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pAKISTAN’S FIRST INDepTH NewSpApeR oN CUSToMS

Vol 2 Issue No. 27

Karachi, Tue july 22 - Mon july 28, 2014

weekly

Regd. No, MC-1381

Price Rs. 50.00

FIR LODGED

AwARDINg TAxpAyeRS

TCS, Smart Zone Co face inquiry for evading millions The Prime Minister hands over the privilege cards to top 100 taxpayers of different categories which will be valid for one year. | See pAge 04 |

Customs authorities raided TCS warehouse in Fazaia Colony near Rawalpindi Airport and recovered electronic gadgets worth millions including 800 Korean made air conditioners, dozens of refrigerators, LCD TVs, microwave ovens and washing machines ISLAMABAD

ReFUSINg TARgeT CUT

MUHAMMAD FAIZAN www.customstoday.com

I Addressing Chief Commissioners conference, Ishaq Dar has refused to cut down the revenue target of Rs 2810b for FY 2014-15. | See pAge 02 | ACHIeVINg ReVeNUe TARgeT

FBR Chairman directed Members of the Board to expedite the efforts to achieve the revenue target for FY2014-15. | See pAge 03 | RejeCTINg pLeA

FBR rejects DrTahirul Qadri’s request for a one month extension to respond to the board’s notices and submit wealth statements. | See pAge 04 |

nvestigations have been instigated against The Courier Services (TCS) and Smart Zone Company for their alleged involvement in smuggling of electronic gadgets under cover of Afghan Transit Trade.

As per details, TCS with collaboration of Smart Zone Company allegedly imported electronic gadgets worth millions under Afghan Transit cover without paying duty. Directorate General Customs Intelligence and Investigation (DG I&I) Rawalpindi has Miled FIR against TCS Chief Executive Saqib Hamdani and CEO Smart Zone Shakir-ullah along others and teams have been made to arrest them.

A source from Customs Intelligence told Customs Today that on a tip-off, Customs authorities raided TCS warehouse in Fazaia Colony near Rawalpindi Airport and recovered electronic gadgets worth millions including 800 Korean made air conditioners, dozens of refrigerators, LCD TVs, microwave ovens and washing machines.

TCS in initial investigations denied all the allegations of smuggling and responded that the imported items belonged to some third party and kept at its warehouse only for delivery. Later, investigations revealed that these gadgets belonged to a private company Smart Zone. TCS Chief Executive Saqib Hamdani and Smart Zone CEO Shakir-ullah have signed a written agreement.

Moreover, as per agreement TCS has been delivering these electronic gadgets to dealers of Smart Zone all over the country via TCS logistic transport consisted of 230 satellite tracked trucks which usually are not checked by Customs. The collaboration of these two companies had cost

national exchequer billions of rupees.

It is important to note that a similar raid has been conducted at Lahore TCS warehouse recovering electronic gadgets worth millions of rupees. The stickers of Afghan Transit could be seen on smuggled items.

Directorate of Customs Investigation and Intelligence Lahore lodged FIR against companies involving in large scale smuggling and seized contraband worth Rs 60 millions at a private warehouse.

A Customs ofMicial conMirmed that they have prevented a smuggling attempt involving Rs60 millions of contraband goods including a large num-

The stickers of Afghan Transit could be seen on smuggled items recovered from TCS warehouse

ber of split ACs, LED TVs and other gadgets.

As per details, the seized electronic appliances include 1,412 split air conditioners, 711 LED TVs, 87 washing machines, two refrigerators and three vacuum cleaners involving millions of duty evasion.

These consignments belonged to two companies M/s Smart Zone (Pvt) LTD and M/s Mobile Sales and Distribution (Pvt) Ltd. A source told the Customs Today that the goods were Mirst stored in Islamabad warehouse of Courier Company and then brought to a warehouse in Lahore and expected to be delivered and distributed to the sales points subsequently. Further investigations into the case are in progress.

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KARACHI

JULY 22 - JULY 28, 2014

FBR to audit 42,000 tax payers for Fy2013-14

ISLAMABAD: Audit selection of taxpayers will be held at FBR headquarters in September of this year.

The selection will be made on the tax returns filed by taxpayers in year 2013. As per details, about 45 thousands taxpayers from cooperate and non-cooperate sector will be selected for audit for year 2013-14. Audit selection will be made through National tax number (NTN) in Sales Tax, Income Tax and Federal Excise Duty departments differently.

Pak Customs guarding borders against smuggling: Collector SIALKOT

ZAFAR MALIK

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Dar refuses to cut FBR revenue target of Rs 2810b FBR chairman directs the tax commissioners to expedite the tax collection from defaulters ISLAMABAD

CUSToMS ToDAy RepoRT — Exclusive Customs Today photo

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Collector Qurban Ali ollector Model Collectorate of Customs Sialkot Qurban Ali Khan said that Pakistan Customs has been guarding Pakistani borders against smuggling and facilitating the legal trade.

Talking to the CustomsToday at his office, Qurban said that the Pakistan Customs has been trying to assist FBR in his revenue collection efforts in the form of duty recovery on goods traded across the borders. It has also been helping domestic industry to flourish by discouraging illegal import of goods.

He informed that MCC Sialkot has been responsible for all the Customs related activities within Gujranwala, Sialkot, Hafizabad, Gujrat, Mandi Bahauddin and Narowal districts. Collector said that examination and clearance of import & export consignments at the Sialkot Dry PortTrust (SDPT) has been carried out using advanced technology.“We are trying to improve the capacity of customs and SDPT officials for better use of technology and using intelligence tricks during examination,” he added.

Moreover, he said that MCC has been trying to curb the menace of smuggling within its jurisdiction which will revive country’s economy and local industry.

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MultanCustomsseizes tyres,autoparts,cars worthRs3.5m ultan Customs Intelligence seized goods Rs3.5 Million in two different raids on possible tax evasion here on the other day. As per details, Customs Intelligence carried out an operation on tip of some informer and recovered two imported cars in Sakhi Sarwar Police Station’s area.While, in another raid, Customs Intelligence seized tyres and auto parts from Jaffer Express which were booked for Quetta, Okara, Gujarawal and Lahore.The operation was headed by Customs Intelligence Officer Nisar Ahmad. According to Customs Officials, the estimated worth of imported cars has been Rs2 Million and the goods booked on Jaffer Express Rs1.5 Million making a total of Rs3.5m. —CT Report

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ederal Minister of Finance Ishaq Dar has made it clear to Federal Board of Revenue (FBR) that revenue target of Rs 2810 billion will not be lessened at any cost for FY 2014-15.

While addressing to tax commissioner conference in FBR headquarters, he said, “I am fully confident that FBR has the ability to collect revenue more than the target assigned”.

Moreover, he said that the economic policies of government were appreciated by the world adding that new petroleum policy was also successful as the recent hike in petroleum price at international market has little effect on domestic petroleum price.

Earlier in the tax commissioners conference, the strategy to achieve the revenue target for current fiscal year and enforcement and implementation of budgetary measures were also discussed in details. The meeting was attended by chief commissioners and commissioners of Federal Board of Revenue.

Furthermore, FBR chairman has directed the tax commissioners to expedite the tax collection from defaulters and to tackle the delaying tactics of defaulters while paying their due tax.

In the meeting it was decided that rules and regulations will be strictly followed in the field formations operations while field formations offices were directed to update the headquarters about their progress on regular basis.

Land Port Authority to oversee ITTMS: Dar uring the second meeting of the Steering Committee on IntegratedTransitTrade Management System, Finance Minister Senator Ishaq Dar lauded Committee members for visiting all three sites includingTurkham, Chaman andWahga for establishing land parts under ITTMS and completing the preliminary work in this regard.

The Finance Minister said that Land Port Authority should oversee the construction, and management and maintenance of the integrated border crossing points and future extension. He said that LPA should act at the common platform for all regulatory agencies

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including customs, immigration, terminal operator, security, quarantine, banks, shipping agencies, freight forwarders etc. and the concepts would be based on various administration models followed around the world in countries like Singapore, India and Bangladesh.The Minister further directed that LPA should be self-sustaining entity, with maximum operational and financial autonomy.

The Finance Minister directed the chairman FBR to present first draft of PC-I by 21st August for consideration and approval by the committee. On this occasion, Commerce Minister Khurram Dastagir said that the setting up of the

Nasir Masroor asked to redress traders grievances KARACHI

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he traders in a letter to Chief Collector Appraisement-South Nasir Masroor Ahmed demanded to formulate a committee, comprising representatives from trade bodies for immediate redressal of trader’s grievances.

A source from FBR updated the Customs Today about the letter from traders in which they have requested FBR Chief Collector Appraisement-South Nasir Masroor Ahmed to devise a committee comprising of FBR ofMicials and representatives from traders. Moreover, they also demanded the Collector Appraisement to hold monthly

meetings with that committee to take suggestions from trade bodies.

The importers in the letter expressed their deep concerns over the pathetic services provided by Pakistan Customs ofMicials and terminal staff at Karachi International Containers Terminal (KICT).

The traders were of the view that importers were suffering millions of rupees loss due to delay in grounding the containers, adding that it will take 6 to 7 days for grounding a container. However, on the other hand the Pakistan Customs authorities claimed that grounding of container could take only 6-7 hours.

Moreover, traders stated that unskilled and incompetent labour at KICT has also been creating impediment for grounding and clearing of the containers.

Therefore, traders demanded Pakistan Customs authorities to start issuing show-cause notices to terminal operators in case of negligence, to abolish “Red PCT” culture and to activate automation and Risk Management System. They also insisted to show Valuation Rulings to the traders at the time of filing the Goods Declaration (GDs) so that they should be liable to file correct GD. The traders requested that Assessment officials should be ordered to release the GD without any delay.

Furthermore, traders grieved about poor lighting condition and shortage of area of examination at KICT, adding that FBR should also allow traders to formulate their private teams to handle the goods during examination.

modern land ports with the neighbouring countries will enhance regional trade and cooperation. He pointed out that in future more border crossing points will be setup in order to curb smuggling.

Earlier, chairman FBR Tariq Bajwa in a detailed presentation briefed the participants about the progress made so far with regard to establishing land parts at Turkham, Chaman and Wahga under integrated transit trade management system. According to Bajwa, the project has been included in PSDP 201415 and final draft of PC-I is about to be completed. —CT Report

Importers rue poor facilities at KICT he importers have expressed concern over the problems they have to face at KICT during examination of imported consignments, saying that the poor service deliver have been adding to the cost of doing business. Giving vent to their annoyance at the pathetic performance of terminal staffers, the importers demanded the authorities concerned to improve the service delivery by the Customs officials and KICT administration.They vehemently demanded specifying and elaboration of the role of terminal authorities to provide facilities to traders and importers, adding that the terminal operators particularly, the KICT had completely failed to ensure facilities to importers/trade at the examination area. —CT Report

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ISLAMABAD 03

JULY 22 - JULY 28, 2014

LCCI, ICAp to form working group on tax reforms

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) and Institute of Chartered Accountants of Pakistan (ICAP) have decided to form Joint Working Group on Tax Reforms and to resolve the tax-related issues of the business community. This was decided at a meeting between the LCCI President Engineer Sohail Lashari and Chairman CPD Committee of Institute of Chartered Accountants of Pakistan (ICAP) and renowned Tax Expert Rafqat Hussain here at the Lahore Chamber of Commerce and Industry.

BR field formations have been flouting the FederalTax Ombudsman (FTO) directives while making fresh assessment of taxpayers without caring for the benchmark guidelines set by the FTO in this regard.

According to details, in the past the FBR has issued directions to its field formations vide C No-1 (337)S(TO-II)/2013 dated January 23, 2014 and C No-1 (11)CSTRO/FBR/2013 dated October 25, 2013 to take into account FTO directives while making fresh assessment of taxpayers. Under the provisions of FTO Ordinance, 2000, the FTO makes time bound findings/recommendations through his order while disposing of complaints.

Thereafter Advisers (I&M) concerned monitor the process of implementation.The FBR has also directed its field officials, in writing, not to delay the issuance of refund under any pretext in cases where the FTO or any competent Court, has directed that refund be issued even if that entails “breaking the queue.”

According to the provisions of Federal Ombudsman Institutional Reforms Act, 2013 (FOIRA), it is the bounden duty of the FBR functionaries to implement the unchallenged FTO’s recommendations, where the department has neither filed any review application before FTO nor preferred any representation before the President against the FTO. However, some field formations are not only involved in defiance of orders issued by FTO but they are also disobeying the binding instructions issued by their parent agency“FBR.” Instructions issued by the FBR are binding on all functionaries but they failed to follow the same in the cited case.The IRS officials should be held accountable for nonobservance of binding instructions and non-compliance thereof should be treated as misconduct and the defaulting officers must be proceeded against under Efficiency and Discipline Rules. —CT Report

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Collaborative efforts needed for achieving revenue target: Bajwa FBR Chairman instructed the Board Members to resolve the legal disputes with traders to enhance mutual coordination with them to avoid legal trials ISLAMABAD

FBR starts homework to achieve revenue target

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BR Chairman emphasized Members of FBR to expedite the efforts to achieve the revenue target for FY2014-15.

As per details, FBR Chairman Tariq Bajwa presided an important meeting on budget/revenue reforms and their execution plans to achieve the revenue target for FY 2014-15.

The Meeting was held at Federal Board of Revenue (FBR) head quarter here the other day.

In the meeting Member Inland Revenue Policy Shahid Asad, Member Legal Ahmad Dildar, Member Inland Revenue Muhamad Ashraf along with others presented proposals for better revenue collection.

Moreover, Member Legal Ahmad Dildar briefed the participants on pending revenue cases in courts, whereas, Member Inland Revenue Policy and operations Muhamad Ashraf presented suggestions regarding Budget and revenue reforms.

Later, FBR Chairman instructed the FBR Members to resolve the legal disputes with traders and to enhance mutual coordination with traders to avoid legal trials.

He also stressed to lessen the number of pending cases in courts.

BR has started efforts to achieve revenue target of current financial year budget.

According to details for the execution of budgetary measures continues meetings are held in FBR headquarter chaired by chairman FBRTariq Bajwa every Saturday.

In this regard an important meeting was held here onWednesday chaired by Tariq Bajwa while all the members including member customs Nisar Mohammad, Member IR Policy Shahid Asad, Member Administration Shahid Hassan Jatoi, member Legal Ahmed Dildar, Member IT Raana Ahmed and Member IR operation Mohammad Ashraf were also attended the meeting.

Earlier Additional Chief Commissioner Karachi, Khorrho briefed the participants subsequent to reviewed the budgetary measures of Revenue target. FBR members told the meeting about measure taken to achieve the revenue target. Members of the meeting also discussed the agenda of chief commissioner conference. According to sources Chairman FBR may visit Lahore, Karachi and Sialkot in coming days or after Eid. Chairman FBRTariq Bajwa has warned, if any objection about corruption, departmental or duty neglect are observed, strict action will taken against such responsible officers and staff. —CT Report

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— Exclusive Customs Today photo

FBRfieldformations defyingFTO’s directives

FBR Members agree to devise a new administrative policy for revenue collection

Furthermore, suggestions from different members to ensure better revenue collection were also discussed.

FBR Members agreed to devise a new administrative policy for revenue collections. It was believed in the meeting that collaborative efforts with business community needed, to avoid misunderstandings and to achieve the revenue target.

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ISLAMABAD

JULY 22 - JULY 28, 2014

govt. will revive sick units to stabilize economy: Dastgir Minister

ISLAMABAD: Commerce Minister Eng. Khurram Dastgir asked the members of the delegation of Faisalabad Chamber of Commerce and Industry (FCCI) to provide the Ministry with complete details of the closed units and the number of employees which were rendered out of work due to the closure here the other day. He said the details about ill units will help the government to devise policy to solve the problems of the business community.

Hyderabad Customs takes on smugglers, seizes 42000 litres Iranian HSD

premier awards ‘privilege cards’ to top taxpayers

HYDERABAD

ASLAM ANjUM QUReSHI www.customstoday.com

ISLAMABAD

CUSToMS ToDAy RepoRT www.customstoday.com

n pursuance of information communicated by Muhammad IbrahimVighio, Collector Model Customs Collectorate, Hyderabad, Aziz Ahmed Katpar, inspector customs Special Anti Smuggling Squad Larkana seized a Hino truck 10-wheeler loaded with 42000 litres of smuggled/non-duty paid Iranian High Speed Diesel involving duties and taxes approximately amounting to Rs 1,877,400.The smuggled Iranian HSD was transported from Iran via Balochistan to Interior Sindh on July 17.The market value of the seized smuggled HSD and tanker is approximately Rs 900 million.

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Mansha family shines on top 100 taxpayers list our members of the Mansha Family were recognised by the government at a special ceremony held to honour the top taxpayers for 2013.

The function was presided over by the Prime Minister and attended among others by Minister for Finance Ishaq Dar. Those listed among the top 100 taxpayers in the“Individual Category”, include Hasan Mansha at 4th, Umer Mansha at 11th, Raza Mansha at 28th and Naz Mansha at 59th. Ammil Raza Mansha was awarded for being 59th among the top 100 taxpayers in the “Non-Salaried Category”.

In addition, Imran Maqbool, President & CEO, MCB Bank was also recognised at the ceremony and awarded an Honour Card being number 6th in the “Company Category”. —CT Report

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5 customs officials suspended he Model Customs Collectorate (MCC) of Appraisement-West has issued directives of suspension for Principal Appraiser Abdul Shakoor Sheikh, Upper Division Clerks Muhammad Saeed and Zafar Imam and placed two sepoys MuhammadYaseen and Fawwad Saad off-duty with immediate effect. Abdul Shakoor Sheikh, has allegedly failed to maintain discipline in FTA Cell.

Authorities have also suspended two UDCs namely M Saeed and Zafar Imam in their involvement in same charges mentioned above.

The MCC Appraisement-West through Officer Order No107/2014 has placed two sepoys MuhammadYaseen and Fawwad Saad off-duty with immediate effect.

Furthermore, in continuation of Office Order No.112/2014-ESTT (AW) it has also stopped the performance allowance, equal to salary, of officials. —CT Report

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he Prime Minister Muhammad Nawaz Sharif handed over the Privilege Cards to top 100 taxpayers of different categories at Prime Minister’s office Auditorium. The cards will be valid for one year. The ceremony was also attended by Ishaq Dar, Finance Minister and Chairman Federal Board of Revenue (FBR), Tariq Bajwa.

The scheme has been launched to promote a tax-compliant culture in the country and will recognize top 100 taxpayers, each year, which will be getting Excellence Awards by the Prime Minister, access to VIP lounges at airports, fast track clearance at immigration counters, issuance of gratis passports and a baggage allowance enhanced from Rs500 to Rs 5000 dollars.

“I am addressing to people who have contributed more to the taxes and played a prominent role in revitalizing the economy of Pakistan for the last one year. The ceremony has been convened to acknowledge your services for the nation”. The Prime Minister Muhammad Nawaz Sharif said in his address at the launch of Taxpayers' Privileges and Honour Card scheme.

Prime Minister asked to avoid the Politics of past era, while referring to some political parties.

PM added that now as we have entered the twenty first century yet some political parties are talking about revolutions. Such actions do not favour the country. Their actions are only meant to destabi-

lize the political progress and democracy”, PM said.

The Prime Minister said no one can be permitted to hinder the journey of progress at any cost and he urged all political parties to join hands in the government’s development agenda for the betterment of the country.

Prime Minister said that Development cannot take place in days nor all the problems can be resolved overnight. We had to take hard decisions in order to put back t h e economy o f

Pakistan on track, PM added.

PM also cited a number of power generation projects including two power houses of 1300 MW at Port Qasim, 660 MW at Thar, 1300 MW at Jamshoro and enhanced capacity project of 2500 MW at Tarbela Dam. PM further said Neelum Jhelum project would also be operational by 2017.

He said there has been an increase of three percent in number of taxpayers in the country, while the fiscal deficit had declined to four per cent. He also mentioned the positive response of investors to the Euro Bonds adding that it speaks about the success of government's economic policies.

Prime Minister said that the green line bus project Karachi is

Privilege cards: FBR Member Admin calls it tribute to taxpayers — Exclusive Customs Today photo

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Member Admin Shahid Hussain BR Member Administration Shahid Hussain Jatoi said that the award of 'privilege cards' by premier is a reward and incentive to taxpayers from FBR. Talking to Customs Today after the ceremony of awarding ‘privilege cards’ to taxpayers, he said that awarding of honoured cards is very rare in world, nowhere taxpayer being awarded with special privilege cards.

He explained that Privilege Cards have been issued to 100 top taxpayers in each of the following categories of salaried individuals, non-salaried individuals, Association of Persons and companies.

“It will help FBR to enhance tax collections as it has removed the common believe of taxpayers that government has not been giving proper respect they deserved”he said.

He believed that all Pakistanis should contribute in country's prosperity by paying their taxes on time adding that Issuing of gratis passport is a tribute to taxpayers as even BPS 21 officers of government have not been issued the said passport and privileges. He lauded the minorities and said that most of the awardees were from minorities showing their commitment to country’s economic progress. —CT Report

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high priority project. “Supply of water scheme and Karachi-Lahore motorway project has also been initiated for Karachi,” PM added.

The Prime Minister lauded Ishaq Dar for the increase in the foreign exchange reserves that had increased to Rs 14 billion dollars and hoped it will touch Rs 15 billion dollars mark, as promised by him in next few months.

Earlier while addressing the gathering, Ishaq Dar said “Privilege and Honour Cards have been issued to 100 top taxpayers in each of the following categories of salaried individuals, non-salaried individuals, Association of Persons and companies.” “If every single Pakistani pays his or her tax, the economy would be strengthened,” he mentioned.

Rs770mevasion:Qadri’s pleafortimeextensionturneddown ISLAMABAD

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BR has rejected Pakistan Awami Tehrik (PAT) Chairman Dr Tahirul Qadri’s request for a one month extension to respond to the board’s notices and submit wealth statements.

The FBR has informed Mr Qadri that he must respond within seven days otherwise he would have face penalty proceedings under section 182 of the Income Tax Ordinance 2001. Other members of Board of Directors (BoD) and ofMice bearers of Idara Minhajul Quran (IMQ) also requested for a one-month extension.

However, the FBR has turned down their applications.

On the other hand, it has prepared a case against the PAT chief and other members and afMiliates of the IMQ for evading taxes worth Rs770 million.

The FBR has also issued second notices to Tahirul Qadri and other members and afMiliates on the charge of concealing assets. The FBR sources revealed that their wealth statements do not show all the assets, transactions and accounts which have been recently traced.

According to the notices, the FBR requested them to furnish the wealth statement and give details of their assets and liabilities between June 2009 and June 2013. FBR also asked for details of the assets and liabilities of their spouses, children and other dependents. Furthermore, the FBR notices reveal that any assets that have been transferred and total expenditure also need to be submitted.

The deadline for submission was July 15. According to sources familiar

with the matter, Dr Tahirul Qadri and other members and afMiliates of Minhajul Quran did not appear before the competent authority on July 15.

The FBR decided to take matters in their own hands and impose taxes along with a penalty.

Director foreign affairs of Minhajul Quran and principal secretary to the PAT chief Muhammad Mustafa that the FBR issued Mive separate notices to each person demanding wealth statements despite the fact that Dr Tahirul Qadri and Minhajul Quran had provided wealth statements up until June 30. He added that these notices are a good example of political victimization. They reveal how the government misuses state institutions like FBR, FIA and the police to serve its own end, he said.

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NATIONAL 05

JULY 22 - JULY 28, 2014

AIB of MCC Appraisement-west yet to recover 3 vehicles

KARACHI: The Appraisement of Intelligence Bureau (AIB) of the Model Customs Collectorate of Appraisement-West has failed to recover three smuggled vehicles out of total seven, passing two month since start of case. According to the details, the AIB of MCC Appraisement-West had recovered four smuggled vehicles of Mercedes Benz C-200, Model 2008 out of seven which were imported on fake letter of Ministry of Commerce.

However; three smuggled vehicles of different models yet to be recovered by the Pakistan Customs.

Collectorate of enforcement-South collects Rs20517.88m customs duty Chief Collector Enforcement -South Muhammad Nazim Saleem expresses his satisfaction over the duty collection of MCC-Gwadar and MCC-Exports KARACHI

Enforcement-South seizes goods worth Rs25.242m in 40 days

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KarachiAirportattack: Importerslamentover delayinreimbursement he importers have been facing trouble in getting their compensation of duty, announced by the government after Karachi airport attack in which billions of worth consignments including mobile phones, electronic accessories, computer accessories and others set ablaze in the warehouse of Jerry’s Dnata.

As per details, the victims of Karachi airport attack told CustomsToday that authorities were using delaying tactics and not cooperating with insurance companies in their joint survey through which the estimated loss could be determined.

It may be mentioned here that the importers had lost their billion of worth consignments laid in sheds of Jerry’s Dnata which was completely destroyed in the Karachi airport attack on June 8, 2014. They requested FBR and Pakistan Customs to take notice of the delaying tactics of authorities. —CT Report

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FunctionalpCAto enhancerecovery BR has been facing impediments in its revenue recovery operations due to incompetency of Directorate of Post Clearance Audit (PCA).

Talking to CustomsToday, experts from Pakistan Customs were of the view that the PCA was one of the significant departments of FBR, however; not proper functional now.“The shortage of manpower and lack of interest of the high authorities of FBR was affecting the performance of the Directorate of PCA” they argued. Moreover, experts said, many important seats were vacant including Appraisers, Principal Appraisers, Assistant Directors and Deputy Directors in the Directorate of PCA. Furthermore, they maintained that the responsibilities performed by R&D Section of MCC Appraisement -East and PRV Section of MCC Appraisement -West should also be improved further to Enhance the revenue recovery operations. —CT Report

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he Collectorate of Enforcement-South along with MCC-Preventive, MCC-Hyderabad, MCC Exports, MCC Quetta and MCC Gwadar collected Rs20517.88million altogether in terms of Customs Duty (CD) against the target of Rs23008.40million for FY 201314.

As per details, Customs Duty collection of Rs 20517.88 was Rs2490.52million less than the target of Rs23008.4 million for FY 2013-14.

According to the figures revealed by FBR, the MCC-Preventive has collected an amount of Rs13618.88million against its target of Rs16172.20 with the difference of Rs2553.32million.

The MCC-Hyderabad has collected an amount of Rs4351.75million against the target of Rs5883.97 with the difference of Rs1532.22million.

Moreover, MCC-Exports throughout the fiscal year from July 2013 to June 2014 has managed to collect Rs4575.42million over its set target of Rs4102.77million with the margin of Rs472.65million.

The MCC-Exports (Port Qasim) has collected an amount of Rs3269.52million against its set target of Rs6163.94million with the deficit of Rs2894.42million.

Furthermore, Quetta MCC has managed to collect Rs763.64million against the set target of

he Collectorate of EnforcementSouth seized smuggled goods worth Rs25.242 million in last 40 days.

As per details, the Collectorate of Enforcement –South Muhammad Nazim Saleem conducted raids in RCD Highway, Super Highway, West Wharf, Bolan Road, Customs Check-post in Lake pass, Chaman Road, Balali Check-post, Hala Naka Road in Hyderabad, Toll Plaza in Sukkur, Customs Check-post in Jacobabad and Khurkhea in Gwadar.

During the raids Customs officials seized smuggled items, including printed materialized file aluminium, PVC printed films, fuel, dispensers, nozzles, PP bundles, cartons of hair gel, diesel, petrol, thinner, mobile oil, Iranian diesel, grease, kerosene oil, vehicles, perfumed, deodorant sprays, hair colour cream, cigarettes, tyres, iron and steel waste scrape and dumpers worth million of rupees.

The Chief Collector-Enforcement – South Muhammad Nazim Saleem while talking to Customs Today, expressed his satisfaction over the performance of Preventive Collectorates of Gwadar, Quetta and Hyderabad. He lauded the efforts being made by Pakistan Customs’ officers.

Moreover, he said that officers still need to improve their performance more, in order to stop tax invasion by smugglers.

“Pakistan Customs officers will continue their efforts in order to drive better results”he added.

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— Exclusive Customs Today photo

MCC-Exports throughout the fiscal year from July 2013 to June 2014 manages to collect Rs4575.42million over its set target of Rs4102.77million Rs1870.74million with the massive shortfall of Rs1870.74million.

On the other hand, Gwadar MCC has collected an amount of Rs477.71million against its set target of Rs379.02million with the excessive amount of Rs98.69million at the end of FY2013-14.

The Chief Collector Enforce-

ment -South Muhammad Nazim Saleem has expressed his satisfaction over the duty collection of MCC-Gwadar and MCC-Exports, although he stressed the other Collectorates to improve their performance in order to achieve the revenue targets in the next FY2014-15.

Recoveryof$200b:FBRexpertstovisitSwitzerlandnextmonth ISLAMABAD

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team comprising FBR experts will visit Switzerland next month to plead with Swiss authorities the return of untaxed billions of dollars of Pakistanis stashed away illegally.

According to Finance Minister Ishaq Dar, the FBR team would visit Switzerland in the third week of August.

Dar said that he had already got approval from the cabinet to formally initiate negotiations with the Swiss authorities for possible recovery of billions of

dollars belonging to Pakistanis in offshore accounts.

The finance minister explained that it was a lengthy process and might take a few years. It is assumed that Pakistani nationals have over $200 billion stashed away in Swiss banks. One of the directors of Credit Suisse AG Bank has stated on record that $97 billion from Pakistan is deposited in his bank.

Similarly, Micheline CalmyRey, the then Swiss foreign minister, is reported to have put the figure of Pakistani money hidden in Switzerland at $200 billion — a statement that has not been contradicted.

The government will seek

help through the new Swiss laws to exchange confidential information about the ill-gotten monies stashed away in Switzerland’s banking system.

Under a new law, known as The Restitution of Illicit Assets Act 2010 (RIAA), the Swiss government allows the exchange of confidential information about the money deposited in its banks.

A summary was placed before the federal cabinet seeking its approval to renegotiate the existing (deficient) PakistanSwitzerland Tax Treaty, which was approved in September 2013.

Dar was recently quoted to

have told parliament that the Swiss authorities had expressed its willingness to renegotiate the current Pak-Swiss agreement.

Pakistan’s DTA with Switzerland, signed in 2005 and enforced in 2008, does include Article 26, which creates an obligation to exchange information relevant to the correct application of tax treaties.

Pakistan would have to prove that the money deposited in Swiss banks by its nationals is untaxed following which without compromising the conMidentiality of its clients, the payable tax money could be deducted from such accounts and provided to the Government of Pakistan.

— Exclusive Customs Today photo

06

SPECIALREPORT

www.customstoday.com JULY 22 - JULY 28, 2014

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SPECIALREPORT 07

JULY 22 - JULY 28, 2014

FBR asked Law Ministry to handover performance report of lawyers dealing with FBR cases in Supreme and High Courts

ISLAMABAD

MUHAMMAD FAIZAN

O

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ver 2,350 cases pending in apex courts are costing at least Rs 200 billion to national exchequer annually. Misunderstanding of revenue laws, flexibility of some laws and trivialization of cases are some of the main factors responsible for pendency of these cases.

As per details, over 1550 cases are pending in the Supreme Court and about 800 cases in High Courts. National exchequer has lost Rs70 billion and Rs130 billion in Supreme and high courts respectively due to these pending cases. Increasing pending cases are not only a big worry for FBR but also depriving it of billions of rupees.

Talking to Customs Today exclusively, FBR Member Legal Ahmad Dildar confirmed the stats adding that a revised policy is needed to tackle the problem.

“FBR Chairman has also been briefed on the pending cases and its proposed solutions,� he said. Dildar said courts should launch a quick decision system to decide the cases. He said accused persons use different tactics including adjournment to postpone the cases as they do not want quick solution of the cases.

In this regard, Federal Board of Revenue (FBR) has decided to file an application to apex and high courts through Law Ministry for timely decision of pending cases to avoid billions of rupees revenue loss.

As per details, FBR decided to request the apex and high courts to devise a strategy for early resolution of FBR cases to end the legal wars, costing billions of rupees to the national exchequer. It will also save precious time of FBR officials, so they can focus on their revenue collection operations more attentively.

An FBR source informed Cus-

toms Today that FBR Chairman Tariq Bajwa has approved the suggestion of writing to apex courts of Pakistan, after that legal wing of FBR will file appeals in courts for early decision of FBR related cases.

Moreover, FBR has decided to decrease the number of lawyers in its panel which will save millions of rupees for the Board.

The number of total pending cases of FBR in Supreme and High Courts is 2350, involving revenue of Rs200 billion.

Furthermore, most of the cases were filed for the explanation of legal matters. The number is increasing with every passing day and the number of cases solved so far is very low.

Consequently, FBR has been spending a large amount on the fees paid to lawyers for proceedings of these cases.

Meanwhile, Federal Board of Revenue (FBR) has sought Law Ministry to remove lawyers with poor performance who are fighting its cases in different courts.

As per details, FBR asked Law Ministry to handover performance report of lawyers dealing with FBR cases in Supreme and High Courts. FBR has decided to remove these solicitors showing poor performance. Only capable lawyers with good track record will work for FBR. FBR legal wing wrote a letter to Law Ministry in which it asked the ministry to prepare a report on performance of lawyers proceeding FBR cases in courts. The step has been taken after the complaints about delaying tactics being used by lawyers while proceeding FBR cases. Currently, FBR has the highest amount of writs filed against it and lowest number of point of law references.

www.customstoday.com

08 EDITORIAL

JULY 22 - JULY 28, 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

well Done prime Minister

p

rime Minister Nawaz Sharif has rightly provided privilege cards to top 100 taxpayers in four categories each in order to recognize and honor their contribution for the national kitty at this time of need when revenue mobilization can play pivotal role for ensuring progress and prosperity of our beloved country.

This scheme was launched to promote a taxcompliant culture in the country by recognizing top 100 taxpayers, each year, who will be getting Excellence Awards by the Prime Minister, access to VIP lounges at airports, fast track clearance at immigration counters, issuance of gratis passports and a baggage allowance enhanced from 500 to Rs 5000 dollars. The cards will be valid for one year.

On FBR’s front, it was second move of the government in the right direction as earlier they released tax directory in a bid to ensure compliance in a country where non filing is rampant. Of 180 million populations, the number of return filers is less than 0.8 million. The tax-toGDP ratio falling below 9 percent of GDP is the lowest in the region and revenues collected by the government can meet only two expenditure heads including debt servicing and defense requirements. All other expenditures especially development, running of civil government, salaries, pensions, subsidies and all others were met through borrowing from domestic and external fronts.

This level of borrowing for the country like Pakistan will be unsustainable on longer term so there is no other option but to raise revenues for the sake of the country.

The FBR needs to simplify its rules and procedures as well as expand its narrowed tax base. But it is difficult to do than to say in the presence of ground realities of political-economy existing in this country.

So the government and the FBR should be encouraged on every right move they made to promote tax compliance culture in the country. At the start of the fiscal year, it is the right step to recognize those 400 taxpayers who contributed in terms of highest payment of taxes as it will encourage others to come forward and discharge their national obligations.

The Prime Minister, on this occasion, also lauded Ishaq Dar for the increase in the foreign exchange reserves that had increased to Rs 14 billion dollars and hoped it will touch Rs 15 billion dollars mark, as promised by him in next few months.

While addressing the gathering, Ishaq Dar said “Privilege and Honour Cards have been issued to 100 top taxpayers in each of the following categories: salaried individuals, non-salaried individuals, Association of Persons and companies.” If every single Pakistani pays his or her tax, the economy would be strengthened. He mentioned that 1, 20,000 persons had been issued notices to non-filers.

The honoring of honest taxpayers and penalizing the non filers will be the right approach the FBR should pursue to meet its increasing challenges for ensuring revenue mobilization to meet growing financing requirements of our country.

Power outages and sluggish economic activities ISLAMABAD

SM HAIDeR

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T

he increasing phenomena of load shedding have become potential threat to economic and political stability in the country.

It is negatively impacting the GDP growth, resulting into sluggish economic activities and slowing down of revenue generation.

During the ongoing Ramadan, the monster of load shedding increased manifold that even forced the federal minister for power to extend apology to the nation and advised them to seek help from God in shape of rainfall as it will decrease load on power system.

At the moment, there is power deficit ranging around 7000 MW in the country and rural as well urban centers are witnessing load shedding of around 12 to 20 hours depending on which city are residing.

When the country is under the IMF program the government cannot surpass the subsidy ceiling envisaged for

the power sector.

When the hydel power generation decreased then the demand for thermal power increased manifold, thus the government left with no other option but to increase the tortuous load shedding.

On other hand, the government is claiming that no one has taken steps to improve transmission and distribution system of power sector in last one decade so when the load increased by 1400 megawatt at Sehri and Iftari time the system got tripped and collapsed.

There is need to concede that there is no quick fix and they cannot solve the problem of 15 years in 14 months.

It will take few years to resolve the lingering power crisis. The load shedding increased during the ongoing Ramadan because the system could not absorb increased load because of outdated transmission and distribution system.

The load shedding reduced during last one year compared to the same period of year back except this temporary phase occurred in Ramadan.

There is need to change energy mix where the reliance should be decreased on thermal power

It was temporary phase and they would resolve it.

On other hand, the economists say that the load shedding became source of discomfort for people of Pakistan and one minister of the incumbent regime was asking the people to pray from God for raining to save from torturous power outages. At least, he said the minister should not have made such statement.

There is need to change energy mix where the reliance should be decreased on thermal power which is very expansive mode of generating electricity.

And the government should enhance its dependence upon hydel power generation by constructing small and medium size hydropower projects being the cheapest mode available in our country as there are several sites where run of the river hydropower projects could solve the lingering power crisis of the country. But it requires consensus on the direction of both federal as well as provincial governments in the wake of 18th Constitutional amendments.

www.customstoday.com

NATIONAL 09

JULY 22 - JULY 28, 2014

Sialkot Customs Intelligence seizes tiles, cosmetics worth Rs22.5m

SIALKOT: The Customs Intelligence seized Iranian tiles and imported cosmetics worth Rs 22.5m in two different raids in Gujranwala. In their first raid Customs Intelligence has seized a truck loaded with the Iranian tiles worth Rs. 20m near Gujranwala. According to reports, about 810 cartons of Iranian tiles were loaded in the truck, which was seized by Customs near Kangni wala Bypass Gujranwala. The Customs Intelligence also confiscated three mini pick up vehicles carrying the illegally imported cosmetics, perfumes, body sprays, soaps and shampoos worth Rs. 2.5m in another raid.

Work overload: 655 vacancies endanger RTO’s revenue operations SIALKOT

CUSToMS ToDAy RepoRT www.customstoday.com

he Regional Tax Office has been suffering overload of work on the incumbents from acute shortage of the officials threatening revenue operations in the region.

As per details, the Federal Board of Revenue (FBR) has already approved as many as 655 vacancies of different cadre officials at Regional Tax Office (RTO) Gujranwala but still no appointment witnessed.

On the other hand, about 375 employees have been working against total 465 seats resulting 90 seats lying vacant in Regional Tax office. Moreover, in sales tax department, about 130 employees were working against total sanctioned posts of 190 leaving 60 posts vacant.

A senior FBR officials briefed Customs Today that in Income Tax department, three posts of Commissioner Income Tax, one post of Additional Commissioner, four posts of Deputy Commissioner, 18 seats of inspectors, five seats each of inland revenue officer and steno typists, two seats each of office superintendent and DEO, 10 seats of upper division clerks, 17 seats of lower division clerks, 4 seats of drivers, 14 seats of Naib Qasid, one seat each of administrative officer, assistant director MIS, sanitary worker and gardener have been vacant since long and no appointment has yet been made despite of frequent requests to FBR. Furthermore, in Sales Tax department, five seats of superintendent, 13 seats of deputy superintendent, eight posts of auditors, six seats of inspectors, four seats each of DEO and upper division clerk, three seats of lower division clerk, two seats of drivers and one seat each of accounts officer, assistant director MIS and office superintendent have also been vacant.

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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

Mis-declaration

10 FBR officers fail to submit appointment letters

Customs seizes iron rods of SM Foods

ISLAMABAD

CUSToMS ToDAy RepoRT www.customstoday.com

MULTAN

IMRAN ALI

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T

he Customs Authorities have seized steel iron rods of biscuit factory of S.M foods on mis-declaration of goods.

As per details, Customs Intelligence and Investigation seized the consignment of Saim Mobeen Foods due to under valuation of steel iron rods used in baking biscuits imported last month.

According to Customs authorities, the goods imported worth more than 25 million but company declared their goods worth 4.5 Million.

Therefore, Customs Authorities formed a special team for the arrest of company manager Waseem Shehzad on producing fake documents for importer Chaudhry ZulMiqar.

A source told Customs Today that the culprits were trying to save more than Rs 5 million Customs duty through under valuation.

Moreover, Multan Customs Intelligence and Investigation lodged a Mir and a copy an FIR and sent it to special Judge for proceeding. While Saim Mobeen of S.M Foods is well known in the biscuit industry of Multan refused the allegations.

Customs Authorities have formed special teams for the arrest of company manger and importer and special teams of customs are raiding for their arrest.

GST cut will stimulate tractor sale, stabilize industry overnment decided to reduce the general sale tax (GST) on Tractors to 10% from already 17%, for FY 20142015 to enhance the tractor industry, directly linked to agricultural progress.

As per details, the federal government has initially decided to cut general sale tax on the manufacturing of tractor to enhance the agricultural growth and to improve tractor industry. Previously, tractor industry was being charged with 17% GST on manufacturing of tractor but now with its Agro-industry friendly steps, government decided to reduce it to 10%.

Moreover, Al Ghazi and Millat tractors,most prominent tractor manufacturers in country, have already shown their concerns over tractor’s sale and industry’s future as prices were very high for farmers to buy new agricultural equipments.

Consequently, reducing sales tax will affect tractor sale to great extent and it was estimated that about 65000 tractors will be sold out in the FY 2014-15. As reduction of GST will save Farmers Rs35000 per tractor, it will help reforms in agriculture sector, improving its GDP share. The manufacturers of tractors have been demanding reduction in sales tax for long as the sales went down with price hike, adding that tax relief will help industry

G

and agriculture flourish in country.

Furthermore, the revival of industry means employment generation in the 300 plus traders and several other related industries, improvement in government revenues, and improvement to the agriculture sector increasing its productivity and creating agricultural employment in rural Pakistan.

An industry source told Customs Today that the sales of the major tractor manufacturer may go above 65,000 units. He said that the tractor industry witnessed sales of just 35,000 units in last year 2013- 2014 (lowest recorded over the last seven-year period), down from highest ever 71,512 units sales in year 2010, adding that this GST reduction is expected to provide a significant boost to tractor sales.

On the other hand, as in July tractor sales go down because the farmers/growers were busy in sowing and growing the rice and cotton crops but the sales are expected to go up in the coming months and dealers and exporters have already started placing orders with the manufacturers.

Earlier, GST hike from January 2014 had pressed the assemblers to limit working in single shift followed by production suspension by two major manufacturers, resulting in workers' dismissal. —CT Report

ield formation offices of Federal Board of Revenue (FBR) have submitted the appointment letters of 52 employees of grade 1 to grade 16 at headquarter.

As per details, an inquiry in applications for the posts from BPS 1 to BPS 16 in Inland Revenue and Pakistan Customs departments of FBR has led to the fact that appointment letters and orders of many employees were not there in their files. However, many employees argued that the record of their appointment has been destroyed in year 2001 flood affecting many parts of the country.

The employees from both departments filed written application for the shuffling of their duties. When FBR started the processing of applications it was observed that initial appointment letters of many employees were not in their files. FBR instructed all Collectors, Deputy Collectors, Chief Commissioners, Statistical Officers and Accounts Officers appointed in field formations to inform all employees of BPS 1 to BPS 16 to submit two copies of their initial appointment letters to FBR as soon as possible.

FBR source told Customs Today that about 52 employees out of 62 had submitted their appointment letters till now leaving ten field formation officers to submit the copy of their appointment letters.

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Decrease in interest rate to spur economic activities To,

The Finance Minister, Govt of Pakistan, Islamabad Respected Sir, I would like to draw your kind attention towards a lively issue pertaining to the high interest/markup rate on investment.

Sir, it would surely be into your knowledge that the interest rate right now stands at 10 percent and the business community in monetary policy expected from the government that the interest rate would at least go down by 1per cent in order to spur industrial growth.

The high interest rate is crippling the industrial growth and it should be decreased by its present ratio.

Despite high inflation across the world, all major countries did not increase their interest rate and make special arrangements to curtail

the interest rate in order to protect their economy.

The high mark-up rate is one of the biggest hurdles in the way of investment in the country, as it is very high in Pakistan as compared to other countries in the world.

We demanded that it should be brought to at least 9per cent from the existing 10per cent, as one per cent decrease in interest rate was not a big deal for the government, but it will put a positive impact on the economy of the country, and the industry wheel keeps rolling otherwise closing of industrial units would result in massive unemployment and economic downturn.

I hoped that the present regime was making its all out efforts for the revival of economic activities in the country and cut in interest rate would be a bigger relief to the industrial sector.

Yours sincerely, Syed Farukh Mazhar, Chairman KATI, Karachi

www.customstoday.com

10 PICTORIAL

JULY 22 - JULY 28, 2014

eCC allows duty-free import of 100,000 tons of potatoes

ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet chaired by Finance Minister Ishaq Dar allowed duty-free import of an additional 100,000 tons of potatoes. The committee extended the deadline for duty-free potato imports till Nov 15. The potato prices averaged around Rs70 per kg on Thursday in most of the Ramazan bazaars despite repeated directives issued by the finance minister. Even in the open market, potatoes were being sold at Rs75-80 per kg.

FBR transfers grade 19-20 Customs bigwigs ISLAMABAD

CUSToMS ToDAy RepoRT

n a bid to end the longstanding impasse, the Federal Board of Revenue (FBR) regional chief commissioner met FBR Employees Revenue Alliance President Mian Abdul Qayyum and assured him of resolution to all legitimate issues of the employees. “We need to work together for the development of the regional tax office and welfare of the employees and taxpayers,” sources quoted FBR Regional Office-I Chief Commissioner (CC) Waqar Ahmad as having said.

In the past, the RTO-I had witnessed extremely awkward days during the tenure of outgoing chief commissioner Shahfqat Mehmood due to tussles between the union representatives and the CC. The CC had got registered FIRs against the FBR Employees union President Mian Abdul Qayyum.

“The chief commissioner came to our union office, requesting us to remove all protest banners hanging from the walls of the office and assured full cooperation for the resolution to the employees’ issues,” pointed out FBR union president Mian Abdul Qayyum.

On the occasion, the chief commissioner pledged to undertake inspectors’ promotion pending since 30 years,” the FBR staff union president informed and added that in the second phase the promotion of lower grade staff would also be taken up by the CC. Sources said that following the meeting the union have removed all banners inscribed with slogans against the FBR management from the office of the RTO-I. The chief commissioner’s step is being described as catalyst for normalizing the staff union and management relation in RTO-I which will boost performance of the tax collection staff. —CT Report

I

www.customstoday.com

BR has announced transfers/postings of 15 Grade 19-20 Customs Officers with immediate effect.

As per notification, Juneid Akram has been transferred as Director, Directorate of Intelligence & Investigation, FBR, Faisalabad on return from NMC, Muhammad Ibrahim Vighio (BS-20) has been transferred from Collector, Model Customs Collectorate, Hyderabad to Director, Directorate of Transit Trade, Karachi. He will hold additional charge as Director, IPR, Karachi.

Khawaja Umar Mehdi (Pakistan Customs Service/BS-20) has been transferred from Collector, Model Customs Collectorate, Faisalabad to Director, Directorate of Training & Research (Customs), Lahore, Fazal Yazdani Khan (Pakistan Customs Service/BS-20) from Collector, Model Customs Collectorate of Preventive, Lahore to Chief, Federal Board of Revenue (Hq), Islamabad and Abdul Rashid Sheikh (Pakistan Customs Service/BS-20) (On return from NMC) will assume charge as Director, Directorate of Customs Valuation, Karachi. He will hold additional charge as Director RMS, Karachi.

Muhammad Saleem Ahmad Ranjha (Pakistan Customs Service/BS-20) will assume charge as Collector, Collectorate of Customs (Adjudication), Faisalabad on return from NMC. Imtiaz Ahmad Khan (Pakistan Customs Service/BS-20) has been transferred from Collector, Collectorate of Customs

New beginning at RTO-I: Chief Commissioner woos ‘angry’ staff union

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Imtiaz Ahmed Khan

Dr Arslan Subuctageen (Adjudication), Islamabad to Director, Directorate of Intelligence & Investigation, Lahore and Manzoor Hussain Memon (Pakistan Customs Service/BS-20) from Director, Directorate of Intelligence & Investigation, Gwadar to Collector, Model Customs Collectorate of Exports, Customs House, Karachi. He will hold additional charge as Director, IOCO, Karachi.

Tausif Ahmad Qureshi (Pakistan

Mukarram jah

Dr Manzoor Hussain Memon

Fazal yazdani Customs Service/BS-20) has been transferred from Collector, Collectorate of Customs (Adjudication), Faisalabad to Collector, Model Customs Collectorate, Faisalabad.

Amer Ahmad (Pakistan Customs Service/BS-20) will assume charge as Director, Directorate of IPR, Islamabad on return from NMC. Wasif Ali Memon (Pakistan Customs

Service/BS-20) has been transferred from Collector, Model Customs Collectorate of Exports, Customs House, Karachi to Collector, Model Customs Collectorate, Hyderabad and Dr. Arslan Subuctageen (Pakistan Customs Service/BS-20) from Chief, (Accounting Wing) Federal Board of Revenue (Hq), Islamabad to (Customs Wing) Federal Board of Revenue (Hq), Islamabad and Ms. Suraiya Ahmed Butt (Pakistan Customs Service/BS-20) from Director, Directorate General of Customs Valuation, Karachi to Collector, Model Customs Collectorate of Port Qasim, Karachi and Mukarram Jah Ansari (Pakistan Customs Service/BS-20) from Director, Directorate of Intelligence & Investigation, Lahore to Collector, Model Customs Collectorate of Preventive, Lahore and Dr. Kamal Azhar Minhas (Pakistan Customs Service/BS-19) from Chief, (OPS) FBR (Hq), Islamabad to Collector, (OPS) Collectorate of Customs (Adjudication), Islamabad.

ISLAMABAD: Federal Minister for Finance, Senator Muhammad Ishaq Dar chairs a meeting on facilitating PakIran Trade at the Finance Ministry.

LAHoRe: Philanthropists donated Rs 3 million to Customs Health Care Society. Chief Collector of Customs Rozi Khan Burki and other were also present.

ISLAMABAD: Commerce Minister Khurram Dastgir Khan receiving a briefing from the investigation officer of FIA regarding the current status of investigation of corruption scandal in TDAP. Secretary Commerce Shahzad Arbab and Additional Secretary Azhar Chaudhry attended the meeting.

www.customstoday.com

NATIONAL 11

JULY 22 - JULY 28, 2014

FBR makes tax registration mandatory for peshawar retailers

PESHAWAR: FBR has made tax registration mandatory for retailers in Pershawar, Khyber Pakhtunkhwa through amendments in the Sales Tax Special Procedures Rules 2007. According to these amendments, tax registration is mandatory for retailers and big departmental stores in the country including KPK. Retailers must have the fiscal electronic sales register to issue receipts to consumers while smaller traders would pay sales tax according to utilization of electricity.

FBR takes back notices issued to Misbah, Hafiz, Akmal, Azhar LAHORE

CUSToMS ToDAy RepoRT www.customstoday.com

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BR has taken back notices served to national cricket players including Captain Misbah-ul Haq as an outcome of their meeting with Finance Minister Ishaq Dar recently.

As per details, FBR issued notices to cricket players due to non-payment of their taxes but after fruitful meeting with Finance Minister Ishaq Dar, the Board decided to reverse the notices of cricketers including skipper Misbah-ul Haq, Mohammad HaMiz, Azhar Ali and Umer Akmal.

As per notices issued by FBR to Pakistan Cricket Board (PCB), the said players were asked to pay tax on their incomes earned from PCB. However, after that meeting the notices were taken back while the bank account of cricketer Umer Akmal was also reinstated which was seized after the tax notice. Furthermore, according to those notices, skipper Misbah-ul Haq had to pay Rs 3.9 million, Mo-

Taxpayers denounce NBp delaying tactics he taxpayers expressed their deep concerns over pathetic performance and delaying tactics of National Bank of Pakistan (NBP), Customs House Branch while submitting Customs Duty and other taxes.

While sharing their views with Customs Today, taxpayers showed their anguish as they have been passing through tremendous agony during the holy month of Ramadan. they said, they have to wait in long queues outside the NBP branch for 4 to 6 hours for submitting their duty/taxes. It may be mentioned here that the authorities of NBP through a letter No. OPG/GA/677 on 10 April, 2014 informed the taxpayers that the NBP in order to facilitate the taxpayers have authorized five more branches to collect Customs Duty and other taxes.These branches include NBP Main Branch, Model Branch Clifton, Karachi Stock Exchange Branch, Awami Markaz Branch Shara-e-Faisal and Korangi Industrial Area Branch. However; those branches despite completing all legal formalities have not yet started operation in collecting duty/taxes due to delay in getting authority letter. The importers appealed the NBP authorities to take notice of the pathetic performance of NBP staff at Customs House in order to save the time of the tax payers in the sacred month of Ramadan. —CT Report

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hammad HaMiz Rs3.6 million, Umer Akmal Rs 2.6 million while Azhar Ali had to pay Rs2.5 million but after successful

meeting with Finance Minister in which players had informed the minister about their reservations on their taxes and re-

quested him to direct FBR to resolve the matter. Now FBR has reversed the notices issued to national cricketers.

Anti-narcotics drive

Sialkot MCC collector Qurban credits team work Customs authorities thwarted all 21 major attempts of smuggling narcotics from Sialkot General Post Office (GPO) during the last ten years SIALKOT

ZAFAR MALIK

www.customstoday.com

C

ollector Model Customs collectorate (MCC) Qurban Ali Khan has termed the success of anti-narcotics drive as good team work. He also lauded the sincere efforts of senior customs ofMicials including Additional Collector Irfan ur Rehman, Deputy Collector Asdaq Afzal and Assistant Collector Shamas ur Rehman Wazir for making the drive successful.

Talking to the Customs Today, Mr Qurban said that manual checking of the export and import consignments was most effective than the mechanical system as accused often adopt tricks to deceive the technology to smuggle narcotics.

The anti-smuggling drive of Model Collectorate of Customs Sialkot has been continued with success as per the guidelines given by the Collector Customs Sialkot.

The efforts of Sialkot MCC have been resulting into many success stories and customs ofMicials has seized narcotics worth millions of

rupees being smuggled from Sialkot GPO through the parcels.

Customs authorities had deputed Deputy Superintendent Ashiq Hussain Shehzad, Inspector Syed Arshad Kamal and Sepoy Muhammad Yaseen at Customs International Mail OfMice GPO Sialkot to curb menace of narcotics smuggling.

It was very optimistic that Customs authorities thwarted all 21 major attempts of smuggling nar-

cotics from Sialkot General Post OfMice (GPO) during the last ten years, showing the great vigilance and efMiciency. Recently, Pakistan customs had seized 550 grams of Mine quality heroin, secretly packed in steal dental scalars and 3.7 kg in a parcel at Sialkot GPO destined for Canada and Peshawar respectively. Customs authorities lodged FIR against culprits arresting four of them at spot.

50 percent increase in FED rates irks air passengers PESHAWAR

NADeR KHAN

www.customstoday.com BR has enhanced Federal Excise Duty (FED) rates by 50% replacing the fixed FED rates with already existing standard rate of 16 percent on tickets issued to passengers travelling aboard. National and domestic travelers flared at FBR after the decision of increase in FED on domestic and international flights.

The decision has arrived after the FBR efforts to meet the revenue target for FY 201415 set by Finance Ministry. The decision would boost the fares of national and international flights further.

As per the FBR source the Federal Excise duty of international flights increased from Rs6840 to Rs10, 000 for business class while for economy class travelers the increase will be from Rs3840 to Rs 5000.

Earlier, through SRO 47(I)/2012, for passengers boarding to or from Saarc countries, UAE, Middle East; Saudi Arabia, Africa, Afghanistan, the rate of FED was Rs 3,840 for economy and economy plus classes and Rs 4,340 for club, business and first classes.

Moreover, for passengers travelling to or from Europe, Far East, China, United State of America, Canada, Australia, South America and others, the rate of excise duty was Rs 5,340 for economy and economy plus classes and Rs 6,840 for club, business and first classes.

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www.customstoday.com

12

JULY 22 - JULY 28, 2014

KARACHI

SoHAIL RAB KHAN www.customstoday.com

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he Collectorate of Customs Adjudication has returned all 50 contravention reports (CRs) made by the Model Customs Collectorate of Appraisement-West on mis-declaration of imported fabric consignments and asked to re-

view them as they possibly missing legal formalities.

Reliable sources in FBR, on condition of anonymity, informed Customs Today that the Collectorate of Customs Adjudication has returned all the CRs to MCC-AppraisementWest due to procedural errors.

It further informed that the contravention reports made by MCCAppraisement-West have lack of legal formalities, legal sections and sub-sections under Customs Act, 1969.

— Exclusive Customs Today photo

Customs Adjudication asks Appraisement-West to review Contravention Reports “Clauses which were not appropriate in mis-declaration of the imported consignments have been inducted in the contravention reports, adding that the legal format was also missing in the contravention reports”, it added.

The sources further claimed that the MCC Appraisement-West following the directives of Chief Collector Appraisement-South has made the contravention reports in a hurry and sent to the Collectorate of Customs Adjudication. However; the

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

Collectorate sent those back to MCC Appraisement-West for correction.

It is pertinent to mention here that the MCC-Appraisement-West after conMirming mis-declaration in import of fabric on the name of cotton blended have made more than 50 CRs by the end of June, 2014 against the importers who were involved in the said matter.

However; the Collectorate of Customs Adjudication has sent back all the CRs for correction to the MCC Appraisement-West.