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pAKIStAN’S FIrSt INDeptH NewSpAper oN CUStoMS
vol 2 Issue No. 47
Karachi, tue Dec 09 - Mon Dec 15, 2014
weekly
regd. No, MC-1381
SHowING GrowtH
FBR collected Rs 900 billion in first five months of fiscal year 2014-15, showing marginal growth of 14% over last year. | See pAGe 02 | SwellING reveNUe
DG has issued orders for computerisation of entire system ISLAMABAD/KARACHI
MUHAMMAD FAIZAN www.customstoday.com
T Enforcement-South Chief Collector Nazim Saleem asked collectorates concerned to speed up revenue . | See pAGe 03 | CroSSING tArGet
he Directorate of Customs Intelligence and Investigation has decided to computerise the entire system. Customs Intelligence and Investigation Director General Lutfullah has issued orders to ofMicials concerned to design the Competence Intelligence Monitoring System (CISM). A workshop was held to introduce the system. Lahore Customs Intelligence Additional Director Rizwan Basharat gave presentation on the oc-
Appraisement-West collected Rs 16.30 billion in Nov against Rs 16.21 billion target with an increase of Rs 87.03 million. | See pAGe 09 |
casion. MCC Additional Collector Abdul Waheed Marwat, Gilgit Baltistan Additional Collector Sadiqullah Khan, Rawalpindi Customs Intelligence Deputy Director Shahid Jaan, Islamabad MCC Assistant Collector Yawar Nawaz and Customs Intelligence Assistant Collector Khuldoonul Haq attended the meeting. The system will be internally used for the record of seizures, FIRs and pending cases. Every ofMicial will have his own account with a password. An automatic message will be generated for the ofMicials concerned before three days if there is a case related to them in the court. The whole record of cases will be available in the software. Workshops will be conducted to train the ofMicials of the Customs Intelligence and Investigation. Meanwhile, Karachi Customs Intelligence and Investigation Director Asif Marghoob Siddiqui has decided to launch a grand operation against illegal petrol pumps in Hyderabad and Sukkur. Talking to Customs Today, he said that the department, in close liaison with the district administration
BArrING Govt
Karachi Customs Intelligence Director Asif Marghoob Siddiqui has decided to launch grand operation against illegal petrol pumps in Hyderabad and Sukkur
RCCI President Syed Asad Mashhadi says political impasse has barred government from improving economy. | See pAGe 06 | — Exclusive Customs Today photo
and law enforcers, would launch operations. He added that EnforcementSouth Chief Collector Nazim Saleem has written letters to the collectors of Hyderabad and Sukkur to evolve a strategy in this regard. “The anti-smuggling actions need further improvement,” he said, adding that the Customs Intelligence and Investigation DG Luftullah Virk is determined to uproot smuggling from the country.
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DECEMBER 09 - DECEMBER 15, 2014
Sale of motorcycles down 65 percent in four months
KARACHI: Sale of motorcycles has seen a 65 percent decrease in the last four months, due to which the government has also faced huge revenue loss. Devaluation of rupee against dollar is threatening the automobile industry. Karachi Motorcycle Dealers Association President Muhammad Ehsan said as many as 4,000 Unique motorcycles were sold across the country per annum. He said around 4,500 super power motorcycles were sold every year, 1,700 super star motorcycles, high speed 250, Honda local 200, Union Star 600, Race 150 and Bionic 150.
token tax non-payment
Rawalpindi Excise captures 80 unregistered vehicles heTaxation department and Rawalpindi Excise has impound 80 vehicles and motorcycles in an process launched against token tax nonpayers and unregistered vehicles in the city. Most of the impounded vehicles owners had defaulted on payment of life time token tax, token tax while others did not have proper registration documents. The special operation was launched on the directives of Secretary Excise andTaxation Punjab Khalid Masood Chaudhary and Director Excise Jam Siraj Ahmed. According to an Excise andTaxation spokesman, five teams were constituted in this regard. Excise andTaxation Officer (ETO) Nazia Javed were supervising the operation while senior Inspectors including Malik Muhammad Maskeen, Malik MuhammadYounas, Amir Butt, Saleem Butt, Khalid Saeed Mirza and others conducted crackdown against the defaulters in different areas including Morgah, Civil Lines, Gawalmandi, Sawan Camp, Rawalpindi city and Cantonment areas. Over 500 vehicles and motorcycles were checked during the operation. A number of vehicles were issued challan slips.The vehicles running on city roads with cancelled registration numbers were also being impounded. The teams tasked with the checking duty were directed to take strict action in accordance with the law against the rules violators. Unregistered vehicles were also impounded. —CT Report
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Wahga LFU collects Rs 370m taxes in Nov LAHORE
MAHMooD IDreeS www.customstoday.com
he Model Customs Collectorate (MCC) Land Freight Unit (LFU) Wahga border has collected almost Rs 370 million taxes on imports during November of the current fiscal year. According to details, the Pakistan Customs generated Rs 182 million income tax during November, while Rs 4 million has been collected as additional sales tax on the import from India. Similarly, the customs collected Rs 73 million sales tax and Rs 111 million duty tax. Pakistani importers imported tomatoes, garlic, vegetables, ginger, oil, polyethylene, cotton yarn and machinery during November. Customs officials at Wahga said,“We tried to expedite the clearance process and to facilitate the traders as much as possible as they pay taxes to national exchequer.” They hoped that the Lahore MCC would attain the revenue target for the fiscal year 2014-15.
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FBr collects rs900b in 5 months, shows 14pc growth Official says general sales tax witnessed decline in November 2014 because of decline in oil prices in domestic market ISLAMABAD
CUStoMS toDAY report www.customstoday.com
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he Federal Board of Revenue faced a shortfall of Rs73 billion in revenue collection during the Mirst Mive months (JulyNov) of this Miscal year 2014-15. The collection stood at Rs900bn against the target of Rs973bn. However, it recorded a marginal growth of 14 per cent over the last year’s collection of Rs789bn. The growth in revenue collection was the outcome of the withholding taxation measures introduced in the budget 2014-15. The payment of refund/rebate rose to Rs34bn during the period under review against Rs27bn in the corresponding period last year. The government for this Miscal year has projected a revenue collection target of Rs2.81 trillion, 24pc higher than Rs2.266tr collected in the preceding year. Last year, the target was revised four times owing to dismal performance of the tax department. OfMicial Migures available with media show that FBR is facing problems in tax compliance as well as achieving revenue collection target for respective months. Until November 25, only 560,000 people have Miled income tax returns (e-Miling and manual) in the tax year 2014, as against 835,000 returns Miled last year, showing a decline of 32.94pc. In other words, 275,000 people, who Miled their returns last year have not yet Miled their returns. On monthly basis, a shortfall of
FBr Chairman tariq Bajwa
The customs duty collection reached Rs107bn during the period under review as against Rs88bn over the corresponding period of last year
FBR’s LTU Karachi collects Rs 725b in 5 years ISLAMABAD
MUHAMMAD ArSHAD
T
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he regional office, Large Taxpayer Unit Karachi (LTU) of Federal Board of Revenue (FBR) at Karachi has shown consistent upward trend of volume of revenue collection in last five year, showed official documents available with Customs Today. LTU collected revenue of Rs 725 billion in 2009-10, Rs 855 billion in 2010-11, Rs 1027 billion in 2011-12, Rs 1,068 billion and Rs 1,198 in 2013-14. The document revealed that this share of revenue remained as Customs duty Rs128 billion, Rs147 billion, Rs 174 billion, Rs 184 billion and Rs 193 billion in last five years from 2009 to 2014, Sales Tax remained as Rs 300 billion, Rs 377 billion, Rs 478 billion, Rs 491 billion and Rs 570 billion during same years. “Moreover, Federal Excise remained as Rs
Revenue collection higher in Karachi because of taxation at import stage and head offices of companies
58 billion, Rs 64 billion, Rs 51 billion, Rs 45 billion and Rs 52 billion in last five years as well as Direct Taxes was Rs 239 billion, Rs 267 billion, Rs 324 billion, Rs 348 billion and Rs 383 billion,” the document stated. When asked about the reason for this consistent performance, a source at FBR told this scribe here that it was impossible to determine the exact amount of taxes generated from a particular collection point or city because FBR collected all federal taxes across the country. “However, revenue collection has been higher from Karachi because of taxation at import stage and location of head offices of many companies in Karachi, Therefore, these may, or may not, pertain to taxes generated at Karachi,” the source said adding that The source observed that economic activities were carried out all over the country therefore it was not possible to determine the exact amount of taxes generated at a particular collection point or city.
Rs18.90bn was witnessed alone in the month of November 2014 as revenue collection stood at Rs175.101bn as against the target of Rs194bn. However, the collection grew by 15pc over the collection of Rs151.712bn in November 2013. The government has asked the tax department to increase tax base by 50pc by bringing around 1.25 million more people under the tax roll. However, this target was missed largely with a wide margin. At the same time, it has also projected to increase the tax-to-GDP ratio to 10.2pc but it remained at 9.3pc. A tax ofMicial said the general sales tax (GST) witnessed decline in November 2014 because of decline in oil prices in domestic market. “We have not predicted this massive decline in oil prices while projecting revenue collection target,” the ofMicial said. More decline in the GST from the oil sector is expected in December 2014 because of the proposed slash in oil prices, the tax ofMicer added. Tax wise break-up showed income tax collection witnessed a growth of 23.69pc to Rs329bn in July-November 2014 as against Rs266bn in the same period last year. The sales tax collection also rose by 8.65pc to Rs440bn against Rs405bn collected in the same period last year. The customs duty collection reached Rs107bn during the period under review as against Rs88bn over the corresponding period of last year, an increase of 21.59pc. However, the federal excise duty collection remained stagnant at Rs58bn against Rs56bn, reMlecting dismal performance despite increase in excise rate for beverages and cigarettes.
CC Mansur vows to resolve issues of Gujranwala traders SIALKOT
ZAFAr MAlIK
www.customstoday.com ujranwala Inland Revenue Chief Commissioner Mansur Ahmed Bajwa has assured the business community to resolve their tax-related issues. Bajwa said efforts were being made to resolve the issued by taking the Gujranwala business community into confidence. He said this while addressing a meeting of businessmen at the Gujranwala Chamber of Commerce and Industry (GCCI). GCCI President Khawaja Khalid Hassan presided over the meeting.The chief commissioner said that Gujranwala businessmen have been playing a pivotal role in the national economy.
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DECEMBER 09 - DECEMBER 15, 2014
Customs await FBr approval to take hold of Special economic Zones
ISLAMABAD: Following directions of the Board of Investment, the FBR is all set to bring a main amendment in the Special Economic Zone Act which will put the Zone within the customs territory of Pakistan. After the amendment in the Special Economic Zone Act, Customs rules and Regulations would be binding on the units operating in the SEZ. A meeting was held recently which allowed amendments in Special Economic Zone Act. Afterwards, the FBR geared up efforts to bring amendments. The FBR high-ups showed their willingness to amend Articles 36 and 37.
Handicraft producers seek FBR help to get manufacturer status
Nazim urges collectors to expedite revenue collection
MAHMOOD IDREES
Enforcement-South has collected Rs 1.67 billion customs duty against Rs 1.79b target in November
CUStoMS toDAY report www.customstoday.com
KARACHI
SoHAIl rAB KHAN www.customstoday.com
E anufacturers have requested the Federal Board of Revenue (FBR) to help them get manufacturer status. On the other hand, FBR officials have said that industrial electricity connection was a must to get the status. A tax consultant told Customs Today that there were manufacturers who manufacture different products like handmade carpets and rugs, but they could not get the status of manufacturer due to not having the industrial electricity connection. He added that a person who produces handmade products does not need industrial electricity connection as he does not use boiler or heavy machinery. He said:“We have commercial electricity connections but they are not accepted. The FBR should entertain manufactures who play a key role in boosting of national exports.” On the other hand, an FBR official said that rules made industrial electricity connections essential for manufacturers to enjoy the manufacturer status.
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nforcement-South Chief Collector Nazim Saleem asked all the collectorates which fall under him to speed up the revenue collection in terms of customs duty with a view to attain the revenue target set by the Federal Board of Revenue (FBR), sources informed Customs Today. In November, the EnforcementSouth collected customs duty worth Rs 1.67 billion in November against its set target of Rs 1.79 billion, falling short of Rs 114.80 million in revenue target. The Enforcement-South consists of the Model Customs Collectorates (MCC) of Preventive, Hyderabad, Exports, Exports (Port Qasim), Quetta and Gwadar. According to details, the MCCPreventive has collected Rs 1134.21 million in term of customs duty in the month of November-2014 against its set target of Rs 1130.53 million with an increase of Rs 3.68million. The MCC-Hyderabad collected Rs 262.94 million customs duty in November against its set target of Rs 524.66 million with a shortfall of Rs 261.72 million. The MCC-Export collected Rs 481.01 million customs duty in November against the set target of Rs 433.45 million with an increase of Rs 47.56 million. The Export (Port Qasim) col-
— Exclusive Customs Today photo
lected an amount of Rs 22.14million in the month of Nov-2014 in share of customs duty against its set target of Rs367.27million with a decrease of Rs 345.13million. Furthermore, the MCC-Quetta collected Rs 51.42 million customs duty in November against its set target of Rs 48.55 million with an increase of Rs 2.87 million. Meanwhile, the MCC-Gwadar collected Rs 91.41 million customs duty in November against a set target of Rs 20.74 million with an increase of Rs 70.67 million. Sources informed Customs To-
Chief Collector Nazim Saleem
day that Enforcement-South Chief Collector Nazim Saleem asked the authorities concerned of all the collectorates to speed up the revenue collection in terms of customs duty with a view to attain the revenue target set by the Federal Board of Revenue (FBR). Separately, the Air-Freight Unit (AFU) of the Model Customs Collectorate Preventive has collected total revenue of Rs 2.44 billion under the heads of customs duty, sales tax (ST), additional sales tax and withholding tax in November. According to statistics, the AFU
has collected Rs 710.15 million customs duty, recovered a revenue of Rs 980.28 million sales tax, attained a revenue of Rs 62.66 million additional sales tax and collected Rs 694.18 million withholding tax. Enforcement-South Chief Collector Muhammad Nazim Saleem and Preventive Collector Syed Muhammad Tariq Huda have expressed satisfaction over the revenue collection. Nazim and Tariq have lauded the efforts of Additional Collector Dr Tahir Qureshi and other customs staff at AFU for collecting the smart revenue during November.
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DECEMBER 09 - DECEMBER 15, 2014
FBr calls meeting of regional tax offices
KARACHI: The Federal Board of Revenue (FBR) has decided to call a meeting of Regional Tax Offices and textile association representatives.Federal Textile Minister Senator Abbas Khan Afridi had taken notice to remove the reservations of the textile associations regarding taxes on imports. The board has decided to adjust income tax on new investments and to resolve refund issues. The meeting is expected in the coming week.
Appraisement-east collects rs 17.63b against C target of rs 18.05b
Collector Memon hears tax evasion case against Siddiq sons
Collector Najeeb has asked authorities concerned to make arrangements to attain revenue target by end of third quarter KARACHI
SYeD MUHAMMAD ASlAM www.customstoday.com
pCtclassifies goodsdeclaredas polyesterpilefabrics he PCT Committee of the Model Customs Collectorate of Appraisement-East has concluded that the goods declared as“Polyester Pile Fabrics”is appropriately classifiable under PCT heading 5801.9000 in terms of General Rules for Interpretation. The Additional Collector of Customs, MCC of Appraisement-West had referred a case to the PCT Committee vide letter C.NO SI/Misc/31/2013-IV dated December 28, 2013 titled “Classification of goods declared as Polyester Pile Fabric”. According to the letter, M/S Sunrise International imported a consignment of Pile Fabrics vide GD No.KAPW-HC53661 Dated November 1, 2013. The consignment was declared as Polyester Blanket size double bed 2 ply (packing 426 bales x 36 pieces, 1 bale x 20 pieces and 10 cartons x 6 pieces) declaring HS Code 6301.4000 @ 10% Customs Duty & taxes. —CT Report
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AFU collects Rs 2.44b in November he Air-Freight Unit (AFU) of the Model Customs Collectorate (MCC) Preventive has collected total revenue of Rs 2.44 billion under the heads of customs duty, sales tax (ST), additional sales tax and withholding tax in November. According to statistics, the AFU has collected Rs 710.15 million customs duty, recovered a revenue of Rs 980.28 million sales tax, attained a revenue of Rs 62.66 million additional sales tax and collected Rs 694.18 million withholding tax. Enforcement-South Chief Collector Muhammad Nazim Saleem and Preventive Collector Syed Muhammad Tariq Huda have expressed satisfaction over the revenue collection. Nazim andTariq have lauded the efforts of Additional Collector DrTahir Qureshi and other customs staff at AFU for collecting the smart revenue during November. —CT Report
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he Model Customs Collectorate-MCC of Appraisement (East) has collected an overall revenue of Rs Rs 17.63 billion in November,2014 against the set target of Rs 18.05 billion with a slight shortfall of Rs 416.06million in share of different heads including Customs Duty (CD), Sales Tax (ST), Federal Excise Duty (FED) and Withholding Tax (WHT). The MCC-Appraisement-East collected overall revenue of Rs 17.63 billion in November against its target of Rs 18.05 billion with a slight shortfall of Rs 416.06 million in terms of its set revenue target. As per the revenue statistics, the MCC-Appraisement (East) collected Rs 4938.12 million in share of customs duty against its target of Rs 4.78 billion with an increase of Rs 150.90 million. The Appraisement-East collected revenue of Rs 9.6 billion in share of Sales Tax against its set target of Rs 10.22 billion with a shortfall of Rs 555.08 million. Similarly, the MCCAppraisement (East) collected revenue of Rs 109.85 million in share of FED in the month of Nov against its set target of Rs 64.27 million with a major increase of Rs 45.58 million. The MCC-Appraisement-East collected revenue of Rs 2.91 billion in
Collector Najeebur rehman Abbasi
Appraisement-East collects Rs 2.91 billion withholding tax in November against target of Rs 2.94 billion with Rs 57.42m shortfall
share of withholding tax (WHT) in the month of November 2014 against its set target of Rs 2.94 billion with a shortfall of Rs 57.42 million. The Collector of MCC-Appraisement (East) Najeebur Rehman Abbasi has asked the authorities concerned of the collectorate to ensure arrangements in order to attain revenue target by the end of third quarter of the Miscal year 2014-15.
ollector of the Collectorate of Customs Adjudication-II Dr Ahmed Mujtaba Memon held the hearing of tax evasion case against Siddiq sons Limited on Tuesday. The case has been filed by the Research and Development (R&D) Section of MCC-Appraisement (East) against M/s Siddiq sons Limited in its alleged involvement in tax evasion tune to Rs20million in terms of Customs Duty (CD), Sales Tax (ST) and Income Tax (IT). The Research and Development (R&D) Section of Model Customs Collectorate of Appraisement (East) has made the Contravention Report (CR) against the importer Siddiq sons Ltd on October 5,2014 in its alleged involvement in tax evasion of Rs20,343,390. Subsequently, the collectorate has served show-cause against the importer Siddiq sons (Ltd) by the end of October. It is pertinent to mention here that the R&D officials under the supervision of the Collector, MCC-Appraisement (East) Najeebur Rehman Abbasi detected a case of tax evasion against the importer Siddiq sons in which the importer tried to import and cleared air covered yarn of PCT heading 5402.6200, chargeable to CD @10 percent ad-valorem cleared in the garb of spandex/lycra under PCT heading 5402.4410 chargeable to Customs Duty @ zero per cent (now 1per cent in the current budget). In the Contravention Report, the R&D Section found that the importer M/s Siddiq sons has violated the Sections 20, 26, 32(1), 32(2), 32(3)A, 32A, 79 and 80 of the Customs Act, 1969 punishable under Clauses 10A, 12, 14, 14A and 43 of the Section 156(1) of the Customs Act, 1969 read with Section 36 of the Sales Tax Act, 1990 punishable under Section 33 of the Sales Tax, 1990 and read with Section 148 of Income Tax Ordinance 2001. —CT Report
Lahore MCC Preventive transfers 106 inspectors
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LAHORE
M HAYAt
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he Model Collectorate of Customs of Preventive has reshufMled 106 inspectors at headquarters, Land Freight Unit Wahga, railway stations. The inspectors reshufMled are from various sections, including administrative branch, chief collector of customs ofMice, Customs House, general branch, general staff, investigation and prosecution, project branch, state warehouse, PFC Wahga, railway station Wahga, railways station T-10 and anti-smuggling. The transferred inspectors are: M Yasin in administrative branch, Abdul Ghafar Amjad Khan, Farooq Aslam, Manzoor Bajwa, Aslam Iqbal, Nadeem Ahsan, Sana
Sadiq, Shahid Bukhtiar, Tariq Baig in Anti-Smuggling Organization (ASO), Imdad Ali, Nasrulah Khan, Mughale-Azam and Tausif Mughal at chief accountant’s ofMice. The collectorate also transferred and posted inspectors, including Nadeem Mehmood, Ijaz Ahmad, Sadique Akhtar at chief collector ofMice, Customs House ofMice and general branch. Similarly, the collectorate reshufMled AD Sarfaraz, Shahnawaz Langrial, Manzoor Ahmad, Amin Sukhra, Farooq Anjum, Fayyaz Allah Rakha, Habib Mayo, Safdar Abbas, Mian Bashir, Sheikh Mudasar, Syed Ali Abbas, Tanveer Hussain Shah at general staff. The collectorate transferred and posted Abdul Qayum, Ghulam Nasir, Usman Azad, saleem Ahmad, Babar Rehman, Baqir Ali, Shahid Farooq, Shozab Raza, Tariq Usmani, Waheed
Iqbal Waheed Khalid, Zeba Naz at I&P, State warehouse and project branch. Inspector at the LFU have also been transferred and posted. The inspectors included Abdul Rasheed, Abdul Waheed, Abrar Hussain, Anwar Baig, Asfaq Ahmad, Asif Sohail, Danish Kaleem, Ghulam Hussain, Ghulam rasoor, HaMiz Mubashir, Iftikhar Hussan, Iqbal Baig, Irfan Mumtaz,Javaid Iqbal, Javaid Iqbal Goraya, Khalid Pervaiz, Khalid Ahmad, Khalid Rasheed, mehmood Ahmad, Mehmood Tippu, Malik Asraf, Mansab Shah, Afazl, Arif Mayo, Naeem, Nadeem Saleemi, Mansoor Elahi,Sajjad Jatoi, Sakandar Idress Bajwa, Rehan Iqbal, Sajjid Hussain, Tippu Sultan and Zahid Ali. In the same way, inspectors at PFC Wagha have also been transferred and posted. The inspectors
included Attiq Ahmad, Farhat javaid, Gazanfar Abbas, Manzar Muzaffar, Masood Kamal, Shahid Khan and Athar Hussain. Likewise, Inspectors have been reshufMled at Railways Sation Wagha which included Babar Yousaf, Bushra Bano, Ghulam Muhammad Gulzar Hussain, HaMiz Akram, HaMiz Illyas, Mehmood Zahoor, Maharul Haq, Mazhar Baig, Aslam Shahid, ishaq Jilal, saeed Muhammad and others. The inspectors who were reshashufMled included Abdul Hameed, Atta Ur Rehman, Iftikhar Ahmad, Irfan Ullah, Khalid Saddiqui, Youns Bhatti, Munir Ahmad Munir Ahmad Niazi, Saifullah, Taj Din, Rashid Munir and Riffat Ali. Sources in the collectorate said that the transfers and posting have been undertaken on routine.
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ISLAMABAD
MUHAMMAD ArSHAD www.customstoday.com
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he government has failed in improving national economy due to the prevailing political impasse, said Rawalpindi Chamber of Commerce and Industry (RCCI) President Syed Asad Mashhadi. Speaking to Customs Today, the RCCI officebearer said besides political turmoil other factors, including deteriorating law and order also significantly contributed in this regard. He said that sales tax rate should be reduced to 3% from 5% and it must be implemented on all sectors without any discrimination. “Strict tax laws are producing counterproductive results, because they are being used as a tool by the tax officials to harass the businessmen and business community, instead of widening the tax net or increasing the volume of revenue collection,” he added. Mashhadi said,“SRO-608 and others of this nature are casting worst impacts on morale of taxpayers,business activities as well as foreign direct investment. Therefore, we have urged the government to repeal or abolish the said SRO.” “We convened a meeting of the presidents of all chambers of commerce and industry to raise our voice against this SRO and the Punjab government moved a step forward and invited us to hold a meeting in Lahore. We held very good meeting in Lahore on November 26,where PMLN Member National Assembly Hamza Shahbaz promised to take notice of our grievances and to take up them with Finance Minister Ishaq Dar on his arrival back from Russia,” Mashhadi added. Referring to the era of former Federal Board of Revenue (FBR) chairman Abdullah Yousaf, the RCCI president said that Yousaf’s initiatives for taxpayers’ facilitation brought about positive results and consequently the volume of revenue collection touched the figure of Rs 12 billion from Rs 4 billion.Yousaf took relaxing initiatives for taxpayers,which not only facilitated the taxpayers, but also improved the image of the tax department, he added. He observed that the government had taken a good initiative by forming the Tax Reforms Commission (TRC) for reforms in tax system. Hopefully, the TRC would give good recommendations in this regard, he said, adding, “We are working on finalization of our recommendations to present in the upcoming meeting of TRC.” To a question about problems confronted by business community in the twin cities, Is-
lamabad and Rawalpindi,he said that a sense of insecurity was prevalent among the traders and businessmen, because leading ones had received “extortion letters”. So far more than 12 businessmen have received such letters from extortionists. “We brought the issue in the notice of CPO Hamayun Tarar who made adequate measures and busted a few gangs which posed threats to businessmen in the name of Taliban.Hopefully, remaining criminal gangs active in Rawalpindi will also be busted with coercive efforts of the law enforcing agencies.” Mashhadi proposed that payment of sales tax refund should be stopped to all businessmen without any discrimination until the national kitty would be filled enough to make the country self-reliant. To a question about execution of corporate social responsibilities (CSRs) by RCCI, he said that being an active CSR advocate, health and education programmes had been devised for the well-being of the underprivileged and deserving segments of the society. He said the RCCI was focusing on health and education and would take control of a technical training institution situated on Murree Road, Rawalpindi soon. Students will be provided with state-ofthe-art educational and training facilities at the institution which will improve their expertise and also produce skilled labour. “Similarly, the RCCI is also considering to take charge of the affairs of a major hospital in Rawalpindi.Presently, two hospitals are under consideration; Cantonment Board Hospital and DHQ Hospital,” he said. To a question about RCCI’s strategic goals for fiscal year 2014-15,he said that the goals included ongoing projects and new initiatives towards regional integration, promotion of nonconventional products in non-traditional markets,urging the government for better business conditions, capacity building of members through trainings/seminars/workshops, initiating youth and women empowerment projects, enhancing interaction with foreign missions in Pakistan and Pakistani missions abroad to improve bilateral trade, liaison with foreign agencies and international organizations to generate trade leads and create more business opportunities and providing value added services to the members. RCCI is committed to business development of its members through networking, policy advocacy and innovation and to promote the national economic growth, Mashhadi concluded.
ng o m a t n e l a v e r p y is t i r u c e s n i ers f d o a r e t s n p o t Se 2 1 s a , s itie c n i w t f o n e m s s busine ’ s r e t t e l n o i t r o t have received ‘ex
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08 EDITORIAL
DECEMBER 09 - DECEMBER 15, 2014
Founder & Chairman Zulfiqar Ali Editor rahil Yasin editor@customstoday.com.pk For advertising & subscription marketing@customstoday.com.pk +92-300-4009261 www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
eDItorIAl
web-based customs ccording to sources, the Pakistan Customs has decided to install WebBased One Customs (WEBOC) at 17 border posts of the country to stop irregularities of billions of rupees in the international trade. It is noted that the national exchequer is being subjected to colossal losses because of underinvoicing, duty evasionand fake documentation. To avoid this kind of practice, preparations are underway to launch a pilot project at Wahga border while the system is likely to be enforced in all over the country from next year. On the direction of the Federal Board of Revenue, the customs had started the programme to gradually wind up the traditional taxation system which is prevailing to deal with trade through land, air and sea routes and enforce WEBOC system. Currently, at least 93 percent official work at the Karachiair and sea ports is being carried out under WEBOC while the system was started at the Lahore Airport four months ago and the ratio of WEBOC use has increased from 57 percent to 77 percent. According to sources, trade with China, Afghanistan, Iran and India through land route is causing billions of rupees losses to the national exchequer because of the use of traditional system. Earlier, thousands of containers had been disappeared as it is probably easy for the tax evaders to dodge the customs by filing bogus documentation. However, the enforcement of WEBOCwill stop this kind of irregularities. On another note, the Inland Revenue tribunal of the FBR has started computerising the official record to facilitate the litigants. Steps are being taken to dispose of the cases as soon as possible by establishing tribunals at district level. There is a need to establish special taxation courts while tax refund cases also need to be speeded up. Unfortunately, there are elements within the business community who do not hesitate to exploit SROs and other customs rules and regulations to avoid taxes and duties on import and export of goods. There are some businesses which only survive on tax evasions and illegal rebate claims and this kind of practice needs to be discouraged at all levels.
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Curse of corruption LAHORE
Dr AFtAB AFZAl
A
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ccording to the Pakistani chapter of the Transparency International, public sector corruption has shown a declining trendin Pakistanas the country has achieved a score of 29 out of 100, improving its rankingin the Corruption Perception Index (CPI)to 126th among 175 countries. The CPI 100 means no corruption and the country having this ranking is perceived to be very clean. Pakistan was given a score of 28 in 2013and was ranked 127th among 177 countries. Corruption is the world phenomenon, which not only prevails in the most developed economies, but also regarded as a big hurdle in the growth of developing economies. The anti-corruption group says that corruption is affecting all economies, whether they are of the European Union or the United States, butthe
world will have to go in unison to get away with it. In its 20th edition of the Corruption Perceptions Index, China stands at 36th out of 100, Turkey at 45th and Angola at 19th,losing 4 or 5 points of their ranking despite achieving average economic growth of more than four percent over the last four years. José Ugaz, the chief of Transparency International, says that senior government officials abuse the power of their offices and use public funds for personal gains, whichnot only undermines the economic growth, but also anti-corruption efforts. The corrupt officials shift their illegalmoney to safe havens by means of transactions for the offshore companies. The countries need to bring radical changes in their anti-corruption efforts and those, which perceived to be very clean, should ensure not to export corrupt practices to underdeveloped countries. Various reports suggest that trillions of dollars illegal money, belonging to the Pakistani nation, has been
western powers should stop the policy of double standards as most of the corrupt officials in the third world countries find safe havens for their money in foreign banks
transferred to Swiss banks and international efforts are required to stop this practice. An effective international law and mechanism should be devised to curb money laundering which -more or less -- prevails in every country of the world. Mere lip-service will serve no good to any nation. The Transparency International is doing its part of the job and is creating awareness about corrupt practices, but it is the duty of the governments to ensure transparency in official domains and the corporate sector entities. The western powers should also stop the policy of double standards as most of the corrupt officials in the third world countries find safe havens for their money in foreign banks. The world institutions should check this kind of practice going on under their nose, keeping in view the dissolution of Bank of Credit and Commerce back in 90s. The bank had emerged as a dominant Minancial power across Asia, but died its death on the charges of money laundering.
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NATIONAL 09
DECEMBER 09 - DECEMBER 15, 2014
Deputy Collector Aitzaz exonerated from allegations
ISLAMABAD: The Federal Board of Revenue (FBR) has exonerated Dr Muhammad Aitazaz Khan (PCS/BS-18) from the charges levelled against him. The Board issued exoneration notification after the disciplinary proceedings under Government Servant (Efficiency & Discipline) Rule, 1973 against the officer, who is presently posted as Deputy Collector, Model Customs Collectorate of Appraisement, Lahore.
Customs Adjudication-I decides to issue notices to SRO-1125 violators
Appraisement-west collects rs16.30b in Nov, crosses target
KARACHI
Collectorate liquidates bank guarantee worth Rs 54.27 million against Pak Suzuki Motors Company
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KARACHI
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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
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he Model Customs Collectorate (MCC) of Appraisement-West has collected Rs 16.30 billion revenue in November under the heads of customs duty, sales tax, federal excise duty (FED) and income tax. According to details, the Appraisement-West has collected Rs 16.30 billion in November against its set target of Rs 16.21 billion with an increase of Rs 87.03 million. As per the revenue statistics, the Appraisement-West collected Rs 5751.42 million customs duty against target of Rs 6336.51 million with a shortfall of Rs 585.09million. The Appraisement-West collected Rs 7436.21 million sales tax in November against target of Rs 6872.81 million with an increase of Rs 563.40million. Similarly, the AppraisementWest collected Rs122.27 million FED in November against target of Rs 134.13 million with a shortfall of Rs 11.86 million. The Appraisement-West collected Rs 2990.43 million income tax in November against target of Rs 2869.85 million with an increase of Rs 120.58 million. The authorities concerned of
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he Karachi Collectorate of Customs Adjudication-I has decided to issue show-cause notices to fabric yarn importers for their alleged involvement in violation of SRO-1125/2013, it is learnt through reliable sources. The sources informed Customs Today that around 14 notices have been finalised by the authorities concerned and would be issued to the importers in the next week. The Model Customs Collectorate Appraisement-West had registered 50 cases and made contravention reports against the importers guilty of violating SRO-1125/2013 in importing fabric yarn on manufacturing licences. Although, the Directorate of Customs Intelligence and Investigation-FBR, Karachi has lodged seven first information reports against the fabric importers and made around 10 contravention reports in this regard. The Collectorate of Customs Adjudication-I has already issued around 35 show-cause notices against the importers for their involvement in violation of SRO-1125/2013 while more show-cause notices are likely to be issued. Reportedly, several fabric yarn importers evaded million of rupees taxes by misusing SRO-1125/2013. The Customs Adjudication-I has so far not issued any Order-in-Original (ONO) against these importers.
CUStoMS toDAY report
Collector Muhammad Saleem
Appraisement-West have forwarded the revenue collection figures to the Federal Board of Revenue Headquarters. Appraisement-West Collector Muhammad Saleem has directed the authorities concerned of the collectorate to ensure proper check on revenue leakages in terms of misdeclaration, underinvoicing and tax-evasion through effective measures. Meanwhile, the AppraisementWest has liquidated/encashed bank guarantee worth Rs 54.27
million against Pak Suzuki Motors Company in the Special Customs Appeal Court No 25 through Bond No 38617, it is learnt. Sources informed Customs Today that the Sindh High Court (SHC) nazir issued the order to encash the bank guarantee against Pak Suzuki Motors Company Limited. Sources also said the authorities concerned of the collectorate have taken the step while following the orders of AppraisementWest Collector Muhammad Saleem. The Pak Suzuki Motors
Company Limited has already taken a stay order from the court in this regard. The SHC has already refused to entertain the company and dismissed its application on legal grounds. The Appraisement-West had demanded additional Rs 55 million from the company for importing auto parts in excess and claiming undue tax exemption under the government’s deletion programme. Later, the Suzuki Motor Company approached the Customs, Excise and Sales Tax Appellate Tribunal, which dismissed its appeal and eventually the company challenged the judgement in the Sindh High Court. During the hearing, the SHC observed that the company was liable to pay the customs duty on the excess quantity of bearings, which was neither declared and was admittedly beyond the approved deletion programme in respect of such imports. The automobile companies have criticised the deletion programme primarily because of the leniency and inefficiency of Engineering Development Board (EDB) while the programme was introduced by the government to promote indigenisation. The sources said that Collector Saleem has lauded the efforts of the authorities concerned to pursue the case and save the national exchequer.
Appeal to withdraw valuation ruling To,
voice value but their plea remained unheard. The importers are seriously thinking to approach the appropriate court of law because their business is suffering seriously and is near to closure. The FPCCI is trying to resolve the issue through negotiations to pursue the Customs Valuation Department to withdraw the said valuation ruling at the earliest. Dear sir, you are requested to issue necessary instructions to the ofMicials concerned to withdraw Valuation Ruling No. 702/2014 in view of the 40-50 percent reduction in the international prices of raw material used in soap manufacturing.
The Federal Board of Revenue, Member Customs, Nisar Muhammad Khan Respected Sir,
It is brought to your kind notice through this letter to issue orders for the withdrawal of valuation ruling 702/2014 dated November 25 and Mix the valuation price of unbranded soap between $450-500 per metric tonnes instead of $700750 per metric tonnes. Earlier, I had written a letter to you to help the toilet soap importers. It seems as if the Valuation Ruling No.702/2014 has been imposed in the vested interests of certain manufacturers. It seems as if monopolistic tendencies of the manufacturers lobby and the imposition
— Exclusive Customs Today photo
of VR No. 702/2014 are aimed at shutting down toilet soap imports completely. Among other things the
importers had also offered the manufacturers to get the soaps manufactured for them on the current in-
Thanks and regards, Zakaria Usman, FPCCI President, Karachi
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10 NATIONAL
DECEMBER 09 - DECEMBER 15, 2014
excise DG transfers five officials
LAHORE: Excise Director General Ahmad Aziz Tarar has transferred officers in five districts of Punjab. According to a notification, Istefa Haider has been transferred from Mandi Bahauddin to Faisalabad as ETO and Munawar Virk from Faisalabad to Gujrat as ETO. Farukh Bashir Gondal will work as Mandi Bahauddin ETO. Earlier, he was serving in Gujrat. Suhail Akhtar has been made Vehari ETO and Rao Idrees has been appointed as Pakpattan ETO.
Zaki says valuation ruling of toilet soap will discourage legal import Former KCCI president says local producers are meeting 63 percent of demand while import and smuggling are meeting 7-8 percent and 13-14 percent respectively KARACHI
SYeD MUHAMMAD ASlAM www.customstoday.com
— Exclusive Customs Today photo
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he latest valuation ruling of toilet soaps would discourage legal imports and would give rise to smuggling, former Karachi Chamber of Commerce and Industry (KCCI) President A Abdullah Zaki told Customs Today. The recent Valuation Ruling No 702/2014 dated November 25 has given no consideration to the origin of exports of toilet soaps and bracketed brands from various origins under one heading to Mix the customs values. For instance, in the previous valuation ruling the customs values for Yardley brand toilet soap from Europe/UK and UAE origins were assessed separately at $2,200 per metric tonnes and $900 per metric tonnes respectively. However, in the latest valuation ruling the same brand is assessed singly as $ 1.70 per kg of $1,700 per tonnes. Similarly, in the previous valuation ruling, the customs values for Pears transparent toilet soap of UK and UAE/Indonesia origins were assessed at $1,984 per tonnes and $900 per tonnes respectively, but in the recent valuation ruling the same brand is assessed for custom value of 1.30 per kg or $1,300 per tonnes.
“It seems that higher customs values are aimed at discouraging legal toilet soap import into the country or else what could explain not taking into consideration the origin because US/UK/European products, including soaps are subjected to a much higher duty than their counterparts in Asia, Middle East, Far East or any place else,” Zaki said. Zaki, a former vice chairman
Former KCCI president Abdullah Zaki
None of the suggestions made by the toilet soap importers were taken into consideration
of Pakistan Soap Manufacturers Association, alleged that the latest valuation ruling has discouraged the import of new brands of toilet soaps into the country by subjecting “other brands” (meaning the brands in addition to over 5 dozen brands mentioned by name in the ruling) to a high customs values from $0.90, $1 and $1.70 per kg from “other origins”; Middle East/Saudi Arabia/Turkey; and
Zuberi believes tax base can be broadened by carrying out income tax rules T
LAHORE
CUStoMS toDAY report
ax base can be broadened manifold by carrying out income tax rules, former Lahore Tax Bar Association (LTBA) president Qari Habibur Rehman Zuberi told Customs Today. He said every small and big business could be urged to display National Tax Number (NTN) on their premises. It could also be made mandatory for the SECP to receive annual details of the companies along with the NTN number, Zuberi added.
— Exclusive Customs Today photo
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ex-ltBA president Habibur rehman
He believed that tax base could be broadened manifold by ensuring implementation of Section 181C of Income Tax. Zuberi said the section makes it mandatory for every businessman to display his NTN on a visible place. “The FBR ofMicials should come forward to ensure implementation of Section 181C in order to enhance tax base. The implementation of the section will enhance tax base and let the existing taxpayers to heave a sigh of relief,” he stressed. He said that there were above 300 markets in Lahore, including Shah Alam, Rang Mehal, Suha Bazaar, Azam Cloth, Liberty and Ichhra. Each of these markets
consists of more than 300 outlets but none of them have ever displayed their NTN number. Hefty revenue could be collected if the RTO ofMice proactively works on it, he said. “One bridle suit is being sold above Rs 0.1 million at these markets,” he underlined. He said that the government could make law which could bind the SECP not to receive annual details of accounts of any company without the NTN number. He said that the government and FBR must bind the property dealers to deposit a certain percentage to the national kitty on every transfer.
Europe/USA/Canada origins. Zaki said that none of the suggestions made by the toilet soap importers were taken into consideration. The importers had offered the manufacturers to buy the imported consignments at the values which the later suggested were under invoiced. They had also suggested to conduct a joint market survey overseen by representatives of importers, local manufacturers, FPCCI and KCCI but instead the directorate conducted a market inquiry by itself, he added. The prices of raw material used in toilet soap manufacturing in the international market has dropped by 40-50 percent during the last few months, but the latest valuation ruling seemed an attempt to discourage the legal imports in totality, Zaki said. Putting the demand of toilet soap in the country at 200,000 metric tonnes per annum, he said that the local manufacturers are meeting only 63 percent of the demand while legal imports and smuggling through the Afghan Transit Trade is meeting 7-8 percent and 13-14 percent respectively. This means that at least 16 percent of the demand remains unmet from these three sources and the latest valuation ruling would give rise to smuggling, which would ultimately deprive the government of substantial revenue.
widen tax base to prosper pakistan: DC Sheharyar argodha Inland Revenue Deputy Commissioner Sheharyar Akram Awan said Pakistan’s prosperity depended on widening of the tax base. In a statement, he said that on the directions of the federal government the date for submitting tax statements has been extended until December 5. Awan added that eight sub-offices have also been set up to facilitate taxpayers. He said that one-window facility was being provided at the sub-offices where common people, traders and industrialists could avail this facility. The deputy commissioner said that people with up to Rs 0.5 million annual income could send their tax statements online, adding that there was no tax on annual income up to Rs 0.4 million. —CT Report
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CARTOONSSPECIAL 11
DECEMBER 09 - DECEMBER 15, 2014
DC Customs Adjudication Saima decides case of Data Corporation
MULTAN: Deputy Collector Customs Adjudication Saima Ayaz decided the case No 34/2014 and ordered to confiscate goods of Data Corporation Limited. The Data Corporation Company Limited had imported different engines and generators from China. The engines and generators were imported from China. Customs Intelligence and Investigation seized the goods after the fake import documents were presented for the clearance. The owner failed in providing ownership evidence.
Inland revenue tribunal starts computerisation of record LAHORE
MAHMooD IDreeS www.customstoday.com
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he Inland Revenue appellate tribunal has started to computerise record. Addressing a seminar, Inland Revenue Appellate Tribunal Headquarters Bench Chairman Jawaid Masood Tahir Bhatti said that the tribunal was taking measures to resolve the cases as soon as possible. He said that the record of cases was being computerised to facilitate the appellants. He said all appellants would be able to get information about their cases by only sending a short message service (SMS) after the computerisation of the record. He added that tribunals would be established in other districts by increasing the workforce.
Govt slaps one-percent penalty on property tax
Port Qasim collects Rs 21.5 billion in Nov he Model Customs Collectorate of Port Muhammad Bin Qasim has collected a revenue amounting Rs 21.5 billion in November, 2014 during the fiscal year 2014-15 against the set target of Rs 22.5 billion. According to statistics, the MCC-Port Muhammad Bin Qasim collected an amount of Rs 5.32189 billion in share of Customs Duty (CD) against its set target of R s5.12 billion with an increase of Rs 200.11 million in the month of November-2014. The Collectorate has collected an amount of Rs 13.2 billion in share of Sales Tax (ST) against its set target of Rs 14.3 billion with a shortfall of Rs 1.15 billion. The MCC-Port Muhammad Bin Qasim has collected an amount of Rs 240.6 million in share of Federal Excise Duty (FED) November-2014 against its set target of Rs 209.52 million with an increase of Rs 31.16million. Similarly, the MCC-Port Muhammad Bin Qasim has collected an amount of Rs 2.7 billion in share of Income Tax (IT) during the month of November-2014 against its set target of Rs 2.8 billion with a shortfall of Rs 88.37 million. —CT Report
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Customs arrests cop on smuggling charges he Customs Intelligence and Investigation Friday impounded three imported vehicles and smashed the smugglers gang led by a Sub-Inspector of Balochistan Police. The Customs Intelligence successfully led by Inspector Hamid Habib smashed the group involved in the smuggling of imported vehicles in Punjab from Balochistan. The Customs Intelligence and Investigation received information that few vehicles would be passing very soon from Sadiqabad to other areas of Punjab. When the smuggled vehicles reached Sadiqabad, the Customs Intelligence and Investigation team raided them and seized all the vehicles. Ring leader Gul Hassan along with his accomplices was arrested. The registration number of the impounded vehicle was A-2755 and two vehicles were applied for registration. Owner of the vehicles failed to produce the documents of the vehicles. On investigation, the Customs Intelligence and Investigation came to know that the driver of the impounded vehicles was a subinspector of the Balochistan Police and was serving at City Police Office Quetta. —CT Report
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LAHORE
IMrAN MeHAr
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unjab Excise and Taxation Department has imposed onepercent penalty on property tax defaulters. The provincial government had offered a Mive-percent discount on
property tax which expired on 30 November. Notices are being issued now to defaulters with one percent penance. Property would be seized if citizens failed to submit the property tax. The Excise and Taxation Department has faced a revenue shortfall during the Mirst Mive months of the current Miscal year 2014-15. The Pun-
jab government offered a Mive-percent discount to generate revenue by luring the citizens into paying their property tax. However, the Punjab government failed to collect revenue as the excise department staff went on strike against the government for taking action against ofMicials for sending inMlated tax notices to the people.
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12
DECEMBER 09 - DECEMBER 15, 2014
Sindh excise Department to start hiring of lower staff
KARACHI: Recruitment will be started soon in the Sindh Excise and Taxation Department. “The work has been completed in this regard and advertisements are being published in the newspapers. Applications will be invited for Grade-2 to -12 slots in first phase. Application forms will be available on website. Applicants will send the filled form with required documents. In the second phase, applicants will be interviewed. Junior clerks and soldiers will be recruited after completion of first hiring,” a source said.
Smart Zone directors put on ECL on Customs Intelligence request Customs intelligence is probing the tCS and Smart Zone for their alleged involvement in smuggling under the garb of Afghan transit trade
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he Interior Ministry has put the names of Smart Zone directors Asghar and Latif Hakeem on the Exit Control List (ECL) on the request
ISLAMABAD
MUHAMMAD FAIZAN www.customstoday.com
of Customs Intelligence and Investigation. The customs intelligence is probing the TCS and Smart Zone for their alleged involvement in smug-
gling under the garb of Afghan Transit Trade. The customs intelligence has also issued notices to the shopkeepers and wholesalers who re-
ceived non-duty paid electronics. Shopkeepers have submitted their replies, but the department has declared them unsatisfactory.
KtBA urges Bajwa, Ijaz to allow CCs to exclude wrongly selected audit cases Hashmi says exclusion of such cases would facilitate taxpayers and allow tax advisers to spare time for correspondence KARACHI
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arachi Tax Bar Association (KTBA) President Syed Waseem Hashmi has requested Federal Board of Revenue (FBR) Chairman Tariq Bajwa and FBR Member Tax Audit Syed Ijaz Hussain to authorise the chief commissioners (CCs) to exclude wrongly selected cases for audit and drop the audit proceedings. The Karachi Tax Bar Association president has written a letter to the FBR high-ups in this
regard. In a statement, the KTBA president said that the exclusion of such cases would certainly facilitate the taxpayers and would bring about efficiency and allow the tax advisers to spare time for correspondence in this regard. Hashmi added that when the computer balloting took place for selecting the cases for audit, unfortunately through errors and flaws in PRAL data base, the cases that were excluded from selection for audit as per policy decision of the Board in Council were wrongly selected for audit.
The KTBA president said that as per policy decision of the Board in Council, some cases were excluded from selection of cases for audit through random computer balloting in Income Tax Non-Corporate Returns and Income Tax Corporate Returns. The excluded cases are: cases falling under the Final Tax Regime (FTR), taxable income only from salary, all cases qualifying for immunity from audit under Section 214C under the Prime Minister’s Tax Incentive Scheme issued under SRO1040(I)/2013 read with Board’s Circular No 15 of 2013; taxable income only from house
property; taxable income only from share from Association of Persons (AOP); all cases already taken up for audit under Section 177 of the Income Tax Ordinance, 2001 for tax year 2013 whether finalised or pending for assessment; all cases already selected for audit through computer random balloting for the tax year 2012 whether under process or finalized; all cases where no business is stated to have been conducted for the tax year 2013. Cases to be excluded for Income Tax Corporate Returns are: all cases of Final Tax
Regime (FTR), all cases already taken up for audit under Section 177 of the Income Tax Ordinance 2001 for tax year 2013 whether under process or finalised, all cases qualifying for immunity from audit under Section 214C under the Prime Minister’s Tax Incentive Scheme issued under SRO1040(I)/2013 read with Board’s Circular No 15 of 2013; all cases already selected for audit through computer random balloting for the tax year 2012 whether under process or finalised and all cases where no business is stated to have been conducted for the tax year 2013.
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