosperity between the two countries. “Visa restrictions are the biggest non-tariff barriers. However, these barriers will be considerably brought down. Cultural and academia exchanges are very important and sharing experiences of each other's training institutions is also signiNicant,” he added. He said that there was a great opportunity to grow if both countries normalised their relations. The minister said a sense of conNidence was needed for improved trade between both countries. Federation of Indian Chambers of Commerce and Industry Senior Vice President Dr Jyotsna Suri said that vibrant cooperation between Pakistan
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nti Narcotics Force has recovered 3,652 kg charas and 5.5 kg heroin amounting to Rs 3,843 millions in the international market. Operations were conducted at six different sites of Balochistan, Khyber Pakhtunkhwa and Punjab provinces, official sources said. According to details, ANF Quetta on a tip off, recovered 3.6 tonnes of charas loaded in an unregistered vehicle. The vehicle was parked in folds of mountainous terrain in area of Killi Shadi Zai, Tehsil Gulistan, district Qilla Abdullah. ANF Lahore recovered 36 kg of charas from a car with registered number AK-229 Islamabad, from Samundri Road, Faisalabad. The driver of the car, Fakhar un Nabi resident of Peshawar has been arrested at the spot. The drugs were tactfully concealed in cavities of the vehicle. ANF Peshawar recovered 2.4 kg charas from possession of a person near Kacha Ghari, Jamrud Road, Peshawar. Accused, Abdullah resident of Khyber Agency was being arrested at the spot. ANF Peshawar also recovered 4 kg heroin from a Land Cruiser with registered number NS-555 Islamabad, near Toll Plaza, Peshawar. Four persons were arrested at the spot, namely Khalid Mehmood, Muhammad Anwar, Fakhar Zaman and Rana Muzamil Haji Abdul Ghafoor. Similarly, ANF Peshawar recovered 1.5 kg heroin from possession of two persons near Sabzi Mandi, Haripur. Both accused Jamil Akhtar and Awais were arrested at the spot. Cases have been registered in Police Stations and further investigations are under process.
and India would result in better growth in both countries. She said that Pakistan had great potential to attract tourists and huge foreign exchange. Lahore Chamber of Commerce and Industry (LCCI) President Sohail Lashari said that trade relations between Pakistan and India should grow in a harmonized way. He said that both countries should work hard to boost their economic relations. Indian Commerce Ministry Joint Secretary Arvind Mehta, Indian High Commissioner in Pakistan TCA Raghavan, SAARC Chamber of Commerce and Industry President Vikramjit Singh Sahney, SAARC CCI Vice President Iftikhar Ali Malik and Trade Development Authority of Pakistan Secretary Rabia
visa restrictions are the biggest nontariff barriers which will be considerably brought down
Javeri Agha also spoke on the occasion. Meanwhile, FICCI SVP Dr Jyotsna Suri presented an FICCI status paper on India-Pakistan economic relations to Federal Minister Khurram Dastgir. Meanwhile, in a meeting with the delegation of leather garments exporters, Federal Minister of Commerce Khurram Dastagir has assured that the government will provide help to exporters in every possible way to implement the vision of Prime Minister of Pakistan. Pakistan Leather Goods Manufacturers and Exporters Association (PLGMEA) delegation comprised of its Chairman Chaudhry Ahmed ZulNiqar Hayat and senior members Syed Shujaat Ali and Nadeem Abbas. ZulNiqar highlighted the export related problems to the minister due to which PLGMEA members were not able to market their products in an appropriate way. He also informed about the difNiculties they had been facing in export of their products and the restriction on exporting leather garments with fur trimmings although all competing countries were exporting fur garments. Dastgir gave an assurance that the exporters were future of the country and government would provide full support to them by taking all the necessary measures to eliminate problems of exporters. He directed Additional Secretary Commerce to conduct a meeting with FBR and Wildlife authorities to clarify a way in exporting garments with fur trimmings, as soon as possible. This will ensure Pakistan not to bear the loss of export orders in the future due to fur issue. India, China and Turkey are exporting leather garments with fur trimmings to prominent European buyers. He also instructed the customs ofNicers to provide required services to exporters on the air and sea ports and to resolve their issues on priority level.
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04 NATIONAL
FEBRUARy 25 - MARCH 03, 2014
Smuggling attempt at torkham thwarted
LANDIKOTAL: Authorities at Torkham border have halted an attempt to smuggle heroin and arms from Afghanistan. Sources said that during routine checking at the border, the Khassadar personnel recovered six kilograms heroin from the possession of an Afghan national. The heroin had been concealed in ghee packs and being smuggled from Afghanistan to Pakistan. Meanwhile, Khassadar personnel seized a foreign-made pistol from an Afghan national, currently serving as district judge in a district of Nangarhar province of Afghanistan.
Exporters raise concern on working of port terminals he exporters have raised their deep concern on the procedures at terminals due to which they are facing multiple problems. One of the exporters on condition of anonymity told Customs Today that the terminal operators were charging scanner charges from the exporters, despite the fact that no scanner has been installed so far at the terminals. He further informed that frequent delays have occurred in the issuance of user ID/password for the customs agents and exporters by the preventive staffers of FBR posted at different gates. He further said that the Risk Management System (RMS) was not properly implemented on the LCL exports, adding that unnecessary contravention reports are being made in those cases where no revenue loss to the government was being occurred. Giving his suggestions for improving exports, he said that FBR should take initiative towards the establishment of help desk at every exporting station, comprising PRAL and Pakistan Customs staffers, who are operating the system round the clock. Dealers’bank should be linked on-line with WeBOC, computerised system for verification of Form-E, he added. He further said that the selection of shipping companies in the system should be done in alphabetical order and shipping companies should be registered at terminals. —CT Report
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Customs plays vital role in facilitating Indian traders ndian traders at the India Show while expressing their views about Pakistan Customs said that the department played a vital role in facilitating the Indian traders at the 2nd India Show. Indian traders were of the view that customs department’s special arrangement of goods examination and clearance at the Expo Centre was a novel idea that facilitated them a lot. Deputy Collector Customs Iram Sohail told CustomsToday,“We have speedily disposed of their invoices in advance at their convenience besides setting up parallel system here. Our examiners were examining their goods at their stalls and the traders who were going back to their country were refunded customs duty on unsold items without any inconvenience.” “It is a good experience to be in Pakistan. Our jewellery designs are being appreciated. People are buying as Indian jewellery is much cheaper than that of the Pakistani jewellery,” said Mehul Coski, owner of Rajwarah jewellers. Umang Mehta, another jeweller expressed similar feelings. India Gems and Jewellery Association President A K Dughal talked to this scribe in similar fashion saying that it was a great pleasure to be here in Pakistan.“However, I would like to say that next time there should be separate exhibitions for Indian jewellery as most of the people do not know difference between original and artificial.” —CT Report
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darreviewscapacitytax collection,greytrafficissues
FTO announces regional office in Faisalabad
The capacity system was introduced in the last budget to allow the industry work freely, without unnecessary interventions from the department while duly contributing to the national exchequer ISLAMABAD
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inance Minister Ishaq Dar presided over a meeting of the FBR authorities and representative of the beverage companies to discuss revenue collection under the capacity tax rules. The Ninance minister observed that the capacity system had been introduced in the last budget to allow the industry work freely, without unnecessary interventions from the department while duly contributing to the national exchequer. On the occasion, the FBR chairman presented revenue performance of the aerated water industry during the Nirst half of the current Niscal year and suggested various options to meet the projected targets. The industry representatives reafNirmed their commitment to increase their net tax payment by 25 percent and continued with the capacity system. However, there was some difference of opinion on the modali-
Industry representatives reaffirmed commitment to increase their net tax payment by 25pc
ties for meeting the targets. Meanwhile, Finance Minister Senator Ishaq Dar chaired a meetings of the Grey TrafNic and Spectrum Auction Advisory Supervisory Committee. The meeting was also attended by Minister for Science and Technology Zahid Hamid, Minister of State for Information Technology Anusha Rehman, IT Secretary Dr Syed Ismail Shah, Pakistan Telecommunication Authority Chairman, Ikhlaq Tarrar and senior ofNicials. On the occasion, the PTA chairman briefed the meeting on the measures taken to curb the grey trafNic and informed that 14 percent increase in white trafNic had been witnessed in the month of January 2014 as compared to December 2013. During this period 40,000 suspected IPs were blocked. In the meeting of Spectrum Auction Advisory Supervisory Committee progress regarding the auction process was highlighted by the PTA chairman. The committee was also informed regarding the discussion which Ministry of IT and PTA delegation had during road shows/meetings in Saudi Araiba and Qatar early this week.
ederal Tax Ombudsman (FTO) Abdur Rauf Chaudhry has announced to establish a regional office in Faisalabad for the resolution of tax related complaints of business community. He said this while addressing the members of Faisalabad Chamber of Commerce and Industry (FCCI). He said that tax base is being expanded by registering 0.1 million new tax payers into tax net this year. He said that he has already advised the taxation authorities not to mechanise the things as delaying tactics when refund claims cases were approved for payment. He said that SRO culture needs to be discouraged as its prerogative lies with the National Assembly after the approval of the budget. Earlier in welcome address FCCI President Engineer Suhail Bin Rashid said that in the presence of power shortage and increased prices of industrial inputs, cost of production has increased manifold. In such circumstances, easy taxation will produce more revenue to the national exchequer. —CT Report
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MCC Enforcement (South) collects revenue of Rs51.4m in January KARACHI
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nder the dynamic leadership of Chief Collector Enforcement (South) Muhammad Yahya, Model Customs Collectorate of Enforcement (South) of Pakistan Customs has collected revenue in share of evaded customs duty and taxes of Rs 51,378,336 after seizing smuggled goods worth of Rs 145,060,145 in the month of January 2014. According to details, MCC Enforcement (South) has detected a total of 91 cases of duty evasion from different parts including Hazarganji, Quetta; Koila Phattak, Quetta; 53-Sachan Rangers, Baldia Town, Ormara; MCC Gwadar; Outside Railway Station, Shikarpur; Chaman Road, near Baleli; Customs check-post, Barbarloe; Airport Road, Quetta; Gadani; Gora Qabiristan, Airport Road, Quetta; Mochako checkpost, RCD Highway, Gwadar; customs check-post, Jacobabad; Turbat; Hawkesbay Road, Karachi; Police Station, Surjani Town, Karachi; Lucky Chowrangi area, RCD Highway; Panjgoor, near Taj Petrol Pump, Shikarpur
Road; Jinnah International Airport; near Lakhi Morr, District Shikarpur; National Highway near Matyari city; Railway Station, Rohri; Sheela Bagh, Quetta; near Ziauddin Hospital, Keamari; Mauripur truck stand; customs check-post, Jacobabad; near Jamra Village, Shikarpur District; Ayub Stadium, Quetta; Killi Abto near Chaman border; Jiwani; customs check-post, Khurkhera; Customs check-post, Surab, Quetta; and SITE Police Station, Karachi. The collectorates of the Enforcement (South) which took part in the seizures were MCCQuetta, MCC-Preventive, MCC Gwadar and MCC-Hyderabad. The seized goods consist of vehicles of different models, diesel, o i l tankers, motorcycles,
hashish, cars’ engines, nickel anode plates, diesel (Iranian), fabric, parachute cloth (foreign origin), tyres, wielding material, carpets, gutka, polythene (plastic dana), LED TVs, heroine, currency, opium, cigarettes (foreign origin), soap, gum, blankets, crane ‘Kato,’ Husk (Ispagol), toys, toiletries, auto parts, speed boats with Yamaha engines, Crystalline Amphetamine, chocolates, vegetable oil, cakes, dish wash, shampoo, LCDs, grease a n d saris (made in India).
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ISLAMABAD 05
FEBRUARy 25 - MARCH 03, 2014
customs chases shipment’s delivery to bust culprits
SYDNEY: Australian customs have seized methamphetamine stashed in kayaks shipped from China after chasing the shipment all the way down to the delivery end. Officers at the Sydney Container Examination Facility selected a container from China for X-ray inspection. The inspection revealed anomalies with the consignment of 27 sea kayaks. The examination revealed 19 of the 27 kayaks contained packages of a white crystallized substance.
parliamentarians tax directory
100 Mps yet to file their tax returns ISLAMABAD
MPs given time till 28th: Bajwa
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Talpur Rs243,901, Opposition Leader in National Assembly Syed Khursheed Shah Rs62,214, Senator Aitzaz Ahsan Rs8,763,691, MQM’s parliamentary leader Dr Farooq Sattar Rs70,888 and Ch Shujaat Hussain Rs1,824,382 tax. The FBR has given details of 1,072 parliamentarians who Niled their returns while the
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t least 100 out of 1,172 parliamentarians belonging to all political parties did not pay their taxes as per the tax directory of MPs issued by Federal Board of Revenue (FBR). According to the tax directory for the year 2013, Prime Minister Nawaz Sharif has paid Rs2.646 million tax, Speaker National Assembly Sardar Ayaz Sadiq Rs148,868, Punjab Chief Minister Shahbaz Sharif Rs3,644,003, Federal Minister for Railways Khawaja Saad RaNique Rs1,215,365, Interior Minister Ch Nisar Ali Khan Rs57,124, Finance Minister Ishaq Dar Rs824,891 and income tax levy of Rs2.701 million, the son-in-law of PM Capt (retd) Muhammad Safdar Rs77,500, Muhammad Hamza Shahbaz Sharif Rs4,383,138, Federal Minister for Petroleum Shahid Khaqan Abbasi Rs1.205 million, Federal Minister for Water and Power and Defence Khawaja Muhammad Asif Rs58,719 as income tax and Rs19,607 as income tax levy, PML-N parliamentary leader Shaikh Aftab Ahmed Rs315,115 income tax and Rs19,475 as income tax levy, Federal Minister for Planning Ahsan Iqbal Rs11,084, Danyal Aziz Rs311,974 and Sheikh Rohail Asghar Rs5,903. PTI Chief Imran Khan paid Rs194,936 tax, Asad Umar Rs532,918, Shaikh Rashid Ahmed Rs58,410, Shafqat Mehmood Rs168,100, Sardar Owais Ahmed Leghari Rs140,025 and Ghulam Sarwar Khan Rs557,034. Ch Pervez Elahi has paid Rs791,600 tax, the sister of former President Asif Zardari, Feryal
BR ChairmanTariq Bajwa said that the nonfiler parliamentarians have given time till 28th February to file their tax returns to avoid any action against them. More than 30 MNAs and Senators are among the 100 parliamentarians who did not file their tax returns so far.There are two categories of parliamentarians. Some parliamentarians out of 1,072 filed their returns but showed nil income.The other category is of the 100 parliamentarians who are non-filers. Finance Minister Ishaq Dar in his statement on the eve of launching tax directory himself stated that 1,072 parliamentarians out of 1,172 filed their returns meaning thereby that remaining can be called non-filers in the official language of the FBR.The ParliamentariansTax Directory 2013 reveals details about those 1,072 parliamentarians who have filed their tax returns out of total 1,172.TheTax Directory did not share any information about those who did not file their returns.When contacted, Chairman FBR Tariq Bajwa said that a provisional tax directory was issued by FBR and time has been given to parliamentarians to file their returns till February 28 after which the tax directory would be finalised.“Law will take its own course for those who do not file their returns by February 28,” he added. —CT Report
names of all those who did not bother to Nile returns were not included into this directory. Those who have Niled their tax returns with nil from the Senate include Sardar Mohammad Yaqoob Nasir and Gul Mohammad Lot. The non-Nilers in the National Assembly include Hamid ul Haq, Sajid Nawaz, Gulzar Khan, Siraj
Muhammad Khan, Maulana Mohammad Gohar Shah, Amir Haider Khan, Mujahid Ali, Sheryar Afridi, Sardar Muhammad Yousaf (Federal Minister for Religious Affairs), Qari Muhammad Yousaf, Sher Akbar Khan, Murad Saeed, Salim Rehman, Iftikhar Uddin, Shabzada Tariqullah, Sahibzada Muhammad Yaqoob, Junaid Akbar, Bi-
lal Rehman, Sajid Hussain Tori, Syed Ghazi Ghulab Jamal, Muhammad Nazir Khan, Ghalib Khan, Muhammad Jamaluddin, Bismallah Khan, Shahabuddin Khan, Alhaj Shah Jee Gul Afridi, Nasir Khan, Dr Muhammad Afzal Khan Dhandla, Ghulam Rasool Sahi, Muhammad Talal Chaudhry, Nisar Ahmed, Ghulam Muhammad Lali, Sahibzada Muhammad Nazir, Najaf Abbas Sial, Ch Asadur Rehman, Mian Tariq Mehmood, Rana Umar Nazir Khan, Azhar Qayyum Nahra, Nawabzada Maher Ali, Ch Jafar Iqbal, Ch Abid Raza, Ch Armaghan Subhani, Rai Mansab Ali Khan, Salman Hanif, Muhammad Arif Ch, Syed Muhammad Ashiq Hussain Shah, Rao Muhammad Ajmal Khan, Muhammad Moeen Wattoo, Malik Abdul Ghafar Dogar, Makhdoom Javed Hussain Hashmi, Abdul Rehman Khan Kanju, Muhammad Khan Daha, Rai Hussain Nawaz Khan, Rai Hasan Nawaz, Ch Muhammad Munir Azhar, Syed Muhammad Athar Hussain Shah Gilani, Ch Nazeer Ahmed, Sajid Mehdi, Sardar Muhammad Amjad Khan Khosa, Malik Sultan Mehmood, Ghulam Rabbani Khar, Sahibzada Faizul Hasan, Makhdom Syed Ali Hussain Gilani, Makhdoom Khusro Bakhtiar, Ihsanur Rehman Mazari, Pir Sadaruddin Shah, Khalid Maqbool Siddiqui, Sardar Kamal Khan Chan, Pir Noor Muhammad Shah Jilani, Malik Asad Sikandar, Shamas un Nisa, M Salman Khan Baloch, M Rehan Hashmi, Abdul Hakeem Baloch, Abdul Rahim Mandokhel, Abdul Qahar Wadan, Maualana Ameer Zaman, Mir Dostan Khan Domki, Zafarullah Khan Jamali, Maulana Qamar Din, Mst Naseema, Mrs Aliya Kamran, Nafeesa Innayatullah Khan Khattack, Sajida Begum, Aashia Gulali, Shahida Akhtar Ali, Naeem Kishwar Khan, Begum Tahira Bokhari, Aisha, Begum Majida Wyne and others.
Exportsonfakedocuments:Customstoblowmoneylaunderingnexus ISLAMABAD
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he Model Customs Collectorate (MCC) Exports capture of consignments being exported on fake documents prompted Pakistan Customs to plan carrying out investigation into transactions of commercial exporters to discover linkages of money laundering. It is to be noted that the MCC (Exports) Karachi caught a leather industry, reportedly, involved in exporting consignments to UAE on fake documents. The Collectorate also seized five containers of the company being shipped to Dubai under fake documents. On suspicion, the MCC got verified FormEs of the consignments from the bank concerned and found the Form-Es to be fake. Later, the Collectorate, upon a scrutiny of the company's past shipments, learnt that the company had exported goods worth over $0.6 million on fake documents. On the other hand, a study of the gov-
ernment's policies reflects that lack of provisions to curb money laundering have crippled the departments concerned to stop inward and outward movement of foreign currency through illegal channels. Currently, all black money - either generated by extortion mafia, land grabbers, tax evaders - can easily be laundered through Hawala or Hundi as section 111(4) of the Income Tax Ordinance, 2001 provides immunity from probe to the recipients of foreign remittances through proper banking channels. Meanwhile, experts while dilating on the issue, regretted that majority of commercial exporters used to submit fake Form-Es and receive foreign exchange through Hawala or Hundi. They attributed all such illicit transactions to tax evasion and camouflage the usage of foreign exchange. They pointed out that under the prevailing situation when the country was grappling with the menace of terrorism, effective curb on money laundering was inevitable to contain it.
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SPECIALREPORT
FEBRUARy 25 - MARCH 03, 2014
the government must increase the number of cargo trains. cargo trains between karachi and Lahore should run every three to four days. KARACHI
SohaIL Rab khan www.customstoday.com
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the government should connect gwadar port with other parts of the country through a well-thought-out railways system which would bring about multiple benefits
he shipping lines have been grappling with immense problems in term of revenue generation as most of the ‘refer’ (refrigerate) containers are laying abandoned at terminals, causing heavy loss to shipping lines. All Pakistan Shipping Association (APSA) Chairman Capt (r) Syed Mushtaq Ali Shah revealed during an exclusive interview with Customs Today at his ofNice. Syed Mushtaq claimed that the APSA was only association with mandate to represent shipping, terminals, ports and off-dock terminals, adding that the association was striving hard to resolve the issues being faced by its members. Commenting on tax system, the APSA chairman said that the Federal Board of Revenue (FBR) should remove ambiguities in tax collection on services as the shipping lines were already paying 8 percent tax on freight service. However, the FBR authorities are contemplating increase in the freight service tax up to 16 percent which will put devastating impact on shipping lines,” he voiced concern. Syed Mushtaq pointed out that the FBR and Pakistan Customs were facing millions of rupees loss due to non-clearance of 2,500 TEUs (20-feet containers) for some legal reasons at Karachi Port and Port Qasim for the last six years. The APSA chairman suggested to the FBR authorities to arrange for auction of the stuck containers which would help generate millions of rupees revenue. He divulged that a delegation of the APSA had already taken up the issue with the Chief Collector-Appraisement (South) Nasir Masroor Ahmad who assured that the Pakistan Customs would arrange auction of the items contained in the stuck containers at the earliest. To a query, Syed Mushtaq contended that the FBR by improving facilities and
infrastructure on ports and terminals could enhance trade and revenue. Replying another query, the APSA chairman said that rates of charges of shipping lines were very clear and notiNied, adding that these rates included delivery order charges, documents, CFS, Insurance, DG and cleaning charges. He rejected the impression regarding hidden charges being charged by shipping lines from importers and exporters, saying that it was mere perception. Commenting on WeBOC, Syed Mushtaq declared that it was an efNicient system introduced by FBR, however, it had some hitches as its functioning differed at Karachi Port and Port Qasim. To a query, the APSA chairman said that the Gwadar Port should be used as “transit port” with better infrastructure keeping in view the economic growth of the country. He further said that the transit terminals should be established at ports to enhance trade activities for secure future. Underlining the importance of railways network, Syed Mushtaq said that no port in the world could run without proper railways track, adding that the government should focus on development of railways system to enhance upward country trade. “Trade with Central Asian countries should also be increased through the development of railways system”, he asserted. Syed Mushtaq urged the government to enhance cargo trains, adding that cargo trains between Karachi and Lahore should run every three to four days. He emphasised that the government should connect Gwadar port with other parts of the country through a wellthought-out railways system which would bring about multiple benefits.
FEBRUARy 25 - MARCH 03, 2014
SPECIALREPORT 07
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08 EDITORIAL
FEBRUARy 25 - MARCH 03, 2014
Founder & Chairman Zulfiqar ali Editor Rahil yasin 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
a step towards promotion of tax culture
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akistan has become fourth country in the comity of nations where the tax directory has been launched.The publishing of tax directory is a welcoming step as it will give an opportunity to voters to ascertain that how much their representatives are paying their due taxes and discharging their national duty. On the basis of performance, they will give their judgment in the future elections of the country if tax directory becomes permanent feature every year. The payment of tax will become part of our discussion on the economic and political horizon of the country and will set the stage to put mobilization of resources as the centre of stage for our future discourse. TheTax Directory published by the FBR is a welcoming step for which Finance Minister Ishaq Dar and Chairman FBRTariq Bajwa deserve appreciation for their courageous step. Although, the publishing of tax directory is a step in the right direction but it is not the ultimate objective, rather it can become a source for moving towards the desired objective and that is promoting tax compliance culture in this country. The tax directory has revealed that there are 100 parliamentarians out of 1172 who did not even bother to file their tax returns. As a matter of fact, the FBR high-ups made all-out efforts to pursue them for filing their returns as special facilitation centres were established in National Assembly, Senate of Pakistan and into the premises of four provincial assemblies.The FBR staff was deputed to facilitate them and NTN were issued to all parliamentarians. At one stage, Prime Minister Nawaz Sharif himself had intervened and asked the ruling party members to file their returns. On this high-level persuasion, there were 1072 parliamentarians who have filed their income tax returns.There were many who showed their nil income.There were few who showed their tax in the range of Rs 50 to Rs 1000. Now Chairman FBRTariq Bajwa has given the deadline of Feb 28, 2014 to remaining 100 parliamentarians to come forward and file their returns so that their names could be included into upcoming general tax directory that would be launched in next month. About non-filers and less-filers, the law of the land should take its course to establish the writ of the state. If FBR will not take action against influential segment of the society such as Parliamentarians then there will be no moral ground and justification to take action against other tax defaulters and dodgers. The directory of parliamentarians also shows that the tax culture in our country is indicating pathetic situation from top to bottom where less than one percent population is filing its income tax returns. On sales tax registration side, few hundred giant companies are contributing into taxes and there is complete de-link between taxpayers and tax officials. Now the time has come when the FBR should come forward and take all steps required for promoting tax culture.The usage of technology in wised manner coupled with credible information by establishing data bank can help tax machinery to promote this culture and first of all the government will have to demonstrate its political will for taking hard and bold decisions to broaden the tax base, otherwise the stagnant tax-to-GDP ratio cannot be increased in near future.
without skilled workforce, broadening of tax net to remain a distant dream ISLAMABAD
SM haIdeR
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n the wake of slapping ban by the government on recruitment of fresh jobs, the Federal Board of Revenue (FBR) has been facing severe constraints of human resource and this difNiculty will aggravate with passage of time if remedial measures are not taken well on time. Total numerical strength of the tax collection machinery is 23,000 and mid carrier staff below grade 17 is reducing at accelerated pace as most of the staff is rapidly approaching the age of retirement. After witnessing acute shortages of human resource, the FBR has made special presentation to Finance Minister Ishaq Dar last month for seeking waiver on fresh recruitment into the tax collection machinery by treating it as special case. During their presentation to the Finance Minister, the FBR has informed that around 5000 to 7000 employees are going to be retired from the Board in the near future, so the human resource gap is going to widen. In last few months, all proposals of the FBR for hiring new workforce were rejected by the government. FBR Member Customs Nisar Muhammad had proposed Customs Border Force (CBF).
In order to overcome menace of smuggling to be around $2.5 billion estimated by USAID, the FBR had proposed the establishment of CBF and creation of 10,000 posts in phases. The existing workforce posted at borders to control smuggling comprises just 124 sepoys with most of them being above 55 years of age. Referring to a recent report by the World Bank, the country lost approximately $35 billion between 2001 and 2009 on account of smuggling under the guise of Afghan transit trade alone. The FBR has proposed to Prime Minister three structures including Customs Border Patrolling Posts (CBPPs), Range and Regional OfNices, CBF to monitor and curb smuggling in Khyber Pakhtunkhwa, Quetta, Gwadar and Karachi and establishing CBF headquarters in Islamabad headed by a director general of BS-21. But this proposal was rejected by the government. Now after the visit of the Finance Minister Ishaq Dar and assurances given by him, the Chairman FBR has forwarded a summary to the PM Nawaz Sharif for removing ban on jobs especially in the context of pressing requirement in the FBR. The FBR has prepared a concept paper and presented it to the high-ups of the government. Top ofNicials also referred to another
now there is need to allow permission to the fbR to hire services of technically equipped workforce to broaden its narrowed tax base
study undertaken by USAID, which found that every year $2.5 billion goods are being smuggled back into Pakistan via the Afghan transit trade. According to the FBR concept paper, the main enforcement unit will be the Customs Border Patrolling Posts (CBPP), which will be responsible for patrolling enforcement against smuggling of narcotics, chemical precursors, explosive precursors, contraband items, raw material and general merchandise from the neighbouring countries and sea into Pakistan. Patrolling posts will be created after every 50-60 km in the areas alongside the borders of Afghanistan and Iran and along the coastal belt of Pakistan. Four to Nive CBPPs would be monitored by the Range OfNice headed by an ofNicer not below deputy director and these ofNices will be located in a city or town that is strategically important to control smuggling. Now there is need to allow permission to the FBR to hire services of technically equipped workforce to broaden its narrowed tax base as the government intended to increase tax-to-GDP ratio by 5 percent in next Nive years, bringing it up to 14 percent from existing below 9 percent. Without improving its workforce, the dream of increasing tax-to-GDP ratio cannot be materialized.
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FEBRUARy 25 - MARCH 03, 2014
09
exports expand by 4.64pc in 7 months of fy 2013-14
LAHORE: Pakistan’s exports have expanded by 4.64 per cent while imports witnessed an increase of 0.48 per cent during the period from July to January in the current fiscal year as compared to the same period of last fiscal year, official data revealed. The exports from the country during the period were recorded at $ 14.699 billion against the exports of $ 14.047 billion recorded during July-January 201213, the data said.
Saad directs development of infrastructure at Mughalpura Dry Port
he highest decision-making body of the Federal Board of Revenue, the Board-in-Council, remained indecisive to come up with a clearcut approach and strategy to rein in the corrupt practices within the organization and decide as to who will police its officers. The FBR’s Board-in-Council met amid lack of internal mechanism to check the taxpayers and officials’collusion for tax evasion. However, the Board-in-Council failed to decide whether or not to task the Human Resources Management (HRM)Wing with vigilance by taking away powers from the Directorate General of Intelligence and Investigation. It is to be noted the HRM itself has sought the powers which the FBR called necessary a step for“integrity management”of its workforce. However, due to the HRM’s capacity constraints and lack of experience in handling such issues, the Board-in-Council remained reluctant to take a decision in this regard. The board also constituted a four-member committee with the objective to evolve a consensus on the issue, said FBR spokesman Shahid Hussain Asad. He said that the committee would comprise of FBR Member InformationTechnology Raana Ahmed, Member Audit Haroon KhanTareen, Member HRMyasmin Masud and Member Inland Revenue Policy Shahid Asad. On the other hand, any further delay in the process could undermine the government’s efforts to prepare and implement a tax administration plan. Under the $6.7 billion loan programme, Pakistan has assured the IMF that it is framing a comprehensive plan to strengthen tax administration.The government has also promised that it will amend the Anti-Money Laundering Act of 2010 to include tax crimes in the schedule of offences that will enable the use of AML tools to combat tax fraud.The deadline for the amendment is June 2014. In the wake of absence of a foolproof mechanism and apparent “immunity”the tax evaders enjoy, the FBR is being dubbed one of the most corrupt organisations in the country. On the other hand, as an incentive to lure officers away from corrupt practices, civil servants working in the FBR are offered a salary double than what government servants are getting. However, this has not stopped the officers and the staff from indulging in corruption. So far, the Directorate of Intelligence and Investigation has been informally monitoring the officers. During routine work, if the wing comes to know about involvement of the officers in corruption, it sends the information to the FBR headquarters for action. In the absence of any formal internal controls, many officers even did not file their income tax returns. —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: letters@customstoday.com.pk
LAHORE
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ailways Minister Khwaja Saad RaNique has directed railways top ofNicials to allocate 50 percent of the total proNit for Mughalpura Dry Port’s infrastructure development. The minister was addressing Customs ofNicials, Customs agents, Railways top ofNicials and others on inauguration ceremony held in connection with the arrival of freight trains after many years at the Mughalpura Dry Port. “Spend half of the collected revenue from the Mughalpura Dry Port on its infrastructure development. Revival of economy is priority of the government to put the country on way to progress and prosperity,” the minister stated. He said the PML-N was answerable to the nation, adding corruption and nepotism would never be tolerated in any department, including the PR. The minister said there was no political interference in his department and he would not even tolerate any interference in work of the PR ofNicers who were running the department efNiciently. "I have taken over the charge of the PR by keeping my political afNiliation aside," he added. He said culture of the PR ofNicers and workers had been changed now. He directed the PR management to form a committee headed by AGM TrafNic Javaid Anwar Boobak to evolve a comprehensive strategy for
— Exlusive Customs Today photo
Reining in corruption within: fbR indecisive on policing powers
resolving issues of the dry ports across the country. He said Pakistan and Turkey had signed MoU for the restoration of ECO train from Islamabad to Istanbul via Tehran, adding Indian authorities were also being contacted for transportation of Indian freight to Turkey and Iran. Lahore Customs Agents Association Ch Amjad, thanking the Minister for Railways said that it was due to the untiring efforts of Khwaja Saad RaNique that Mughalpur Dry Port became operational. He said that at the very beginning of the People Party’s government, arrival of freight trains started declining and within one year, arrival of the locomotive came to a grinding halt which accelerated the business of road containers. He urged the minister to visit the port once in a month in order to en-
corruption and nepotism would never be tolerated in pakistan Railways
sure development of infrastructure at the port. “It is for the Nirst time in 20 years that railways track has been cleaned due to the arrival of the minister and walls have been painted,” Amjad said. The Mughalpur dry port was being run proNitably; however, in order to facilitate Karachi investors, Prame Nagar Dry Port was set up at the cost of Mughalpur Dry Port. He urged the minister to develop infrastructure to make Mughalpura Dry Port proNitable. He also demanded of the minister to resettle freight fair and loading charges which should be acceptable for all the stakeholders. PR AGM TrafNic Javaid Anwar Boobak, Customs Agents President Agha Iftikhar, customs and railways ofNicials and a large number of workers were present on the occasion.
trainingcoursesforcustomsclearing&forwardingagents To, The Chairman, Federal Board of Revenue, Islamabad Respected Sir,
I would like to draw your attention towards one of the prevailing issues in connection with the training of Customs agents as FBR is not holding any diploma or degree courses for them. As, you know that the Customs agents, as a community, are playing a signiNicant role in the economic growth of the country and contributing a major chunk of revenue to the exchequer. The Customs agents need to technically empower themselves in order to handle the Customs affairs, as it is a responsible and technical service, however; Pakistan Customs does not have any proper mechanism to train Customs agents before entering into this field.
Although, the Directorate of Training and Research (DGT&R) holds training sessions at regular intervals, but it is imparting training to all veteran Customs agents, who had joined the Nield for last 20 to 25 years. The Directorate of Training and Research should initiate proper degree courses of 2 years in this regard and issue clearing/customs agents licenses to those who clear the examination of diploma courses and complete their training. I would like to draw your kind attention towards the said matter that the newcomers through self-clearance can easily enter themselves into the system, however; they even do not know how to prepare the Goods Declaration (GD) form. Therefore, I hope that you will take the said matter into consideration and undertake appropriate steps in this regard. Yours’ Truly, Shaikh Habib-ud-Din, Karachi
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10 PICTORIAL
FEBRUARy 25 - MARCH 03, 2014
paapam pleads for end to 2pc extra St
ISLAMABAD: Pakistan Association of Auto Parts and Accessories Manufacturers (Paapam) has appealed to Finance Minister Ishaq Dar and FBR Chairman Tariq Bajwa to resolve the issue of two percent extra sales tax on non-retail sales of auto parts which has been under discussions for the past four months. According to Paapam Chairman Usman Malik, despite reaching a consensus on the issue, the long delay in withdrawal of 2pc extra sales tax on non-retail sales of auto parts had created uncertainty.
WeBOCup-gradation:Officialsaskedtoexpeditework KARACHI
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irectorate of Reforms and Automation Project Director Syed Tanvir Ahmad has directed the WeBOC team to ensure upgradation of the remaining modules by February end. Chairing a meeting at his office, Syed Tanvir Ahmad asked the officials concerned to expedite the process to meet the deadline well in time. Sources said that FBR Chief Tariq Bajwa had issued directives for the completion of upgradation of remaining modules in WeBOC. It is pertinent to mention here that upgradation of modules including Afghan Transit Trade (ATT) reverse/retrograde cargo, exports, gems AND jewellery, bonds in WeBOC computerised system cloud not be completed so far. It is to be recalled that the FBR had set Jan 1, 2014 as deadline for the Directorate of Reforms and Automation to upgrade the WeBOC modules. However, the WeBOC team sought one month extension in the deadline to complete the entire task by February end. The sources informed that now the Directorate of Reforms and Automation would complete up-gradation of the WeBOC modules by the end of current month (February).
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beIJIng: President Mamnoon Hussain attends a ceremony with Chinese President Xi Jinping to sign different agreements at the Great Hall of the People.
kaRachI: FPCCI Acting President Shaukat Ahmed presenting a shield to Chief Collector Appraisement Nasir Masroor Ahmed.
LahoRe: Governor Punjab presenting souvenir to newly-elected President of Siddique Trade Centre, Syed Azhar Abbas Shah.
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LahoeR: Customs Today flex at Expo Centre during India Show.
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Man detected with cocaine weighing 1.28kg in tummy
DUBAI: Inspectors in Dubai Customs have foiled a bid to smuggle cocaine stuffed in capsules and concealed in passenger’s tummy. The smuggler swallowed 60 cocaine capsules weighing 1.28 kg. He was coming into the UAE from an African country. Director Dubai Customs Ali Al Mughawi said that inspectors’ expertise, vigilance and knowledge of body language were precise when the African passenger raised their suspicions as he walked into the customs checkpoint.
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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