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Thursday, 21 September, 2012
FTO traces its zenith New heights for Federal Tax Ombudsman ISLAMABAD
T
APP
He Office of Federal Tax Ombudsman (FTO) in the year 2011 made a sum of Rs 7.89 billion refunds to the taxpayers as compared to Rs 7.08 billion during 2010. According to the Office of FTO statement, 2011 had been a historic year in several respects for the Office of the Federal Tax Ombudsman (FTO) Pakistan. “The exceptional achievements of the FTO have added new milestones to its history”, it added. These included refunds amounting to Rs 606 million in 455 income tax cases, Rs 570 million in 107 sales tax cases, and Rs 81 million in 15 customs cases. The highest amount of refund issued in a single income tax case, sales tax case and customs case was Rs 143.31 million, Rs 143.7 million and Rs 40.19 million respectively. The statement further said that the taxpayers also received a sum of Rs 6.16 million in compensation for delayed payment of refunds in 81 cases. In addition, under his suo moto jurisdiction, the FTO got settled 181,880 duty draw-back customs cases involving refunds of Rs 6.63 billion during 2011 as against 194,056 duty draw-back cases involving refunds of Rs 4.9 billion in 2010. It was worth noting that Rs 7.89 billion that the taxpayers received due to the intervention of FTO during 2011 was almost 4 times of the total amount that they got during 2000-2009, and 36 times of the average per annum the taxpayers received during the same ten-year period.
Cement export posts 20.38% growth ISLAMABAD APP
Cement export from the country during the first two month of current financial year posted growth of 20.38 percent as compared to the same period of last year. According to data of Pakistan Bureau of Statistics (PBS), about 1,154,554 metric ton cement worth $ 91.356 million was exported during the period from July to August 2012 as against the export of 1,457,677 metric tons costing $ 75.891 million in same period of last year Cement export from the country recorded 11.80 percent during the month of August as compared to export of last month as about 609,429 metric ton cement valuing $ 45.159 million during the period under review as compared to the export of 545,125 metric ton worth $ 46.197 million during the month of July 2012. During the period from July-August 2012, the export of gems and jewelry registered growth of 35.34 percent and 156.45 percent respectively as about 2 metric tons of gems worth $ 0.540 million exported as against 1 metric tons valuing $ 0.339 million of same period last year, it revealed. Meanwhile, jewellary worth $ 339.76 million exported during the first two months of current financial year as compared to $ 132.48 million during same period of last year. However, the export of furniture remained on down track and decreased by 29.35 percent during the first two month of current financial year where as handicraft exports remain stagnant. The data further revealed that the export of molasses registered 7.29 percent growth as 1,923 metric tons of molasses costing $ 0.265 million exported as against 2,025 metric tons of $ 0.247 million same period last year.
Another milestone that the FTO was able to achieve during 2011 was in terms of disposal time of complaints. The average time taken to decide a complaint was exceptionally brought down to 60 days, as compared to 67 days for 2010 and 117 days for 2009. There was no Ombudsman office in the world which had achieved such a high level of efficiency in handling taxpayers’ complaints. Under his thematic approach, FTO declared 2011 as the ‘year of implementation’. With exceptional effort, FTO’s decisions in as many as 760
cases got implemented by the Federal Board of Revenue during 2011, as compared to 331 cases during 2010 and 170 cases during 2009. In other words, the number of decisions got implemented during 2011 was 2.3 times as much as for 2010. More specifically, the implemented decisions pertained to recommendations issued in 2011 (222), 2010 (425), 2009 (48), 2008 (52), 2007 (6), 2006 (2), 2005 (2), 2003 (1) and 2002 (2). In 2011, the FTO received 1390 individual taxpayer complaints of which 706
(50.80%) pertained to income tax, 349 (25.10%) to customs, 328 (23.60%) to sales tax, and 7 (0.50%) to Federal excise Duty. Of these, 1218 (87.63%) complaints were decided by 31st December 2011. Of the decided complaints, 1053 (86.45%) ended up in favor of taxpayers. For the first time in the history of FTO, the taxpayers’ grievances in as many as 370 complaints filed during 2011 were got redressed during the investigation phase. The focus was shifted to getting the disputes resolved, from issuing Recommendations at the end of investigation. Out of Recommendation issued in 683 complaints during 2011, FBR implemented 222
cases and filed representations in 211 cases. In addition, 184 complaints pending from 2010 were also disposed of by March 31, 2011. In early 2011 the FTO submitted the `Container Scam’ investigation report to the Supreme Court.
The scam turned out to be `mother of all scams’. The ongoing follow-up investigation led to detection of at least 28,802 commercial containers and a further 3,542 containers imported in the name of ISAF/NATO that went `missing’ during the period January 2007 to October 2010, and the numbers are still rising. While the security-related aspects of the scam are yet to be quantified, the colossal loss of revenue, assuming that these containers carried the usual smugglingprone items, was estimated at over Rs 60 billion. The impact of FTO investigation on local industry, which was dying due to flood of `duty-free’ smuggled items, had been phenomenal. Not only had the transit-related `smuggling’ registered a staggering drop of 60 percent, the investigation was yielding over Rs 1 billion per month in additional revenue due to diversion of smuggling-prove items to regular import channels. In a 2011 study conducted by the Islamic Countries Society of Statistical Sciences (ISOSS), a Lahore-based independent research organization, over 90 percent of the respondents who had actually interacted with FTO rated FTO as most helpful and most clean public sector organization in Pakistan. The advisors and staff of FTO deserve generous appreciation for having achieved so high. One of the four organizations that contributed in improving Pakistan’s rank in 2011 was FTO Office, the other three being Public Accounts Committee of Parliament, Judiciary, and the Ministry of Defence for applying PPRA rules.
Serious food for thought Food imports decrease by over 9% in two months ISLAMABAD APP
Food imports into the country witnessed decrease of 9.02 percent during the first two months of the current fiscal year as compared to the corresponding period of last year. The food imports into the country were recorded at $818.011 million during July-August (2012-13) against the imports of $899.062 million recorded during July-August (2011-12), according to the data of Pakistan Bureau of Statistics released here. The major products that contributed in negative growth included tea, imports of which decreased by 24.72 percent during the period under review. Tea imports into the country were recorded at $42.541 million in July-August (2012-13) against the imports of $56.512 million during July-August
(2011-12). Imports of spices decreased by 8.71 percent by falling from $14.863 million to $13.568 million whereas the imports of palm oil decreased by 12.22 percent by going down from $466.360 million to $409.360 million. Imports of sugar were recorded at $1.334 million during the period under review against the imports of $6.160 million last year, showing negative growth of 78.34 percent. On the other hand, the food items that witnessed positive growth included milk, cream and milk food for infants, imports of which increased from $28.602 million last year to $34.545 million during current year, showing growth of 20.78 percent. The imports of dry fruits and nuts increased by 6.48 percent by growing from $15.767 million to $16.788 million whereas the imports of soyabean oil increased from $24.343 million to $29.755
million, showing increase of 22.23 percent. Similarly, the imports of pulses (leguminous vegetables) increased from $83.823 million to $93.293 million, showing increase of 11.30 percent. Meanwhile, the imports of all other food items decreased by 12.73 percent by going down from $202.632 million in July-August (2011-12) to $176.827 million in July-August (2012-13), the PBS data revealed. Meanwhile, during the month of August 2012-13 the food imports into the country witnessed decrease of 12.71 percent and 11.50 percent when compared to the imports of August 2011 and July 2012 respectively. Food imports in August 2012 stood at $384.064 million against the imports of $439.965 million and $433.947 million in August 2011 and July 2012 respectively.
7th phase of Indo-Pak secretary level talks underway ISLAMABAD STAFF REPORT
Pakistan and India started seventh phase of secretary trade talks in Islamabad on Thursday. Indian delegation headed by SR Rao secretary of trade met with Pakistani delegation headed by Muneer Qureshi, secretary of ministry of commerce and trade. They agreed to promote good trade relationship between both countries. Both the countries agreed to start the air service between Islamabad and New Delhi. Muneer Qureshi said that conditions have been changed between both the countries. “Both countries have made progress to solve trade related and other issues. During two days talks we will discuss how to end tariff and nontariff trade barriers, how to expand trade related infrastructure and how to overcome hurdles to start trade relations”, he said we would also discuss the pathway to allow banks of two countries to allow open branches in both countries. Head of Indian delegation SR Rao said on the occasion that according to WTO and World Bank analysis in near future regional trade especially in South Asia would progress.”Asia makes 50 percent of total population of the world. We have been striving hard to promote trade between both countries”, he said both India and Pakistan were emerging economies and this is our aim to bring the traders of both countries closer. Detailed discussed three agreements including agreement of cooperation and mutual assistance in customs matter, bilateral cooperation agreement between Pakistan Standards and Quality Control Authority of Science and Technology and Butreau of Indian Standards ministry of Custom Affiar, Food and Public Distribution and Agreement on Redress of trade grievances, would be signed today(Friday).
POL completes project for oil, gas production KARACHI ONLINE
Pakistan Oilfields Ltd (POL) notified that it had completed Bela-1 located in Meyal/Ucheri area that will produce around 100 barrels per day and 4-million-cubic-feet-per-day of oil and gas, respectively. According to company’s management, work over the project resulted in additional hydrocarbon flows coming from new zones of Chorgali and Sakessar. It worthy mentioning here that discovery from Bela was previously announced on March 16, 2010, when the field came into production stage but later faced operational issues.
Fahim wants more trade with Mauritius… and Turkmenistan ISLAMABAD APP/ONLINE
Federal Minister for Commerce Makhdoom Amin Fahim Thursday stressed the need for enhancing PakistanMauritius relations, particularly trade ties to benefit both the countries. Talking to the Deputy High Commissioner of Mauritius D. Prabhakar Gokulsing, the minister said that relations between the two countries were important and urged that both the sides should meet regularly to enhance these ties and boost trade. He said that although both the countries were enjoying good trade relations but there was still more scope which needed to be tapped and observed that trade should
not be restricted to a few subjects. The minister termed the meeting as important and referred to high level exchanges between the two countries which had been useful in creating better understanding between government and people Pakistan and Mauritius. On the occasion, Prabhakar Gokulsing, said that building a relationship based on mutual respects was a fundamental need. He said that Mauritius provided good opportunities for investors as about one million tourists visit Mauritius every year, making the country a potential market. ‘PAKISTAN TURKMENISTAN CAN BOOST TRADE TIES’: Federal Minister for Commerce Makhdoom Amin Faheem said that there was much room for enhancing trade volume between Pakistan and
Turkmenistan. He was speaking to the Ambassador of Turkmenistan Atadjan Movlamov who called on him at his office here on Thursday The Federal Minister said that relations between Pakistan & Turkmenistan were important and they should meet regularly to enhance ties and trade. He said that though we have good trade relations but there was still more scope. He cited this meeting to be very important. The Federal Minister also referred to high level exchanges between both the countries and said that they were very useful in creating better understanding between government and people Pakistan & Turkmenistan. Ambassador said that future relations between Pakistan & Turkmenistan should be based on market access and trade especially in context of
Turkmenistan as a transit country for Pakistani products. Federal Minister and the Ambassador exchanged views on Joint Government Committee Meeting to be held between the two countries later this year in Pakistan.