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Abc certified vol 2 issue no. 42
karachi, tue nov 04 - Mon nov 10, 2014
weekly
regd. no, Mc-1381
orDEring Action
Federal Board of Revenue ChairmanTariq Bajwa has ordered senior FBR officials to take stern action against tax evaders. | SEE pAgE 02 | iMproving SUrvEiLLAncE
it deprives them the incentive to raise long term capital. However, this is just one of SYED MUHAMMAD ASLAM the factors that discourage companies to www.customstoday.com list.” While elaborating his viewpoint, the ustoms Today interviewed Karachi KSE MD said, “I feel that this problem reStock Exchange (KSE) Managing Di- quires many prong solutions. We need to rector (MD) Nadeem Naqvi and bring new products such as derivatives, sought his views about a wide range of which is a norm in other parts of the topics and issues related to capital market. world. We also need to come up with new Naqvi was asked about the single most technology platform to enable both the important catalyst for the growth of capi- domestic and non-resident Pakistanis to tal market in Pakistan; the government’s access the capital market online as well as role in giving capital market a boost; the through smart phone and other online meKSE’s dialogue with index providers to put dia. We also need a simpliMied as well as Pakistan back to Emerging Market Index; uniMied account opening and documentaimproving the technology platform and tion process that is convenient for inoperational efMiciency of the KSE; KSE’s vestors as single-window system.” initiative to ensure IT security and, last To another question about enhancing but not least, the role of capital market in the circle of investor awareness proPakistan’s economic development. gramme, Mr Nadeem Naqvi said, “Last To a question about growth of the cap- year around 7,000 participants across the ital market, Naqvi said, “I think the sin- country attended the programme that KSE gle most important thing is expansion had sponsored. This Miscal year our target of the investor base which stands at is 10,000 plus. However, what is really just around 250,000 since 1948. needed is to have a wider coverage.” This is too small when compared Seeking Finance Minister Ishaq Dar’s to Bangladesh’s over one milsupport, the KSE MD said, “New instrulion and Iran’s and ments are also needed to be introduced, Turkey’s six million. especially in the Mixed income area. KSE This needs to change has launched government debt secbecause a narrow inondary market trading platform in vestor not only crepartnership with the Central Deposates market volatility itory Company. However, a lot and low liquidity but of support is required from also renders the price the banking industry, discovery mechanism the asset manageNew technology inefMicient. The narrow ment, the insurance platform needed to investor base also disand pension indusenable both domestic courages the companies try as well as the that want to list the potenand overseas Pakistanis tial universe of investors in See page 10 to access capital market shares because they feel that KARACHI
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Chief Collector Enforcement-South Nazim Saleem puts emphasis on measures to curb smuggling and improve surveillance mechanism of anti-smuggling organisation. SEE pAgE 03 | pErMitting AUDitorS
Appraisement-West Collector Muhammad Saleem decides to provide complete view of each good declaration to internal auditors and principal appraisers. | SEE pAgE 04 | DEMAnDing cArgo trAin
Collector Sarfaraz Warraich says bonded cargo train will flourish business activities in southern Punjab by opening new economic doors and opportunities. | SEE pAgE 09 |
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NOVEMBER 04 - NOVEMBER 10, 2014
Directorate of valuation working sans director
LAHORE: The Customs Directorate of Valuation has been working without the director valuation for the last one month. Director Valuation Mehboob Saqib retired on September 19. However, the Federal Board of Revenue had not filled the vacant post. Currently, the directorate is being run by the junior officers. Sources said that Collector of Appeal Asif Mehmood Jah may be posted as director valuation.
FIA starts probe into seized‘Saudi consignments’ he Federal Investigation Agency (FIA) has started a probe into the clearance of 58 consignments on the documents of Saudi consulate from the Port Qasim Collectorate in July, Customs Today learnt on Tuesday. The seized goods include laptops, mobile phones, batteries and auto-parts, which tried to clear. The Port Qasim Collectorate examining staff found that some people were trying to clear electronics worth billions of rupees on the documents of Saudi consulate. Subsequently, the Port Qasim Collectorate officials made a seizure report and forwarded it to the Collectorate of Customs Adjudication-I for legal proceedings.The seizure report was made against unidentified accused, as no one claimed the authority of the imported consignments. On the other hand, the Saudi consulate officials also refused to claim the ownership of the seized goods. Afterwards, the Collectorate of Customs Adjudication-I in its Order-inOriginal (ONO) ordered officials concerned to confiscate the goods and auction them. Meanwhile, the FIA officials have included officials of the Saudi consulate and Pakistan Customs in the investigation. An FIA investigation official said the officials concerned of the Saudi consulate have also been grilled. “The Saudi consul general in Karachi told us that the staff we (FIA) wanted to interrogate has been sent back to Saudi Arabia,” the FIA official added. He also said that the FIA authorities were in touch with the Collectorate of Customs Adjudication-I officials to know the current status of the case. The Pakistan Customs officials said the Federal Board of Revenue has written a letter to the Foreign Affairs Ministry in which it sought permission to examine diplomatic consignments. —CT Report
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fbr recovers rs16m from bank accounts of 3 companies
fbr chairman orders stern action against tax evaders FBR chairman Bajwa forms body to analyse decrease in oil import ISLAMABAD
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ederal Board of Revenue Chairman Tariq Bajwa has ordered senior FBR ofMicials to take stern action against tax evaders. Bajwa has said no pressure would be accepted in this regard. The enforcement plan should be implemented in letter and spirit. FBR Member Enforcement and Withholding Tax Ali Salman Abbasi gave a brieMing on Mirst quarter of the current Miscal year. The FBR chairman, all members and director generals, took part in the meeting. During the meeting, data regarding tax evaders Miled by various Mield formations were also presented. The meeting also decided to broaden the tax net and to issue orders to Mield formations to expedite action against tax evaders. The meeting also discussed enforcement plan. They decided to issue orders to expedite the pace of tax recovery. The meeting also discussed overdue taxes and affected revenue due to cases pending in the courts. Meanwhile, Federal Board of Revenue Chairman Tariq Bajwa constituted a special committee to analyse the decrease in import of oil in the country and its collected
revenue. The FBR is going to a hold meeting along with Collector Customs Multan about oil revenue after revealing the fact that consumption of local oil is increasing day by day and the import of oil is decreasing due to increase in domestic oil production. The committee will discuss the
fbr issues special-audit notices to 4,000 units in Sialkot region SIALKOT
BR RegionalTax Office-I, Zone-II has recovered Rs 16. 8 million from bank accounts of three companies. According to details, the tax office recovered the amount attaching bank account of three companies including Ever Fresh Fans (PVT) Limited, Intra Kack (PVT) Limited and Esan Chapal (PVT) Limited. The official sources said that companies’accounts were attached as the companies failed to comply with the notice to pay the taxes.They added that the FBR authorities following tracing the companies accounts at Maazan Bank, Alfalah Bank recovered the due tax amount from the companies for the year 2010-11.The RegionalTax Office recovered Rs 12 million from Esan Chapel PVT Limited, Rs 2.168 million from Intra Kack PVT Limited and Rs 2.743m from Ever Fresh Fans PVT limited. —CT Report
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import of oil and their collected revenues through collection of customs duty and to check the fact that why customs duty of imported oil is falling down. Collector Sarfraz Ahmad Warraich has been designated as a focal person of oil industry and will chair the meeting along with other members of the FBR. The Committee has
ZAfAr MALik
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he Federal Board of Revenue (FBR) has issued special-audit notices to as many as 4,000 industrial units located in Sialkot, Narowal and Gujrat districts for their alleged involvement in tax evasion and concealing of facts. The FBR has formed 11 special teams in this regard. The teams have started the pre-audit process. According to FBR ofMicials, the industrial units have been asked for special audit. The units have also been urged to provide all the relevant record to the visiting FBR teams. They said that around 6,762 industrial units in Gujranwala Division have been selected for the special audit, of which the notices have been issued to 4,000 units, while the notices would be issued to rest of the 2762 units soon. The owners of the industrial units, after getting the special-audit notices, were perturbed and they have been contacting their tax lawyers to resolve the issue.
Customs Intelligence seizes 3 trucks of ceramics, tyres
The FBR has issued directives to the senior ofMicials of Regional Tax Directorate Sialkot to ensure early audit of the industrial units, besides, the re-scrutiny of the tax returns submissions Miled by the owners, exporters and importers of these units. The FBR ofMicials said the special audit would begin within the next couple of days. Meanwhile, the Customs Intelligence seized three trucks carrying smuggled luggage and valuables worth Rs 4 million during a special checking at a bridge of River Chenab. According to the senior ofMicials, the Customs Intelligence seized three trucks loaded with ceramics tiles smuggled from Iran, but the customs duty of the tiles worth of Rs.1.2 million was not paid. The Customs Intelligence also seized a bulk quantity of the smuggled tyres worth Rs. 1.2 million and the smuggled cloths from China worth Rs 0.5 million, ten LED TVs and imported auto parts worth Rs 0.8 million from these trucks as well. Customs Intelligence sent the accused drivers and other staff of the said trucks behind the bars and has started investigations after registering separate cases against them in this regard.
decided to ask collector Port Qasim, Chief Commissioner’s large tax payers units and oil refineries to give comprehensive report about the oil import and production data. The step is being taken to evaluate the reduction of oil import and its custom duty while local oil dependency is increasing as compared to imported oil.
Law Ministry to re-appoint Soofia Latif as special judge KARACHI
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he post of the Customs and Taxation Court judge, which had been lying vacant due to the retirement of special judge Soofia Latif, would soon be filled. Sources told Customs Today that the Ministry of Law had sent a letter to the Prime Minister's Secretariat, seeking reappointment of Soofia Latif as a special judge on contract basis. They said that now an order had been issued from the secretariat and she would assume the charge of her office soon. It may be mentioned that hearings at the Customs and Taxation Court Karachi remained suspended for many weeks with cases piling up with each passing day and the litigants are facing problems due to unavailability of a judge in the court.
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NOVEMBER 04 - NOVEMBER 10, 2014
importers satisfied over token system in Appraisement-west
KARACHI: Clearing agents, importers and factory owners have showed satisfaction over token system introduced in the Model Customs Collectorate Appraisement-West. Talking to Customs Today, importers said since start of token system introduced in Model Customs Collectorate Appraisement (West), the system is running smoothly. The customs agents said, “The previous process was long and lengthy and we had to wait for long in queues.”
he All Pakistan Customs Bonded Carrier Association (APCBCA) has expressed deep concerns over the introduction of Truck Appointment System (TAS) on all imports from Afghanistan and upcountry deliveries. In a letter to C stated that the newly introduced TAS would surely increase unnecessary delay and result in huge financial losses to the traders. He said that the APCBCA was not taken into the confidence before introducing the said Truck Appointment System (TAS). He further stated that the service charges which have been introduced in TAS were unnecessary because the terminal has already been charging for handling of cargo. Burney was of the view that the said development will only increase the cost of doing business as the vehicles will have to wait for two days since day time travelling is not allowed for most of the vehicles of transshipment and transit which amounts to about 14000-15000 containers per month combined. In the letter, the APCBCA requested the authorities to stop the enforcement of the TAS for the betterment of the trade. It is pertinent to mention here that the DP-World Karachi has recently introduced a Truck Appointment System (TAS) for all imports from Afghanistan and upcountry deliveries. It would allow the QICT to provide unparalleled services to its existing and prospective customers by allowing them to avail extended storage, guaranteed faster truck turn-around times and providing them with round the clock support. According to the authorities of DPWorld, theTAS will also help the customers to take deliveries on their preferred/preselected time slots. —CT Report
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Strong surveillance crucial to uproot smuggling: chief collector nazim Sindh governor approves renovation plan for Customs House KARACHI
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hief Collector-Enforcement (South) Muhammad Nazim Saleem visited Customs House, Gaddani and held meeting with the Customs ofMicers. Collector Model Customs Collectorate-MCC Gwadar Syed Tanvir welcomed the Chief Collector-Enforcement (South) on his arrival. During the meeting, the Chief Collector-Enforcement (South) Muhammad Nazim Saleem emphasized on effective measures in order to curb smuggling and improved surveillance mechanism by antismuggling organisation to uproot the menace of smuggling. The Chief Collector-Enforcement (South) also directed the ofMicers and ofMicials concerned to streamline their priorities to enhance the revenue generation by curbing the smuggling activities. On the occasion, the Chief Collector informed the Customs ofMicers that the Federal Board of Revenue (FBR) was paying special heed towards the modernization of Gwadar Port on contemporary basis. “The Board is considering introducing modern tools and gadgets at Gwadar Port for uplifting the port as par international level,” he added. During the meeting, the Chief Collector-Enforcement (South) asked the ofMicers of Pakistan Customs to enhance revenue generation and make all out efforts to achieve the revenue target by the
— Exclusive Customs Today photo
Haulers say no to newTruck Appointment System
end of second quarters of the Miscal year 2014-15. On the occasion, Collector Gwadar Syed Tanveer briefed the Chief Collector-Enforcement (South) about the revenue collection and steps being taken in order to curb the smuggling activities. The
Chief Collector-Enforcement (South) expressed his satisfaction over the steps being taken by the Collectorate MCC-Gwadar and hoped that the ofMicers concerned will improve the performance more. Meanwhile, the renovation work of the Imperial Customs House (Old
Customs House) building and its adjacent historical and cultural heritage buildings to be started soon. It has been decided in a highlevel meeting chaired by Sindh Governor Dr Ishrat-ul-Ebad Khan at the Governor's House, Karachi. The meeting was attended by Collector MCC-Preventive Syed Muhammad Tariq Huda, Commander Pakistan Navy Vice Admiral Arifullah Hussaini, Principal Secretary to Governor Muhammad Hussain Syed, Commissioner Karachi Shaoib Ahmed Siddiqui and Karachi Administrator Rauf Akhtar Farooqui. During the meeting, Collector MCC-Preventive Tariq Huda gave a detail brieMing about the renovation plan to the Sindh governor. He said that the renovation plan would be completed in two stages, in which the Mirst phase will be completed in four months at a cost of Rs 70 million. He informed that proper greenery, repairing of roads, construction of parking lots and proper seating arrangements outside buildings would be ensured in the Mirst phase of the renovation plan. On the occasion, the governor emphasised for implementation of effective security measures and availability of Command & Control (C&C) and Quick Response Force (QRF) in and around Customs House and its other adjacent buildings. The governor also stressed the need for evolving a close liaison among the Customs, Karachi Port Trust (KPT) and KMC authorities in order to make the security measures more effective.
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NOVEMBER 04 - NOVEMBER 10, 2014
Anf foils smuggling bid, seizes 237kg hashish
MULTAN: The Anti-Narcotics Force (ANF) thwarted an attempt to smuggle 237 kg hashish and arrested two drug traffickers. The ANF authorities, on a tip-off, formed a team led by Inspector Mushtaq. The team stopped a Shehzore truck on Motorway Bypass Khanewal Road and seized 237 kg hashish. During initial investigation, it was revealed that the drug was being smuggled from Peshawar to Sindh. The accused have been identified as Wilayat and Zahir Shah.
collector Saleem to give access of each gD to internal auditors KARACHI
CCTV cameras at BOML terminal linked to Collector Saleem’s office
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FAISALABAD
HUMAYUn ZAHiD
www.customstoday.com he Customs Intelligence and Investigation Department of Faisalabad has seized 100 bundles of imported fabric worth Rs 0.8 million from Allied Chowk Faisalabad. According to the official details, I&I team intercepted a passenger bus coming from Peshawar to Faisalabad. Searching the bus, I&I team found 100 bundles of imported fabric worth Rs 800,000.The Customs I&I team has taken the fabric into their custody. Meanwhile, the Customs Intelligence and Investigation Department Faisalabad has seized black seeds (kalonji) worth Rs 4.4 million from Chiniot.The black seeds was loaded on Peshawar registered HinoTruckT-7420. Tahir Iqbal, Senior Intelligence Officer of I&I department Faisalabad, told Customs Today that the weight of the smuggled item is 12,700 kilograms and its market value is Rs 4.44 million.
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Punjab excise forms strategy to collect Rs2b token tax iMrAn MEHAr
www.customstoday.com he Punjab Excise Department has developed a new strategy to collect token tax worth Rs 2 billion. The department said as many as 245,000 vehicles across the Punjab had not been paying token tax for the last several years.The Excise andTaxation Department has taken serious step and formed eight teams to collect the token tax.The teams will check the token tax defaulters on roads. According to sources, the defaulters included 70 percent of commercial vehicles and 30 percent of domestic vehicles.The teams will collect token tax and will report to the director excise motor branch daily.
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he Model Customs Collectorate (MCC) of Appraisement-West officials have linked the CCTV cameras installed at BOML terminal to the collector’s office. Talking to Customs Today, Appraisement-West Collector Muhammad Saleem said that the collectorate has also planned to connect CCTV cameras installed at KICT and AICT to his office in the next week to monitor the examination process. “We have planned to link around 16 CCTV cameras altogether at all three terminals i.e. KICT, AICT and BOML in order to monitor the examination process continuously at the terminals,” he added. Collector Saleem also said that the additional collector administration would have access to the examination process at KICT, AICT and BOML through CCTV cameras. He said that the collectorate was endeavouring to facilitate trade within the parameters of laws. As many as 12 CCTV cameras have been installed at the appraising hall on the directives of the collector to monitor the activities of the officials.
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would review the performance of his subordinates on 8 November in a meeting and afterward monthly performance of the ofMicials/ofMicers concerned would be reviewed in this regard by the Collector-MCC Appraisement (West). The ADCs of the relevant groups would review the performance in-
ternally before the scheduled meeting on 8 November. They may work out their own monitoring mechanism that intended objectives are being met. Collector Saleem has started to visit the ofMices and departments of the collectorate to review the performance of ofMicials of the collectorate.
RTO-I chief Waqar Ahmad bars officials from fixing banners LAHORE
LAHORE
KARACHI
— Exclusive Customs Today photo
Customs seizes smuggled fabric, black seeds
he Model Customs Collectorate of Appraisement-West has decided to give complete access of each goods declaration (GD) to the internal auditors and principal appraisers (PAs), Customs Today learnt. According to details, Appraisement-West Collector Muhammad Saleem after discussions and feedback obtained during meetings with the PAs, assistant/deputy collectors and additional collectors has decided to provide a complete view of each GD to internal auditors and PAs. In this regard, the following objectives have been kept in the front in order to facilitate the traders and importers. The principal appraisers will daily monitor the assessment behaviour of their groups to see that the valuation ruling/internal assessment guidelines were applied properly; there were no distortions in data assessment; Green Channel clearance was reviewed regularly to stop its misuse and Transit Pass (TP) consignments were not showing abnormal behaviour. According to the collector’s directives, each PA, AC/DC has to prepare and show his/her performance for July-Oct 2014 on these points. A point-wise output will also be required highlighting detections made, recoveries affected or any other tangible achievements on this count. Sources informed Customs Today that Collector Muhammad Saleem
M HAYAt
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he Federal Board of Revenue (FBR) Regional Tax OfMice-1 has warned ofMicials from hanging banners, posters and afMixing stickers in and around the building where the FBR Revenue Alliance ofMice is also operating. According to a circular issued by the Additional Commissioner Headquarters Aamer Amin Bhatti, wall chalking and tempering with any public property is prohibited in law and, thus, hanging of banners, posters and afMixing stickers in and outside the RTO-I building is strictly prohibited. “Any ofMicer or ofMicial and outsider found involved in violation of above shall be dealt with under the relevant law and rules, includ-
ing E&D Rules 1973 and initiation of criminal proceeding against them as the case may be,” he highlighted. The circular read that the instructions were issued on the order of Chief Commissioner (CC) Waqar Ahmad. The instructions have also been brought to the notice of FBR Chairman Tariq Bajwa, Industrial Relations Operations, member administration and other authorities concerned. On the other hand, condemning the act, FBR Employees Union President Mian Abdul Qayoom alleged that the CC and his aides have designed the well-planned scheme to corner the union and deprive the FBR employees of their rights. He said that the CC was manipulating to eliminate the FBR CBA union which is registered with the
fbr Employees Union president Abdul Qayoom says cc and his aides are trying to corner union and deprive fbr employees of rights
NIRC. On the other hand, the CC was adamant that the FBR employees union has no legal existence. He added that Chief Commissioner Waqar Ahmad has managed to remove the banners hanged against the RT-I’s walls ascribed with slogans demanding the employees’ rights. Banners also praise ‘good deeds’ of the board. “We tried to meet the chief commissioner, however, he did not let us to have a meeting with him. Nevertheless, we are still optimistic to resolve the issue through dialogue with the CC. If the issue does not come to an end, we will act accordingly,” the president told Customs Today. This scribe approached Additional Chief Commissioner Aamer Amin Bhatti in his ofMice, but the ofMicial refused to comment.
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SPECIALREPORT
NOVEMBER 04 - NOVEMBER 10, 2014
ONLY TAX
EVADERS HATE IRIS MEMBER IT
RAANA AHMED fbr it member says she is waiting for someone to point out faults in tax calculation, but so far no such complaint has been received ISLAMABAD
MUHAMMAD fAiZAn www.customstoday.com
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ederal Board of Revenue (FBR) Information Technology (IT) Member Raana Ahmed said on Tuesday that as many as 117,000 taxpayers have submitted their income tax returns through e-filing, which is 52 percent more than the last year. During an exclusive interview with Customs Today, she said everyday 1,800 to 1900 people get themselves registered which proves that new software IRIS is user friendly. “Only tax evaders hate IRIS. Corrupt people fear that they will no more be able to show losses in returns. I am fighting a mafia. IRIS has nine modules and all modules will be launched until 31 December. There is no virus in the programme. The system is a big milestone for filers. Yes, virus resides in the minds of these people. They have united to prove IRIS as a failed system. Only envious people are
spreading rumours against the system. There is no fault in the system. It contains all calculations. I am waiting for someone to point out faults in the tax calculation, but so far no such complaint has been received. The FBR should be given credit for the programme.” The FBR IT member said the tax ratio on prize bonds was not IRIS issue, but it was a legal matter. “If someone drew a prize bond before the current fiscal year and cashed it in July then he has to pay 15 percent tax deduction, because tax ratio on prize bonds was increased from 10 to 15 percent after July.” “People need to understand the programme. I have told board members and officials that we will do everything to educate people about the software. Institutions are more important than individuals. I have played my role by giving this system to the people and country. I have burnt the midnight oil. It is not my loss if IRIS does not work, but it will certainly be a big setback for the
i have told board members and officials that we will do everything to educate people about the software
FBR.” She said they had given 10 years to make IRIS a success. “Earlier, only lawyers had the password. Now it has been taken from lawyers and given to taxpayers. People take time to understand and adopt new things. The FBR is progressing and it is likely that we will replace IRIS with another system after a few years.” Earlier, Customs Today had reported that some businessmen started propaganda against the software and the FBR had received several complaints from tax bars, chambers and other business and trade organisations in this regard. Karachi traders had told Customs Today that ‘virus’ had infected the software and it was not working properly. Last week, Karachi Chamber of Commerce and Industry President Iftikhar Ahmed Vohra had told Customs Today that traders were facing difficulties during e-filing of their tax returns. He had said “errors at a large scale” had surfaced in the software. The Pakistan Tax Bar Association had also written a six-page letter to FBR Chairman Tariq Bajwa in which they had pointed out the ‘flaws’.
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SPECIALREPORT 07
NOVEMBER 04 - NOVEMBER 10, 2014
— Exclusive Customs Today photos
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08 EDITORIAL
NOVEMBER 04 - NOVEMBER 10, 2014
Founder & Chairman ZulďŹ qar 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
bajwa’s narratives
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ederal Board of Revenue (FBR) Chairman Tariq Bajwa’s claim that his department has achievedthe desired targets, including tax collection and broadening of tax net, auspicatesthe emergence of a strong financial order in the coming months. According to him, at least 40,000 new taxpayers have been registered and the government is prepared for the fifth assessment of the economy with the International Monetary Fund (IMF). He says that in case of low tax recoveries, the government and parliament will decide whether to impose new taxes or not and it is not his prerogative to decide anything in this regard. During is informal chat with the journalists after attending the international investment conference in Islamabad, he also says that the FBR is smoothly going ahead with its plan to achieve the tax collections target while the shortfall of Rs 20 billion will also be filled during the next quarter of the current fiscal year. Bajwa also says that work has been started to introduce investment-friendly tax system in the country and that work on tax reforms is also under process. The ratio of corporate tax has been curtailed from 35 percent to 33 percent and it will be further slashed to 30 percent. Tax relaxation is available for food processing and packaging units in the Federally Administered Tribal Areas, Gilgit-Baltistan and Azad Jammu and Kashmir for five years. A 10-year income tax exemption has been given to the businessmen who will invest in the Gwadar Industrial Zone whilethe power plants, which will be installed to produce electricity from coal, are exempted from any type of taxes and duties. Tax credit facility is also available to restore the sick industrial units. It is a good omen that an effort is being made to restore the confidence of the local and foreign investors on the economic policies of the government. Pakistan can become the hub of the international trade if issues such as the law and order and energy shortage are resolved. After assuming his office, Prime Minister Nawaz Sharif had said that his first, second and third priority is business, business and business. All the other political forces should also join hands with the government to extricate the country from the present economic mess.
pakistan as favourite tourist destination LAHORE
Dr AftAb AfZAL
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he other day, a meeting of the board of directors of the Pakistan Tourism Development Corporation underlined the need for concerted efforts to promote tourism industry in the country. Tourism has emerged as a promising industry in recent years and is not only a popular recreation but also it means business. Several economies in Europe, Asia and North America wholly or partially depend on tourism. Switzerland, Greece, Hungary, Italy and even Croatia have become favourite destinations for the tourists across the world. Some are the religious destinations while the others are recre-
ational, but tourism brings money and positive side of the host country. Only last year, around 2 million Chinese visited the United States and the number is expected to reach 20 million by 2020. Pakistan is blessed with snowcladded mountains, lush green valleys and thousands of feet above the sea level beautiful lakes. At least 14 out of 17 highest mountain peaks in the world are in Pakistan and Indus civilisation is one of the oldest in the world having academic and historical worth not less than that of the Euphrates and Nile civilisations. Pakistan has holy relics and sacred places for the devotees and pilgrims of Sikh, Jain, Hindu and Buddhism. There is a need to revive tourism industry in Pakistan by not only encouraging the local tourists but also
the tourism industry in pakistan is facing multiple problems at official and social levels
from all over the world. As it was observed in the meeting, tourism can act as a driving force for economic development and it will also help build a soft image of Pakistan. The tourism industry in Pakistan is facing multiple problems at official and social levels. The government never considered tourism as an industry to regulate it on modern lines. The official rigmarole is a big hurdle in the way of a large-scale investment as no one is ready to put his money at stake in this business. The general public should also accept tourists as guests and do not look the foreign tourists with disdain and avoid them asking unwanted questioning. The government should at least relax visa regime for the pilgrims of regional countries to visit sacred locations in Pakistan.
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NOVEMBER 04 - NOVEMBER 10, 2014
Appraisement-East forms body to open tender
KARACHI: Model Customs Collectorate of Appraisement–East has constituted a five-member committee to open tender to buy furniture, installation of a telephone exchange and IT hardware. Additional Collector Zeba Bashir Ahmad will head the committee. The other members of the committee are: Additional Collector-II Muhammad Tahir, Additional Collector-IV Dr Shahab Imam, Deputy Collector Rahmatulah Vistro and Deputy Collector (R&D) Rizwan Ahmed.
FBR’s process of scrutiny of workers asset declaration kicks off ISLAMABAD
MUHAMMAD ArSHAD
collector Sarfraz stresses cargo train for Multan Dry port
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Multan Dry Port Trust performs better than last year: Younas
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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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ollector Sarfraz Warraich has emphasised that bonded cargo train will Mlourish the business activities in this region because it will open new economic doors and opportunities for this region. The cargo train project for the Multan Dry Port is in doldrums due to insufMicient import and export cargo available at Multan Dry Port and a meeting was held in this regard the other day. Later, the participants of the meeting also visited proposed Mukhtara Wala Dry Port project which comprises 26 acres of land to look into the ways and means to accelerate progress for the early establishment of the dry port project. Warraich said that further development of the said port would going to play a crucial role in the infrastructure, development and boost in trading industrial development of the South Punjab. A committee was constituted by Mr Warraich which comprised Deputy Collector Dr Muhammad Ali Malik Multan Dry Port and General Manager Awais Zia Butt for early proposal of declaration of Sher Shah Railway Junction. The Committee is likely to submit its report within two weeks which will be forwarded to
— Exclusive Customs Today photo
BR has delegated responsibility to newlyappointed chief management to scrutinize the information furnished by the employees in their asset declarations forms. MalikTanvir Akhtar has been asked to hold tight scrutiny of the information provided by the FBR officials and employees in the annual asset declaration forms. Under Revised Conduct Rules 1964, submission of asset declaration forms is mandatory for all employees after the closure of every financial year. A well-placed source at FBR told this scribe here onTuesday that with the appointment of newly appointed Chief Management Malik Tanvir Akhtar, serious efforts in this regard had kicked off.The source said that Asset Declaration Form carried information of total income of employees, his or her spouse, expenditures incurred on education of children, foreign trips, membership fee of clubs and household. Form also carried information about all moveable and immovable assets, his or her spouse and dependants. “Details of banks accounts are also part of this information,” the source said, adding: “Submission of reconciliation of increase or decrease is also must”.The source said that nothing significant had been happened in this regard in the past, however, the incumbent government had taken this issue seriously ensured that all employees should submit these forms. “Under the directions of the government that FBR took strict action against those officials and employees who failed in submitting their asset declaration and as per punishment stopped payment of their performance allowances,” the source said.
collector Sarfraz warraich Federal Board of Revenue for notiMication of bounded area. Meanwhile, the Multan Dry Port Trust (MDPT) performed far better than the previous year in handling of import and export cargo, Multan Dry Port Trust Chairman Khawaja Younas said. The Multan Dry Port is one of the best dry ports in Pakistan due to its prime location as it is the only port in southern Punjab.
He requested business community to utilise best available services of the dry port trust to play a vital role in the prosperity of the region. He said that during September the trust’s export volume was Rs 1.69 billion. He said that 607 export and 206 import consignments were handled in September. The import volume in August was Rs 1.07 billion and the total duty taxes collected were Rs 122 billion, he said.
Younas said that he would make efforts for the approval of Sher Shah Railway Junction for customs bonded area to enhance the business activities in the region. Multan Dry Port Trust General Manager Awais Butt said he was trying to persuade the previous importers and exporters to utilise the Multan Dry Port Trust for the speedy clearance of their import and export consignments.
Appeal to allow in-bonding of consignments To,
Ms. Surraiya Butt, Port Muhammad Bin Qasim Collector, Dear Madam,
This is written to you in reference to machine numbers KPPI IB 18236-03-10-2014 and KPPI IB 18235-03-10-2014 for which we have filed our Into Bond GD numbers under WeBOC System for warehousing of the goods in bonded warehouse. The vessel berthed at QICT and our containers/consignments were later shifted to MTO. The WeBOC group examined the goods and GDs in all respects. When we approached to take the delivery of the consignments from port area, the officials at MTO said that the system did not show for In Bonding of our consignments. In this connection, we hereby want to explain that we are facing financial problems due to slump in the market and so that we are mov-
ing our consignments to Bonded Warehouse. Our consignment is incurring heavy Port Demurrage and detention charges and so that we request your kind honour to please allow InBonding of our consignments to enable us to
move the consignments to Warehouse. With profound regards, Iqbal Rasheed, Karachi
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10 NATIONAL
NOVEMBER 04 - NOVEMBER 10, 2014
Secretary khalid says Multan Excise to get police station soon
MULTAN: An excise and taxation police station will be inaugurated in the city soon, said Excise and Taxation Secretary Khalid Masood Khan. Khan said that the increase in property taxes was not more than 50 percent. Revenue target of motor vehicle registration, excise and property taxes would be attained, he said. He said he has ordered his staff not to charge additional taxes from the people in terms of property taxes applied by the government.
Expansion of investor base must for capital market growth: kSE MD nadeem naqvi brokerage industry to create a nationwide distribution system so an average saver could access this facility.”Talking about Islamic financing, Mr Naqvi said,“Presently, it is the fastest growing segment of the financial services worldwide. Although, Islamic banking has taken off smoothly in Pakistan but Islamic capital market instruments such as Ijara Sukook and Sharia-compliant ETF baskets need to be introduced. As a first step, the KSE Islamic Index in partnership with Meezan Bank Group is already there in the form of KMI (KSE Meezan Index). Under the guidance from the Securities and Exchange Commission, the KSE is participating in the All Share Islamic Index under scholar Dr Imran Usmani.” Differentiating between the roles of KSE and SECP, the KSE MD, said,“KSE is the frontline regulator while the SECP is the apex regulator. The primary role of KSE is to propose specific rules and regulations that govern listed companies, brokers and market participants in the interest of level playing field, fair play and transparency for all constituencies using the capital market.The SECP’s role, on the other hand, is to assess and approve the regulatory policies and procedures developed by the exchanges and agreed upon by their respective regulatory affairs committees comprising independent directors and the board of the exchanges. SECP can, of course, take direct decisions as well as create rules that it believes are important in public interest and safety of capital market. SECP can also issue directives to the exchanges from time to time.” Sharing his views about the Frontier Market and Emerging Market, Mr Naqvi, said, “Mechanisms are in place in terms of a formal coordination between the SECP and the State Bank of Pakistan (SBP) to ensure better
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management and provision of liquidity in the event of a future system-wide crisis some Index providers are still continuing to keep Pakistan in the Frontier Market Index although technically Pakistani capital market fulfils all the prerequisites to move back to Emerging Market Index. KSE is in constant dialogue with the index providers, including MSCI, to put Pakistan back to Emerging Market Index. It is symbolically important if Pakistan regains its former Emerging Market Index status both in terms of
greater visibility in international investment radar screen as well as Pakistani listed corporate sector to tap international capital markets for its funding needs. I expect that we will move back in the Emerging Market Index in future.” About improving technology platform and operational efficiency of KSE, he said,“After demutualisation in August 2012 the organisational structure of the KSE has changed significantly.The enactment of Demutualisation Act provided a framework for
corporatisation and demutualisation of stock exchanges which is expected to result in expanding market outreach, attracting new investors, improving liquidity and enabling the stock exchanges to attract international strategic partners. It also envisages facilitating the consolidation of brokers, leading to financially strong entities. The regulatory and public interest role of the exchange may be contrasted with its commercial role and objectives. In this regard, the SECP also approved a 'Plan for Segregation of Commercial and Regulatory Functions of Stock Exchanges' which provides for separation of regulatory and commercial functions performed by various departments of the exchange.The Regulatory Affairs Committee is to function as a Chinese wall for effectively segregating the regulatory functions of the Exchange from its commercial activities.To successfully attain segregation, two distinct reporting lines have been identified, wherein the regulatory departments report to the chief regulatory officer and the commercial department’s report to the MD.” Talking about measures taken to secure data from hacking, the KSE managing director said,“IT security, both internal and external, is a major priority of KSE management and the board. For the first time a new position of chief information security officer has been created and an internationally experienced IT security professional has been inducted to lead a team of experts in this regard.” Sharing his views about role of capital market in the economic development and industrial growth, Mr Naqvi said,“During the last one-and-half decade Rs 1 trillion have been raised by the corporate sector in the form of debt and equity through the capital market. Out of this 20 percent has been raised by the Government of Pakistan via privatisation through stock exchanges.”
WeBOCPCAmodule infinaltestingphase: PervezEsbhani he WeBOC module exclusively designed for the Post Clearance Audit (PCA) department of Pakistan Customs is in the final phase of testing at present and it is expected to be operational soon, PCA Director Pervez Esbhani informed Customs Today. The installation of the PCA module on the automated Web Based One Custom (WeBOC) would help bring not only transparency to the work of the Directorate General of PCA, which was established in 2008 but got operational over two years later would also help bring transparency, Pervez Esbhani added. The automation of the PCA department would also help ease the flow of work as well as help save enormous amount of time and energy required due to processes being handled being manually today, he added. —CT Report
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CustomsIntelligence impoundsabove Rs130millegalgoods irectorate of Customs Intelligence and Investigation (I&I) Lahore Thursday seized above Rs 130 million non-customs paid and illegal steel sheet, perfume cosmetics, cloth and other items in different raids. In the first raid, I&I anti-smuggling team conducted raid at a godown Hashaim Khayal at Misri Shah. Sources said that the team raided in night and confiscated 690 tons of tin plates and steel sheets worth Rs 130 million involving duty and taxes Rs 23 million.
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Anjuman-e-TajranthreatenscountrywideprotestsagainstSR0-608 LAHORE
MAHMooD iDrEES www.customstoday.com
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he All Pakistan Anjuman-e-Tajran (APAT) on Wednesday hinted at going on strike after October as the Federal Board of Revenue (FBR) has refused to withdraw the SRO-608. Talking to Customs Today, APAT President Khalid Pervaiz said, “We will announce our strategy after the end of October deadline given to the FBR regarding the withdrawal of SRO-608. We may give a protest call if the FBR will not amend the new taxation on retailers.” He added, “We are in contact with traders all over Pakistan regarding the possible strike.” He said the FBR should broaden the tax net and it should also show care towards small traders and retailers. “It is not acceptable at all as it can affect the businesses
of retailers and small traders,” Pervaiz said. He praised the Lahore Chamber of Commerce and Industry (LCCI) resolution and demanded that the FBR withdraw SRO608. On Tuesday, LCCI President Ijaz A Mumtaz said at a meeting, “Shortage of gas and electricity and new taxation measures like SRO-608 are going to create a wrong impression about the government.” On the other hand, FBR spokesman Shahid Asad said that SRO-608 would not be withdrawn. Asad said, “Retailers should take taxes as their national responsibility. Their behaviour is non-cooperative. This is not in the country’s favour.” Over 100-150 retailers gathered at the FBR on Wednesday and shouted slogans against the measures being taken to bring retailers into documented regime and amendments in the retailer registration procedure. They said SRO-608 was not acceptable to the business community.
fbr, traders stand-off continues on Sro-608 ISLAMABAD
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raders have not yet provided any names to Federal Board of Revenue (FBR) for negotiations on controversial SRO-608 which adds to growing tensions among both. Islamabad traders have decided to discuss the matters in upcoming meeting of traders and member of chambers at Islamabad Chamber of Commerce and Industry (ICCI). The
suggestions decided in the meeting will be sent to FBR chairman and Member Inland Revenue Policy Shahid Asad so that both parties could be beneMitted. Islamabad Traders Welfare Association President Sirfraz Mughal has demanded the FBR to cancel the grading of traders on the basis of their credit cards and electricity bills under the controversial SRO-608. He said FBR should make a comprehensive policy after due consultation with traders. He also warned the FBR of protests if demands were not responded.
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CARTOONSSPECIAL 11
NOVEMBER 04 - NOVEMBER 10, 2014
nishtar Hospital imports machinery worth rs 110 million
MULTAN: The Multan Dry Port has cleared the import consignment of Nishtar Medical Hospital worth Rs 110 million after examination. The hospital’s Oncology Department has imported medical machinery for the treatment of various diseases. Multan Dry Port Principal Appraiser Mehmood Ahmad Khan has assessed the machinery valuation after presenting the goods declaration documents to them. The machinery includes equipment for the cancer treatment unit of the hospital.
fbr issues 2,800 final notices to tax avoiders LAHORE
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BR’s Broadening of Tax Base (BTB) Lahore issued 2,800 notices of demand to potential taxpayers whose income is taxable but avoiding Miling Income tax returns despite several notices issued to them. The BTB has issued 4,000 show cause notices to the potential taxpayers in September. However, only 1,200 filed them. The BTB has sent notices of demands as a further action asking the taxpayers to pay their taxes under section 137(2) of the Income Tax Ordinance 2001. The FBR ofMicial sources said that the potential taxpayers were asked earlier to Mile their income tax returns under section 114 (4) of the Income Tax Ordinance 2001 but they failed to do so. They added that the potential taxpayers were issued show cause notice against the non-compliance of notice issued under Section 114. The sources said that the BTB has now Minalised tax assessment
of the 2800 non-compliance of the notices for the year 2010 on the basis of available information with the BTB. The FBR BTB Lahore Zone following issuing notice of demand
asked the 2,800 non-filers to pay their calculated taxes within 15 days and not later than 30 days in the National Bank of Pakistan, State Bank, Treasury Offices and Non-Treasury Offices.
Customs recovers Rs 20 million evaded thru mis-declaration LAHORE
M HAYAt
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he Collectorate of Customs Appraisement unearthed and recovered millions of rupees tax evasion done in three cases of mis-declaration of steel sheets value. The Collectorate of Customs appraisement found duty and tax evasion of Rs 20 million in the cases. In Mirst case, the Collectorate recovered Rs 10.7 million from OS Corporation. The accused was alleged of mis-declaration on steel sheets being used for food stuffs preservation. The accused is said to have been clearing its steel consignments from Lahore Dry Port despite the fact that he belongs to Karachi and the steel sheets were imported at the Karachi Dry Port. In another cases the customs recovered Rs 7.7 million including duty taxes and fine penalty from Faheem Steel sheet. In yet another case, Inam Traders had mis-declared value of steel sheets evading Rs 1.2 million duty and taxes. The customs department has recovered the duty and taxes evasion of Rs 1.2 million along with the fine penalty imposed by the Collectorate of Adjudication. Meanwhile, the Anti-Smuggling Wing foiled two bids to smuggle Rs 2 million non-customs paid items.
According to details, the ofMicials intercepted two trucks (LXC-3738 and LSE6749) carrying illegal Iranian milk powder worth Rs 15 million near the railway station. The truck, owned by Muhammad Faheem, was heading to Raiwind Road. In another raid, the customs ofMicials seized Rs 1 million Indian Vatika hair oil, foreign-origin cloth and miscellaneous items. The ofMicials were informed that the goods loaded in a truck (RLC-2358) were being smuggled into Lahore from Peshawar by Zaar Khan. The ofMicial sources said that both the raids were conducted by Anti-Smuggling Inspectors Irfan Mumtaz, Chaudhry Javaid and Khalid Butt on the orders of Deputy Collector of Customs ShaMiqur Rehman and Superintendent Mian Ajmal. Meanwhile, the Directorate of Customs Intellectual Property Rights (IPRs) held a workshop on IPRs violations and how to increase intra-agency cooperation to overcome them. According to details, Directorate of IPR Additional Director Mubashar Baig briefed customs ofMicials about curbing IPRs misuse and increasing intra-agency cooperation against the violations. The participants were also trained in detecting violation of IPR and its communication to the directorate. The World Trade Organisation has made it mandatory for the member countries to ensure that no violation occurs.
The FBR BTB Lahore Zone urged the taxpayers to pay their due taxes in time to avoid additional tax of 12 percent as a penalty every year under section 182 of the Income Tax Ordinance.
The ofMicial sources said that in case the taxpayers fail to deposit their due taxes, their properties and moveable assets would be attached to recover the tax payments.
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12
NOVEMBER 04 - NOVEMBER 10, 2014
Excise Dept to start hiring soon
KARACHI: The Excise and Taxation Department is going to start hiring new staff soon. According to sources in the department, hiring would start after the government's announcement. Sources said the government has assured that the recruitment would start in the next month. Although, no notification has been issued in this regard. Ads will be published in newspapers after getting permission from the government.
Commerce Ministry to set up land ports at Chaman, Wahga, Torkham
ISLAMABAD
MUHAMMAD ArSHAD www.customstoday.com
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he Ministry of Commerce is planning to establish Land Port Authority to supervise, monitor and accelerate trade with neighbouring countries, Customs Today learnt. As per plans, initially three land ports will be set-up at Wahga, Chaman and Torkham to
provide all the required facilities to the exporters and importers immediately on the beginning of their foreign visits or arrival back in the country. A well-placed source at Ministry of Commerce told this scribe here on Tuesday that the Ministry had almost completed the required paper or Mile work in this regard and proposal had been endorsed by almost all the concerned sections dealing with the foreign trade. “MoC prior to giving Minal touches to the said project held detailed discussions and consultations with all stakeholders from chambers of commerce and industries to ex-
porters and importers, got applause from every concerned quarter on the project,” the source added. The source said that under the proposed projects, the land ports would offer services and facilities to passengers including, bus service, bank, telephone, X-RAY scanners parking and taxi, cafeteria, washroom, prayer room and others. “Similarly these land ports will also be equipped with facilities for traders including Cargo Customs Building, Telephone, Post ofMice, Bank, Dog Squad, Police and Cafeteria , Cargo Scanner & Under Carriage Scanner, Ware House and others,” the source described.
The source said that land ports would develop and manage the facilities for cross border movement of passengers, cargo vehicles, provide space and facilities to regulatory agencies Customs, Immigration, Police and Health. Moreover, these land ports will also ensure smooth & efMicient movement of passengers as well as seamless, smooth, safe & secure movement of cargo. “The very objective in the minds of the planners is to Increase and promote trade, generate employment and wealth, boost investments and opportunities, enhance people to people contact, inter dependent neighbours,” the source added.
Asif Marghoob evolves strategy to curb oil smuggling KARACHI
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— Exclusive Customs Today photo
he Directorate General of Customs Intelligence and Investigation (I&I) Asif Marghoob Siddiqui has decided to launch a grand operation against illegal petrol pumps setup in Hyderabad and Sukkur. Talking to Customs Today at his office, the Director Customs Intelligence and Investigation Karachi Region said that the department, in close liaison with the district administration and law enforcing agencies (LEAs), will launch operations to stop
Motorcycle spare parts import is subject to a high customs duty of 25 percent
sale and purchase of illegal petrol and diesel. He further informed Customs Today that Chief Collector EnforcementSouth Muhammad Nazim Saleem has already written letters to the collectors of MCC Hyderabad and MCC Sukkur to evolve an effective strategy to initiate operations against illegal petrol pumps. “The anti-smuggling actions further need improvement,” he said, adding that the Directorate General of Customs I&I Luftullah Virk is determined to uproot smuggling from the country. “We have to pool the available resources of the collectorates and di-
rectorates in order to launch operations against smugglers,” he said. He said that the Director General Luftullah Virk, on behalf of Federal Board of Revenue (FBR) Chairman Tariq Bajwa, has awarded best performance certificates to the officials of the Sukkur Collectorate, including SPS Najam Jafri, Asfar Shah (inspector), Sajid Memon (sepoy) and Farrukh (UDC) in connection with their recent efforts at Rohri Bypass in which a huge quantity of Hashish had been seized. The Director Customs I&I FBR has confirmed that the department with its limited resources was trying to give best results.
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