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vol 2 Issue no. 12
karachi, tue April 08 - mon April 14, 2014
Regd. no, mc-1381
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Endingexemptionswouldleadto increasedrevenuegeneration, enablingPakistantospendmore ondevelopmentprogrammes,says IshaqDar. | See pAge 03 |
t is prime obligation of the FBR legal wing to effectively represent the board in the court of law including the apex courts, monitoring the performance of lawyers, commissioners and collectors, especially in case of appeals and prepare for and approve Oilling of references. FBR Member Legal Ahmed Dildar stated this during an exclusive chat with Customs Today. Ahmed Dildar said that apart this, the Legal Wing had major obligation to nominate and monitor attorney generals and ensure coordination between the FTO and FBR while assisting them. “Of course, performance of the Legal Wing is exemplary and it has been dealing with all legal matters of the FBR in an efOicient and professional manner,” he claimed, adding that the sort of mandate given to the Legal Wing
FTO urges the FBR chairman to look into the matters pertaining to problems facing taxpayers by FBR’s ﬁeld formations. | See pAge 04 | RedReSSIng vALuAtIon
FBR LegAL WIng hAS pRopoSed A numBeR oF AmendmentS, oF cuRAtIve nAtuRe,to FIScAL LAWS FoR IncoRpoRAtIon In the FInAnce BILL 2014-15
Chief Collector of MCC Appraisement-South has assured the importers for the redressal of their grievances regarding base oil valuation. | See pAge 09 |
— Exclusive Customs Today photo
| See pAge 11 |
always bound it to be proactive and wellversed while be able to cater for the challenges arose from ever-changing situation. “It is very right that if captain of a ship gives right directives at a right time, the ship always sails upright hence our Chairman Tariq Bajwa works hard to achieve the desired goals,” Ahmed Dildar pointed out. He revealed that as a Oirst step, the Legal Wing had implemented Litigation Management System (LMS) in all Inland Revenue Oield formations besides launching software on appeal management and processing system. Another extended application of ITMS has indigenously been developed with the help of Pakistan Revenue Automation Limited (PRAL) in application of Integrated Tax Management System (IYMS) with the aim to improve process of Oilling references in lower and apex courts, he informed. He told the Customs Today that another application for ITMS had also been developed for the facilitation of Pakistan Customs, Inland Revenue and Directorate Generals of FBR. He maintained that the Legal Wing had also ensured registration of the FBR Foundation as a separate legal entity to carry out welfare activities for in-service and retired employees and their dependents. It is another milestone achieved of the Legal Wing which reOlects the professional approach of the wing,” he claimed. To the question, Ahmed Dildar divulged that the FBR Legal Wing had proposed a number of amendments, of curative nature, to Oiscal laws for incorporation in the Finance Bill 2014-15. The FBR Member Legal averred that despite all these achievements he believed that there was a lot of work to be done to come up to the modern-day challenges and improve performance of the Legal Wing. “Look, reforms in the Legal Wing are the need of the hour with special emphasis on posting of law graduates, having legal acumen,” Ahmed Dilar stressed, adding that there was a need for imparting legal drafting training and legislative comprehension to the ofOicers/ofOicials of the Legal Wing. The FBR Member Legal emphasised on creation of post for assistant director/ deputy director in the wing with a minimum qualiOication of LLB on permanent basis.
APRIL 08 - APRIL 14, 2014
pIAF welcomes organisation of SAARc International exhibition
LAHORE: Pakistan Industrial & Traders Associations Front (PIAF) Chairman Malik Tahir Javed has said that SAARC International Exhibition (April 25 to 27) is a giant leap towards economic stability as it would not only accelerate trade and economic activities but would also pave the way for much needed foreign direct investment in the country. Business community should avail this opportunity in all possible manners. He said that fairs and exhibitions play a vital role in promotion of economic activities and also highlight the soft image of the respective country.
Rs81.7m tax evasion
he Directorate General of Customs Valuation has determined the Customs values of Spray paints and Menthol Crystal through Valuation Rulings No.649/2014 and 650/2014 respectively. According to the details, the Customs values of spray paints from China Origin having PCT 3208.9090 and proposed PCT for WeBOC is 3208.9090.1000 has fixed at US$0.80per Kg. The Customs values of spray paints from Thailand Origin having PCT 3208.9090 and proposed PCT for WeBOC is 3208.9090.1100 has fixed at US$0.85per Kg. The Customs values of spray paints from other origins having PCT 3208.9090 and proposed PCT for WeBOC is 3208.9090.1200 has fixed at US$1.00per Kg. Similarly, the Customs values of Menthol Crystal from China Origin having PCT 2906.1100 and proposed PCT for WeBOC is 2906.1100.1000 has fixed at US$18.00per Kg. The Customs values of Menthol Crystal from India Origin having PCT 2906.1100 and proposed PCT for WeBOC is 2906.1100.1100 has fixed at US$17.00per Kg. The Customs values of Menthol Crystal from other origins having PCT 2906.1100 and proposed PCT for WeBOC is 2906.1100.1200 has fixed at US$30.00per Kg. —CT Report
Dastgir for promotion of trade within the region
collectorate of Adjudication-I issues 6 show cause notices KARACHI
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he Collectorate of Adjudication-I has issued six showcause notices against the different individuals/parties in which Rs 81, 689,500 of tax evasion is involved, during the last week of March, 2014, it is learnt here. Model Customs Collectorate of Port Muhammad Bin Qasim on March, 19 Oiled a Contravention Report against M/s Awan Enterprises and Friends Logistics (clearing agent and bonded carriers) on tax evasion of Rs 52,331,000. Subsequently, the Collectorate of Adjudication-I has issued show cause notice to the said parties on March 27. The items seized in the consignment on mis-declaration were 14 engines of Japanese manufactured vehicles; equipments included assemblies, clutches, brakes, mobile accessories (Chinese origin), 21,200 mobile phone sets (LG brand), 20 washing machines (China, Thailand manufactured), 2000 batteries of Q-mobile, 5 kg of stickers of mobile monograms of Blackberry and Samsung, 10 pieces of HD-SDI cameras, surveillance video recorders and three PABX consisting of total 30 lines. Furthermore, the Collectorate of Adjudication-I has also issued showcause notice against an individual namely Bismillah from Pishin on March 24. Pakistan Coast Guards on March 3 seized a non-duty paid Hino Truck bearing registration number, LSA-
— Exclusive Customs Today photo
Customs values of Spray paints, Menthol Crystal issued
Collectorate of Adjudication-I issues 5 ONOs ollectorate of Adjudication-I under the leadership of Collector Syed Shahanshah Hasnain has issued ﬁve Orders-in-Original (ONOs) during the last week of March against the individuals who were involved in the smuggling/non-payment of customs duty on tampered vehicles and a boat. Earlier, Collectorate of Adjudication-I had issued 12 ONOs.Through the 17 ONOs, the collectorate has given proper assistance to the government in order to collect and recover a hefty amount in terms of duties/taxes which will certainly increase the national revenue. The Adjudication Collectorate-I has issued an ONO against the smuggled Land Cruiser (Prado).The non-paid customs duty adds up to an amount of Rs 4,847,000. In another case, the Collectorate of Adjudication-I has issued ONO against the individual on smuggling ofToyota Land Cruiser whose non-paid customs duty adds up to Rs 9,171,300.The collectorate has issued an ONO against the conﬁscated smuggledWrangler Jeep on non-paid customs duty of Rs 4,545,000.The collectorate has issued an ONO against an individual who attempted to smuggle aToyota Surf Jeep, whose customs duty values at Rs 3,113,000. Furthermore, the Adjudication Collectorate-I has also issued Order-in-Original against the individual, boat owner, against his conﬁscated boat worth Rs 7,500,000 and diesel (HSD Oil) costing Rs 15,000,000. Duties/taxes involved on oil were Rs 4,000,000.The conﬁscated boat’s name was“AbuAbdullah”bearing registration no. 1201021. It is pertinent to mention here that the Collectorate of Adjudication-I has issued total 17 ONOs, worth Rs 130,718,000 in the month of March, 2014. —CT Report
Anti-smuggling wing, AFU seize smuggled items worth over Rs16m he Anti-SmugglingWing of the Model Customs Collectorate of Preventive under the vibrant leadership of Collector Syed MuhammadTariq Huda has seized the smuggling goods/contraband items worth Rs 15, 619,475. It includes non duty paid goods having evaded duties/taxes of Rs 3,364,384.While the Air Freight Unit (AFU) of MCC-Preventive has made 16 seizures worth Rs 1,038,192 at Jinnah International Airport during the previous month. Anti smuggling wing of MCC-Preventive has seized 110 kg of Charas worth Rs 6,600,000; 2,500 kg of rice (expired) and oneTEU container with registration number FLXU-201323-9 valued at Rs 200,000. FIR under CNS Act-1997 has been lodged against the culprits.The anti-smuggling wing has also seized 62,400 pouches of contraband items including 2 PP bundles containing 6 bags, 520 packets of Pan Parag and 61,880 pouches of One2-One gutka worth Rs 936, 000; 25 PP bundles
T — Exclusive Customs Today photo
ederal Minister for Commerce Khurram Dastgir has said that the incumbent government wants to promote trade with all neighbouring countries. He said that trade concessions will be given only on reciprocal basis. He said signiﬁcant progress has been made in talks with New Delhi. He expressed hope that further progress will be made after installation of new government in India. —CT Report
7741, market value of Rs 3,500,000 at RCD Highway, which was coming from Quetta. The Coast Guards also conOiscated smuggled goods valuing Rs 14,054,000. The conOiscated goods included 190 cartons of cigarettes, 20 bags of gutka, 60 cartons of ‘Taara niswar’, 22 cartons of ‘Hoot naswar’ and 90 tyres. The collectorate also issued show cause notice against an individual on seizure of foreign currency including $ 30,000; 9,460 Thai Baht and Rs 11,500 seized by Directorate General of Customs Intelligence and Investigation. Collectorate of Adjudication-I also served show cause notices to the individuals on the seizures made by Pakistan Customs of nonduty paid Range Rover Jeep whose customs duty stood at Rs 4,171,000; non-duty paid Toyota Surf Jeep whose customs duty stood at Rs 6,427,000; and non-duty paid Wrangler Jeep whose customs duty stood at Rs 4,695,000.
— Exclusive Customs Today photo
(18,750 yards) of Sintex Polyester Fabric worth Rs 932, 800; 26 bundles of ladies cloth weighing 1,928 kg (11,736 yards) worth Rs 899, 219; 50 containers (4,950 pieces) of foreign origin Star Track Digital LNB KU Signal Universal, NBU full HD 1080 P Model ST 320 Platinum. It has also conﬁscated 14 rolls of foreign origin synthetic
carpets worth Rs 389, 995.The anti-smuggling wing has also conﬁscated 30 PP bundles of foreign origin ladies cloth valuing Rs 750, 904; 15 sets of Samsung brand LEDTC sets of 40 worth Rs 768, 272. It has also seized 78 jute bundles containing assorted brand of liquor costing Rs 2,844,000 and 95 cartons containing motorcycle parts worth Rs 308, 285. AFU has seized smuggled liquor/ beer in 13 cases in which it conﬁscated 57 bottles of branded liquor costing Rs 57,000 and 12 cans of Beer worth Rs 1,200. It has also seized a consignment of smuggled mobile phones and mobile phone batteries in which it conﬁscated 33 cell phones and 33 batteries worth Rs 232, 960 and Rs 3,432 respectively. AFU has also seized, in 2 cases, smuggled digital cameras, USBs and packing material assorted in which it conﬁscated 190 digital cameras worth Rs 592,800; 1,400 USB (4GB8GB) worth Rs 109,200 and assorted packing material worth Rs 41,600. —CT Report
no new route inducted in SRo 121 irector Transit Trade Muhammad Javed Ghani has said that the grievances of All Pakistan Customs Bonded Carriers Association would be addressed soon. Denying the induction of any new route in the Statutory Regulatory Order (SRO) 121/2014 ofTransitTrade, Javed Ghani made it clear that the FBR has not yet introduced any new route in the SRO 121.“The routes are same as those which were previously practiced and notiﬁed under the Afghanistan PakistanTransitTrade Agreement (APTTA), 1965 and SRO 601(I)/2011 dated 13 June, 2011,” he added. He further said that the diversion of the containers en-routing transit trade would be observed through computerised system in SRO 121, which makes the system more transparent. He said that the grievances of the All Pakistan Customs Bonded Carriers Association have been sent to the FBR. —CT Report
APRIL 08 - APRIL 14, 2014
customs conﬁscates 1kg heroin
ISLAMABAD: Pakistan Customs has seized 1kg of heroin at International Mail Office, Chaklala Garrison, Rawalpindi, from a parcel booked for the UK during clearance of export parcels. The parcel comprised factory-sealed twelve tins of sweets (Multani Halwa) booked by a resident of Peshawar, for a resident of Birmingham, UK. Out of twelve of them, four contained heroin instead of sweets despite the fact that tins were factory-sealed. An FIR has been lodged against the consignee.
ANFimpoundsRs338m heroin,charas;13held nti Narcotics Force has recovered over 3 kg of heroin, 291 kg charas, 1.5 kg methamphetamine and 10,800 psychotropic tablets while arresting 13 drug peddlers. All the drugs combined were estimated to have a street value of over Rs 338 million. ANF has conducted seven operations in the provinces of Punjab, KPK and Sindh, said an oﬃcial of the ANF. An ANF team during Peshawar road check seized truck and recovered 280 kg charas, tactfully concealed in secret cavities of the vehicle and arrested two persons at the spot, both residents of Jamrud, Khyber Agency. ANF team at Karachi airport arrested a man and recovered 3 kg heroin, 10800 psychotropic tablets and 1.50 kg methamphetamine from his hand baggage. The arrested man was resident of Orangi town, Karachi.The drugs were tactfully concealed in a trolley bag.The accused was to travel from Karachi to Bangladesh by PIA ﬂight. On further investigation, his accomplice, a resident of Kemari, Karachi was also arrested near Gulshan-i-Iqbal, Karachi. In another case ANF Karachi intercepted a parcel at Fed-Ex oﬃce on Shahrah-i-Faisal in Karachi and recovered 440 grams of ﬁne quality heroin tactfully concealed in cloth.The parcel was sent by a resident of Sultanabad, Karachi and was destined for Cyprus. ANF Rawalpindi arrested a man, resident of Tramari Chowk, Islamabad and recovered 1.05 kg charas from his personal possession, while he was travelling on a motorcycle. The accused was arrested near main gate of Benazir Bhutto Hospital, Murree Road, Rawalpindi. ANF Lahore arrested two men and recovered 2.40 kg charas from their personal possession. The accused were arrested near Niazi Bus Stand, Band Road, Lahore. One of them belonged to Peshawar while the other was from Qasur. ANF Lahore, in another case, arrested three men and recovered 6 kg charas from their personal possession near Niazi Bus Station, Band Road, Lahore and recovered 1.2 kg of charas. —CT Report
govt to do away with tax exemptions in budget: Ishaq Dar ISLAMABAD
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inance Minister Ishaq Dar has said that the World Bank (WB) will give Pakistan $10.2 billion during the next Oive years under Country Partnership Strategy (CPS) 2015-19. He also reiterated the government’s commitment to do away with tax exemptions in the next budget. Dar made the assurance during a meeting with World Bank Group Managing Director (MD) Sri Mulyani Indrawati. The minister informed the WB’s top functionary that changes were being contemplated in the relevant tax laws to permanently eliminate the discretion of the Federal Board of Revenue (FBR) to issue special tax exemptions. He argued that these measures would lead to increase revenue generation, enabling Pakistan to spend more on development programmes. “The privatisation strategy is in place to provide a holistic framework for disinvesting public sector assets.” The minister said that good governance, transparency and zero tolerance for corruption remained the hallmark of the government in pursing the strategic partnership with the private sector in PSEs (public sector enterprises). The minister highlighted that macro-economic situation was improving as reforms were making progress, growth was picking up and inOlation was in single digits. Ishaq Dar informed the World Bank ofOicial about the steps taken to put the country’s economy back on track.
Foreign exchange reserves cross threshold of $10b: Dar he foreign exchange reserves of the country have crossed the threshold of $10 billion on March 31, 2014. The total liquid reserves stood at $10.072 billion. The net reserves with State Bank of Pakistan are $5.365 billion and the net reserves with the banks stood at $4.706 billion. The Finance Minister, Senator Ishaq Dar said that after repayment of power sector circular debt up to Rs. 500 billion in 45 days and strengthening of the value of Pakistan Rupee, the Government of PML (N) has fulﬁlled yet another commitment with the
changes are being contemplated in the relevant tax laws to permanently eliminate the discretion of the FBR to issue special tax exemptions
nation of shoring up of the FE Reserves to a comfortable level of US $ 10 billion by the end of March 2014. He said that a solid foundation for economic uplift of the country has been laid down and building of the foreign exchange reserves will bring in stability and strength in the economy. He said that Pakistan has an encouraging macro-economic framework and this will lead to enhanced conﬁdence in Pakistan by foreign investors, international community and institutions in energy and infrastructure projects. —CT Report He said the new government was pursuing a three-point priority agenda, focused on addressing the economy, energy and extremism. The minister thanked the ofOicial for her personal interest in Pakistan-related programmes viz CASA-1000 and the Dasu hydropower projects which are in the process of approval by the Board and clearance of two DPCs on March 19 by the operations committee which the MD herself chaired. The WB ofOicial while appreciating Pakistan’s economic policies said that the World Bank will help Pakistan in poverty alleviation and promoting shared prosperity for the people of Pakistan. She said Pakistan has an encouraging macro-economic framework and this will lead to enhanced conOidence in Pakistan by the international community and institutions. She also informed the Oinance minister that the World Bank will be
considering the Country Partnership Strategy (2014-19) for Pakistan on May 1, which reOlects the WB’s commitment to the country. She underlined that participation of the private sector in energy sector reforms will be a strong message to the foreign investors and one success in this regard will lead to another success. She hoped success for Pakistan in launching of Eurobonds in the international market and auction of spectrum licences. Meanwhile, Economic Affairs Division Secretary Nargis Sethi in a brieOing told Finance Minister Ishaq Dar that the World Bank is going to allocate the share of $10.2 billion for Pakistan under Country Partnership Strategy (2015-19). She said the Oinancial envelop for Pakistan, which was around $9 billion in the previous Country Strategy Partnership 2010-14, has now been proposed to be considerably enhanced to $10.2 billion, a senior ofOicial told. Dar was told that the World Bank Group (WBG) was preparing a new strategy for Pakistan, which will guide the engagement of its three institutions (World Bank, International Finance Corporation, Multilateral International Guarantee Agency) for the next Oive years and will be designed to focus on the twin goals of ending extreme poverty and promoting shared prosperity. Sethi said that during the consultations process over 30 meetings, the WBG team met more than 400 individuals from civil society organisations, media representatives, parliamentarians, political leaders, chief ministers and cabinet members, civil servants, academics, think tanks, youth groups, the private sector, and other local and international development partners.
APRIL 08 - APRIL 14, 2014
145 kg pangolin scales impounded at Islamabad airport
ISLAMABAD: Pakistan Customs has thwarted an attempt to smuggle 145 kg of pangolin scales from Benazir Bhutto International Airport, Islamabad to Hong Kong. Customs staff at the airport confiscated the pangolin scales from the baggage of two suspected Chinese passengers departing for Hong Kong. The Chinese passengers were allowed to proceed abroad after fulfilling formalities. According to estimates in international market value of seized pangolin scales is approximately $ 150,000.
he lower grade Customs officials are facing problems in parking their vehicles outside the Customs House. One of the Customs employees while sharing his views with Customs Today said that the ban on parking vehicles outside the Customs House has put an extra burden on their pockets, as the ban compels the Customs employees below Grade-16 to park their vehicles in a parking lot, located just opposite to the Customs House. “The Customs officials are paying Rs 30 to Rs 40 on daily basis in share of parking charges which makes the sum of Rs 900 to Rs 1200 extra at the end of the month,” he added. It is pertinent to mention here that around 300 to 400 lower grade Customs officials were parking their vehicles daily at parking lot, which on one hand increases the revenue of parking lot, while on the other hand puts an extra burden on the pockets of Customs employees. In this regard, the employees of Customs House have also written a letter to authorities concerned in which they have demanded allocation of a separate free parking zone for the lower cadre of Customs employees or announce for transportation allowance. It may be mentioned here that the Model Customs Collectorate of Preventive Collector Syed Muhammad Tariq Huda with a view of security concerns had imposed a ban on parking vehicles around Customs House, a month ago. —CT Report
FBRaskedtowithdraw 4pcwithholdingtax onscrappurchase akistan Steel Smelters Association has urged the Federal Board of Revenue to withdraw 4 per cent withholding tax on purchase of scrap and restore SRO 550 till June 2014 to enable the smelters to survive. Pakistan Steel Smelters Association Chairman Mian Muhammad Saeed while talking to Customs Today said that it has become diﬃcult for the steel smelters to survive in such circumstances where the smelters are running out of cost due to heavy taxation including 4pc WHT on purchase of scrap and 1pc turnover tax. Earlier the ratio of turnover tax was 0.5pc which has been revised to 1 per cent. In three provinces of Pakistan the rate of electricity tariﬀ is 12.20, sales tax is Rs 4 while fuel price adjustment is Rs 1.22 per unit.“In order to manufacture 1 tonne of billet we have to utilize 800 units of electricity,”he added. The chairman said that cost of a furnace running in Punjab is Rs 10 million per month which is forcing the furnaces to close down. More than 50 furnaces have been closed down and the remaining 132 units are on the verge of collapse. He urged the PM, CJP and Finance Minister to intervene to save the dying industry of steel smelting. —CT Report
deﬁanceofbindingdirectives:Fto awakensFBRchieftonegativetendency ISLAMABAD
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he Federal Tax Ombudsman (FTO) has written in to the FBR chairman, reminding him of the blatant violation of FBR's letter No-1 (337) S(TOII)/2013 by the Oield formations. Through the letter, the FTO Registrar urged the FBR chairman to look into the matter personally and redress the grievances of taxpayers against tax maladministration and curb the tendency of inaction and deOiance of FTO’s recommendations by the Oield formations of the FBR. The FTO Registrar has made a speciOic reference to the violation of the FTO recommendations vide order dated July 2, 2013 issued in C.No.164/LHR/ST(34)281/2013. The recommendations have not yet been implemented despite a lapse of almost 9 months although the department neither Oiled a review application nor any representation as such the recommendations attained Oinally but unfortunately, the recommendations have not yet been implemented. The FTO Registrar stated that “the situation is still bleak as frequent complaints are pouring in from the affected taxpayers/complainants and the advisors regarding indifference and inaction of the tax ofOices. UnjustiOied delay by the Oield formations in implementation of FTO recommendations where neither representation nor review petition is Oiled, detracts much of the conOidence of aggrieved taxpayers in the FTO mechanism for prompt redressal of their grievances, against tax maladministration. According to reports, fresh assessment cannot be made without prior implementation of the FTO recommendations and Oield formations of the FBR are bound to comply with recommendations in letter and spirit. However, FBR ofOicials are disobeying the binding instructions issued by their parent agency vide C No.1(337)S(TO-II)/2013 dated January 23, 2014. The FTO has also observed that the department must implement the FTO's recommendations within
the given timeframe unless it has Oiled a Review Application before the FTO. In case representation before President is Oiled, the implementation remains suspended for a period of 60 days. When Oindings/recommendations attain Oinality, then fresh assessment cannot be made without Oirst implementation of the recommendations. It is to be noted that earlier former FTO Dr Suddle in C No.164/LHR/ST(34)281/2013 recommended the FBR to submit details of sales tax refund cases, pending for more than one year across Pakistan, issue refund and monitor the conduct of IRS ofOicers. In his landmark order it is speciOically observed by the FTO that in any case the statute requires no proof of physical transfer of goods from supplier to buyer as a pre-condition for making input tax refund claim and blacklisting cannot be made effective retrospectively. Findings of the FTO further states "the complainant contends that all the required supporting documents were Oiled well in time which was evident from the fact that after receipt of the supporting documents the department started veriOication in the year 2001. The complainant was not served
Field formations of the FBR are bound to comply with Fto orders in letter and spirit
with a single notice intimating deOiciency in the documents Oiled nor was his explanation sought on any aspect pertinent to the claims. On 17.10.2011 department informed that in absence of supporting documents the refund claims had become time-barred. The complainant Oiled a W.P 9532/2012 in the High Court, who directed the FBR to pass a speaking order after observing that the rejection letter was not a speaking order and was in violation of Section 24A of the General Clauses Act 1897 and Article 10A of the Constitution. In compliance with the High Court directions the dept passed an order dated May 18, 2012, clarifying that any question regarding expiry of limitation of time to Oile supporting documents did not arise. The complainant contended that after reOilling of the documents, the ofOicials concerned started approaching him with the demand for illegal gratiOication to dispose of the refund claims. The FTO recommended FBR to ensure that due refund/compensation is promptly issued as per law with details of sales tax refund cases pending for more than one year across Pakistan and keep the conduct of ACIR and LDC under watch, FTO order added.
Michael to visit Belgium to tap business opportunities KARACHI
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ederal Minister for Ports and Shipping Kamran Michael will visit Belgium in April. He is scheduled to meet Belgian oﬃcials and business leaders to discuss a number of opportunities and options of bilateral trade and co-operation in diﬀerent ﬁelds. Pakistan plans to sign development projects worth billions of dollars with Belgium in the ﬁelds of marine education, sea bourn trade, ﬁshing and ports development.The Federal Minister has held a detailed meeting with Belgian Ambassador to Pakistan Peter Claes and discussed a number of business
— Exclusive Customs Today photo
Customs oﬃcials facing parking problems
opportunities. The minister has also discussed some projects with Prime Minister Nawaz Sharif, likely to be initiated with the support of Belgian government.The Prime Minister and other relevant ministries and oﬃcials have also been taken into conﬁdence over the projects. The federal minister will have a ﬁve-day oﬃcial trip to Belgium where he would sign a memorandum of understanding with the Belgian authorities.The ministry has prepared its MoU to be signed with the Belgian authorities and it has been vetted by relevant oﬃcials as well. Kamran Michael is planning to enhance ﬁshing trade with Belgium apart by getting technical assistance from the country to upgrade Gwadar port. He will visit three
Belgian sea ports during his stay in the country. Earlier European Union had slapped a ban on the export of ﬁsh from Pakistan in 2007, but it has now been lifted. Michael wants to enhance the ﬁsh export to European countries, especially Belgium.“We are hopeful to achieve our set target,” he said.The minister has also been eyeing some 100 scholarships from Belgium government for Pakistani marine cadets and technical staﬀ to boost their capabilities and skills. "We will ask Belgium to provide Pakistan with needed infrastructure assistance and expertise to convert our marine academy into a marine university," Kamran Michael said, adding that there is no marine university in the entire region of South Asia.
APRIL 08 - APRIL 14, 2014
LtBA elects new oﬃce bearers
LAHORE: Lahore Tax Bar Association has elected its new office bearers including President, Vice President, General Secretary, Finance Secretary and Joint Secretary. Ayesha Qazi has been elected President securing 691 votes. Nouman Yahya has been elected Vice President with 815 votes. Maunum Sultan has been elected General Secretary with 871votes. Shakeel Basra has been elected Finance Secretary with 667 votes, while, Ahmad Kamal has been elected Joint Secretary with 715 votes.
he daily aﬀairs of Input-Output Coeﬃcient Organisation are badly aﬀected due to the non-transfer of powers delegated to IOCO in the SRO issued by Federal Board of Revenue in the year 2012, it is learnt here. Sources, on condition of anonymity, told Customs Today that the FBR in the year 2012 had decided to bring all major activities including survey, evaluation and assessment of units/sectors under one-roof i.e. IOCO. However, after passing of two years of time no such move has yet been materialised or implemented.“Most of the staﬀ including high oﬃcials of IOCO is still depending on the information and data provided by the Model Customs Collectorates of Appraisement East, West and Port Muhammad Bin Qasim,”they added. They further informed that the Appraisement Collectorates were provided data and requisition to IOCO about performing survey of any unit/sector in term of its production. However, the SRO issued by FBR in 2012, conferred powers to IOCO to execute entire process by itself as a separate body. It is pertinent to mention here that the FBR has already elaborated the functions and priorities of IOCO in the year 2012. —CT Report
Show cause notice sent for aircraft spare parts akistan Customs has seized spare parts of aircraft and computer servers brought into the country without paying due customs duties.The private airline responsible for bringing the consignment from Dubai has been issued notice by the authorities. Customs seized the goods at Karachi airport.The consignment was brought from Dubai aboard a ﬂight of the Shaheen Air International. Had the consignment been imported in a proper manner, the importer would have paid about Rs 1 million in duties. A show-cause notice issued to the airline by Additional Collector Abdul Basit Ch. that spare parts of aircraft and other goods illegally brought in by the ﬂight from Dubai were seized. —CT Report
pRAL decision aﬀects pRA operations
Qutab approaches Bajwa for probe into oﬃcers’termination
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he Punjab Revenue Authority (PRA) has formally approached FBR Chairman Tariq Bajwa, requesting inquiry into the termination of senior ofOicers of Pakistan Revenue Automation Limited (PRAL) which have been affecting the operations of the PRA and Punjab Excise & Taxation adversely. In a letter to FBR Chairman Tariq Bajwa, PRA Chairperson Iftikhar Qutab regretted that the services of PRAL (Lahore) Senior Manager (Operations) Malik Waqar Safdar had been suddenly terminated. It is to be recalled that earlier the PRA through a letter had requested the PRAL Chief Executive OfOicer not to (one-sidedly) disturb the manpower arrangements already in place or being put in place under the PRAL's contract with PRA (and Punjab Excise & Taxation Department) without taking PRA/Punjab government into prior conOidence so that continuity in the performance of PRAL's contractual obligations with PRA/Punjab government may not unnecessarily suffer. Iftikhar Qutab said that under clause (4.1) of the Contract signed between PRA and PRAL, the PRAL was under obligation to employ and provide such qualiOied and experienced personnel as are required to carry out the contractual services to PRA/Punjab government. He has been working with PRA right from the Oirst day of the implementation of contract between PRAL and PRA; he started work for PRA even prior to the signing of the agreement towards software development accommodating the instant and future needs of PRA's tax management regimes. He also worked
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he Federal Board of Revenue has provisionally collected over Rs209 billion during March 2014 against the target of Rs215 billion, recording a shortfall of Rs6 billion. However, the tax bosses are conﬁdent that the monthly revenue collection will stand in the range of Rs215 to 220 billion on compilation of ﬁnal ﬁgures. The provisional revenue collection during March 2014 will cross over Rs 209 billion. The oﬃcials expressed their optimism that once the FBR would surpass Rs215 billion, it would manage to amass the assigned revenue collection target. The FBR has provisionally collected Rs1,680.3 billion during July-March (2013-14) against Rs1,354 billion during corresponding period of previous ﬁscal, showing a growth of Rs326.3
nternational Monetary Fund has expressed strong reservations on Prime Minister’s investment incentive package. IMF’s latest report states that its staﬀ has strong reservations regarding the Prime Minister’s investment incentive package introduced in December 2013. This tax amnesty runs counter to eﬀorts for strengthening tax administration. In contrast to this view, Pakistani authorities believe that the package will provide incentives for new investment in key productive sectors, and will bring new taxpayers into the tax net. Nonetheless, they will refrain from granting new amnesties and are working to strengthen their anti-money laundering (AML) framework, which could help compensate. IMF’s reservations on the package include the fact that the package seeks to improve the investment climate through reducing tax scrutiny. Therefore, the package opens another loophole in the system in addition to the ones that already exist for remittances and equity stock investment, and raises potential money laundering risks. The immunity from routine audit hinders the selfassessment process, and the amnesty—entailed by waiving penalties and interests—is likely to be detrimental in improving compliance and collections as taxpayers will develop an expectation of future immunities. There are some factors that mitigate the negative impact of the package. The authorities consider this scheme as oneoﬀ, and will refrain from issuing another amnesty during the program period. The immunity from routine audit does not extend to cases where noncompliance is detected from other sources.
pRA hopes the tax authorities will take favourable ﬁnal decision in the matter expeditiously on the development of Restaurant Invoice Monitoring System (RIMS) which is likely to be launched by Punjab government in near future. The letter read that the PRA is of the Oirm view that termination of services of Safdar at this critical juncture of the evolutionary development of automation of Punjab's taxation and enforcement work is not beOitting and therefore, deserves to be reviewed at impartial hands. It is rather more appropriate if the FBR chairman provides Mr Safdar with an opportunity of personal hearing and then decides the future of the PRAL's ofOicer. The PRA hoped that tax authorities will take
favourable Oinal decision in the matter expeditiously so that existing uncertain state affairs (perhaps resulting from some "personal whims" from some quarters) may be ended at the earliest. Iftikhar Qutab stressed that the PRA (understandably other concerned departments as well) needs continuity of his services from PRAL's side. He expressed that the PRA was optimistic about the FBR chairman’s gracious kindnesses towards helping the PRA to succeed in its mission to productively establish services-related VAT-type sales taxation in Punjab on sustainable and progressive lines.
FBR collects Rs209b against Rs215b in march
ImF expresses reservations on pm’s tax incentive scheme
— Exclusive Customs Today photo
Non-transfer of powers aﬀecting aﬀairs at IOCO
billion. Now, the FBR is required to collect Rs794.7 to meet the budgetary target of Rs2,475 billion by the end of current ﬁscal. To-date, the FBR has provisionally collected Rs 1,680.3 billion during July-March (2013-14) against revised annual target of Rs2,345 billion. In order to meet the revised target of Rs 2,345 billion, the FBR has to collect Rs 664.7 billion by end of current ﬁscal. The downward revised revenue collection target for last quarter (April-June) 2013-14 is Rs775 billion. The revised revenue collection target for April 2014 is Rs196.3 billion, May 2014 Rs219.5 billion and revised revenue collection target for June 2014 is Rs359.2 billion. Break-up of revenue collection during July-March 2013-14 revealed that the FBR has provisionally collected Rs798 billion as direct taxes, Rs517.3 billion sales tax, Rs199 billion as Federal Excise Duty (FED) and customs duty collection amounted to Rs166 billion.
www.customstoday.com APRIL 08 - APRIL 14, 2014
— Exclusive Customs Today photos
We hA pL eFFoRt WhIch W pA
Ave AchIeved gSp LuS AFteR hectIc tS And LoBBYIng h WILL go A Long WAY In BooStIng AkIStAnI expoRtS
APRIL 08 - APRIL 14, 2014
hile terming GSP plus status as great achievement of the incumbent regime, Member of NA Panel on Commerce Alhaj Shah Jee Gul Afridi said that clinching of this status would usher new era of growth by boosting industrialization and creating job opportunities in Pakistan. The European Union (EU) had granted Generalized System of Preference (GSP) plus status to Pakistan from January 1, 2014 by waiving off duties which is expected to increase exports in the range of $1 billion per annum. “We have achieved GSP plus after hectic efforts and lobbying which will go a long way in boosting Pakistani exports,” the member of National Assembly Standing Committee on Commerce Gul Afridi said in an exclusive interview with Customs Today. He added that the GSP plus also showed the level conOidence being posed by the international community on the incumbent regime. “Look at the scope of GSP status, which is vast, beneOits are enormous and it has been certainly achieved after hectic efforts and lobbying that will go a long way in boosting the local industry and national exports,” he added. The member of NA Panel said that China had bought two sick textile units lying idle in Karachi since long, adding that it was expected that now quality clothes would be manufactured there which would result into increasing exports. Dwelling upon industrial development and boosting exports, he said that the government was introducing revolutionary policies which would yield positive results for the economy as well as providing bene-
Oits to the business class in months ahead. “I, myself as an automobile trader, am quite conOident the policies of government will beneOit the businessmen,” he maintained. He praised the work done by the Commerce Ministry and said that the government was working on regional connectivity especially with Central Asian Republics (CARs). “Certainly, we will strive hard for an agreement with the Economic Cooperation Organisation (ECO) to facilitate such an arrangement in the near future,” he envisioned, adding that such an agreement would materialise the dream for boosting exports of agriculture products to CARs into a reality. Afridi expressed his satisfaction over the performance of the NA Standing Committee on Commerce, saying that the committee had been constituted by merging two committees - commerce and textile, but now again it was separated and the Commerce Committee would function with more vigor and enthusiasm. He claimed that the government policies had resulted in building conOidence of the investors due to which overall revenue collection had been increased. “Look once you are willing to go all out and control the damage through multi-pronged strategy, you deOinitely get the conOidence revived and the government is doing the same,” he lauded. Talking about Gwadar, the lawmaker from Fata said that Gwadar was being linked through railways track with Hawailian. He informed that survey was completed for Kashgar-Gwadar railways link, adding that China would extend all-out support and assistance for the development of Gwadar. Gul Afridi claimed that said that if the government reformed the tax system and imposed right kind of taxes there would be no need for obtaining loans from IMF or any other financial institutions.
the goveRnment WILL LInk gWAdAR WIth hAWAILIAn thRough RAILWAY tRAck AS chInA IS extendIng ALL-out SuppoRt And ASSIStAnce FoR the deveLopment oF the poRt, SAYS memBeR oF nAtIonAL ASSemBLY StAndIng commIttee on commeRce.
APRIL 08 - APRIL 14, 2014
Founder & Chairman Zulﬁqar Ali Editor Rahil Yasin email@example.com For advertising & subscription firstname.lastname@example.org +92-322-3370002 www.customstoday.com Phones: 042-35781643-4, Fax: 042-35781645 Address: 627, Siddiq Trade Centre, Gulberg, Lahore
Well done Finance minister, but what next?
n the aftermath of generous foreign inﬂows from multilateral creditors such as release of third IMF tranche and bilateral donor Saudi Arabia, Pakistan’s Finance Minister Ishaq Dar has successfully fulﬁlled his promise to cross foreign currency reserves a psychological barrier of $10 billion mark on March 31, 2014. Now the next target of the incumbent regime is to further build up the foreign currency reserves by pouring $4-5 billion more into the kitty of State Bank of Pakistan during this ongoing fourth quarter (April-June) period by ensuring $600 million to $650 million from Etisalat, launching of Eurobond worth $500 million, auction of 3G and 4G technology and restoration of program loans from the World Bank and Asian Development Bank to the tune of $1.5 to $1.7 billion. With thumping mode, the Finance Ministry had announced last week that the foreign exchange reserves (FER) crossed the threshold of US $10 billion on 31st March 2014. The total liquid reserves stood at US $10.072 billion. The net reserves with State Bank of Pakistan are US $5.365 billion and the net reserves with the Banks stood at US $4.706 billion. The PML (N) government, according to Finance Minister Ishaq Dar, had fulﬁlled yet another commitment with the nation of shoring up of the FER to a comfortable level of US $10 billion by the end of March 2014. Although, the building up of foreign currency reserves are important for restoring conﬁdence of international community as well as investors about the macroeconomic strength but there are many other areas where the government will have to work hard to sustain these gains in months and years ahead. Without addressing the core problems being faced by the country in shape of structural weaknesses such as ensuring competitiveness for boosting exports, removing bottlenecks to ensure eﬃciency, bringing all taxable income into the net by broadening of narrowed base, the country’s diﬃculties cannot be overcome by improving any single indicator. Pakistan will have to adopt a holistic approach to resolve the lingering macroeconomic issues on permanent basis. Pakistan’s economic performance since independence had shown mixed results, ﬂuctuating from high growth to bottom growth after every few years. The main reason behind this un-sustained growth trajectory was unwillingness of powerful elites and policy makers to pursue genuine reforms that aimed at removing bottlenecks to run the economy as most important part of improved governance structure. By looking back to the history, the country had achieved higher growth when it received more foreign inﬂows after siding with international powers but all gain evaporated with blink of an eye in months after witnessing any shock or it disappeared within one or two years because of inability to cope with nonfavourable external position. When inﬂows of dollar dried up, the economic gains disappeared and this will continue to happen until and unless we strengthen our economy by treating it as top most priority of not only the government but of whole nation to achieve growth and prosperity on long and sustained basis.
more challenges ahead ISLAMABAD
he FBR will have to collect Rs 772 billion in last quarter (April-June) period in order to achieve revised tax collection target of Rs 2,345 billion on June 30, 2014 which will be in line with the IMF’s envisaged target. Although, the government has not yet ofOicially revised downward the tax collection target of Rs 2,475 which was approved by the Parliament. If the government sticks to the initially approved tax collection target of Rs 2,475 billion then the FBR will have to collect Rs 902 billion in April-June period of 2014. So far the FBR had collected Rs 1,573 billion during Oirst nine months (JulyMarch) period of the current Oiscal year against a collection of Rs 1,354 billion in the same period of the last Oinancial year,
registering a growth by over 16 percent in the ongoing FY 2013-14. The FBR has collected Rs 210 billion in March as provisional Oigures and some few billions more might be poured into the national kitty in the next few days. During the Oirst nine months, the FBR collected Rs742 billion in sales tax, Rs119 billion or 19% above the previous year. The IMF had assessed that the FBR would collect Rs708 billion in sales tax. The FBR surpassed IMF’s projections as it has blocked over Rs90 billion genuine tax refunds, according to sources. The tax authorities collected Rs597 billion in income tax, up by Rs52 billion or almost one-tenth of last year’s collection. The IMF had estimated Rs591 billion income tax collection. However, on account of customs duties, the FBR’s collection fell even behind the IMF’s conservative assessments. The FBR collected Rs170 billion
IMF accurately estimated that the FBR would collect Rs1.567 trillion in nine months
in custom duties, Rs8 billion or 5% less than the last year’s collection. The IMF has estimated Rs178 billion customs duties. The federal excise duties collection stood at Rs109 billion against Rs83 billion from last year, showing a 31% growth. Now the FBR has adopted the policy to scrutinize withholding collection of banking sector by conducting special audit with expectation that they would Oind out billions of rupees demand and would be able to recover out of this created demand before June 30, 2014. The collection was Rs210 billion short of the target, on the basis of Rs2.475 trillion target, approved by the Parliament in June last year. The IMF has already downward revised the annual target to Rs2.345 trillion. They had accurately estimated that the FBR would collect Rs1.567 trillion in nine months.
APRIL 08 - APRIL 14, 2014
dastgir for eﬀorts to increase exports
LAHORE: Federal Minister for Commerce Khurram Dastgir has said that Trade Development Authority of Pakistan must make concerted efforts not only to increase exports but also for making the organisation in real sense a contributing factor for trade promotion. During a detailed briefing on TDAP activities and challenges he directed the officials to make the organization more result-oriented by making all out efforts.
Abolishing exemptions, broadening tax base
Pakistan to fetch Rs 170b additional taxes akistan has made commitments with the International Monetary Fund to abolish score of tax exemptions and take other measures for broadening the tax base in order to fetch Rs 150-170 billion additional taxes in the budget 2014-15.The tax rates will not be increased but existing exemptions will be abolished under this proposed plan. IMF has stressed that additional revenue through broadening of tax base, including SRO elimination, would increase at least 0.5–0.75 per cent of GDP per year over the next two years in order to achieve the ﬁscal consolidation targets without increasing tax rates. Under $ 6.64 billion bailout package in shape of Extended Fund Facility (EFF), the government has given written commitment to the IMF about abolishing tax exemptions to the tune of 0.35 per cent of GDP in the upcoming Finance Bill.The Finance Bill 2014 will be laid down before the Parliament for ﬁnal approval. IMF in its latest report reveals that Pakistani authorities have begun to prepare the policy actions needed to further reduce the budget deﬁcit in the FY 2014-15. One key component will be to broaden the tax base via a plan to eliminate many Statutory Regulatory Orders (SROs). FBR has completed analysis of the ﬁscal cost of all SROs, and has started developing plans to either eliminate or incorporate them into legislation. For FY 201415, FBR has so far identiﬁed SROs for elimination estimated to yield about 0.35 per cent of GDP, but more is expected once it ﬁnalizes the consultations with the private sector. There is mixed progress on tax administration.The authorities have developed and are implementing their plans to strengthen tax administration for sales, customs and excises.They also continue with the implementation of their plan to broaden the income tax base and are on track to achieve the target, and recently published a tax directory of current Parliamentarians— at the federal and provincial levels—with the objective of fostering a culture of tax compliance. However, they also issued an investment incentive scheme which staﬀ views as a tax amnesty. The key developments include broadening the income tax base.With 67.8 thousand notices issued as of end-January to individuals identiﬁed as having signiﬁcant economic activity but not paying income tax, the authorities are on track to meet their objective of 75 thousand notices. They are moving forward with the delivery of the notices, and eﬀorts seem to be bearing fruit. So far, about 6,500 individuals have ﬁled their taxes as a result of the program. On other tax administration eﬀorts, the authorities plan to: (i) strengthen sales, customs and system, by elimination of ﬁctitious or inactive registered ﬁrms; (ii) expand the sales tax net system, by elimination of ﬁctitious or inactive registered ﬁrms; (iii) expand the sales tax net excise taxes including a series of initiatives like clean-up of the sales tax registration gap analysis for major sectors; (vi) electronically monitor and track goods, particularly cigarettes, to avoid tax fraud; (vii) improve customs clearance system (WeBOC) — including an independent audit; (viii) make the risk management unit operational; (ix) address customs under-invoicing by developing valuation rulings for further commodity groups; (x) mitigate transit risks from transit trade to Afghanistan through an integrated transit trade management system; and (xi) strengthen the post clearance audit unit. —CT Report
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: email@example.com
Importers demand revisiting of valuation guideline of base oil KARACHI
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he importers have demanded the Chief Collector of Appraisement-South Nasir Masroor to revisit the valuation guideline of base oil (lubricant) and resolve the issue of its trade. Sources informed Customs Today that a delegation of importers met with the Chief Collector Nasir Masroor at his ofOice and expressed their reservations over the issuance of valuation guideline of base oil. They termed the issuance of valuation guideline an unjustiOied act of authorities concerned with the trade. It is pertinent to mention here that Pakistan Customs through a valuation guideline issued on 11 March, 2014 had categorized all forms of base oil (lubricants) at same rate. The importers were of the view that there was a vast difference in its quality internationally. It was categorized into two different groups i.e. SN500 and N500. They further said that both groups are different to each other in terms of density, viscosity, index, Olash paints, pour paints, kinematic viscosity and overall appearance. They further informed this scribe that the Customs ofOicials were also
following the same international import data values of base oil for the last three months and recently the Customs authorities uniOied their import values, which will deOinitely harm the import of Oine quality oil,
as both the Oine and low quality of base oil will be imported at same value. Sources informed that the Chief Collector assured the importers for the redressal of their grievances.
transportersawaitingresolutionofparkingissueatkpt To, Kamran Michael Federal Minister for Ports & Shipping, Islamabad Respected Sir, We would like to draw your kind attention towards the grievances faced by transporters’ community regarding allotted parking land in the jurisdiction of Karachi Port Trust (KPT). It is to inform you that the grievances of the transporters have not yet been addressed by the authorities concerned despite the assurances given by you and the Federal Minister for Finance to the transporters’ bodies. Through this letter, we would like to inform you further that the burning issue pertaining to the allotted land to transporters for truck stand in the jurisdiction of KPT is not yet resolved. The KPT State Department has not yet taken any step against the land grabbers, who encroached the KPT land for last many years or so. It is pertinent to mention here that the transporters had observed 11-day strike in November,
2013 due to that issue, which still persists and the authorities concerned have not yet taken any considerable action in this regard. Although, the Federal Minister for Finance had assured the redressal of the transporters’ issue during a meeting with the heads of different transporters’ bodies at Governor House, Karachi in the month of November, 2013; but no appropriate steps have yet been taken by the authorities concerned. We make humble appeal before you to take strict action against the KPT State Manager, as he is allegedly patronizing the land grabbers and took billions of rupees as bribe. We, the transporters, hope that the Ministry of Ports and Shipping will take suitable action in order to resolve the prevailing issue of the transporters. Yours sincerely, Khursheed Alam Khan, Vice President, Transporters of Goods Association (TGA), Karachi
APRIL 08 - APRIL 14, 2014
pakistan Railways procures 25 freight locomotives
LAHORE: Ministry of Railways has informed that improvement in availability of locomotives through special repair of existing and procurement of new ones have enabled the department to increase their number from 8 to 25 locomotive only for freight, thereby resulting in increase of daily departure of freight train from Karachi from almost nil to three trains. Most of the resources are being allocated to freight sector which has produced encouraging results.
FBRannouncestransfersofGrade17-19PCSoﬃcers Investigation, FBR, Islamabad. Rizwan Basharat of Pakistan Customs Service (BS-18) has been transferred from the post of Deputy Director, DOT, Lahore to the post of Deputy Director, Directorate General of Intelligence & Investigation, FBR, Islamabad.The posting order of the oﬃcer vide Notiﬁcation No. 2462-C-II/2013 dated 09-10-2013 stands cancelled ab initio. Shalra Khan of Pakistan Customs Service (BS-18) has been transferred from the post of Deputy Director, Directorate of Intelligence & Investigation-FBR, Karachi to the post of Deputy Collector, Model Customs Collectorate, Islamabad. Abbas Ali Babar of Pakistan Customs Service (BS-18) has been transferred from the post of Deputy Director, Directorate of Intelligence & Investigation-FBR, Lahore to the post of Deputy Director, Directorate of Input Output Coeﬃcient Organization, Lahore. Ataullah Shabbir of Pakistan Customs Service (BS-18)
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ederal Board of Revenue has announced the transfers of 25 oﬃcers of Pakistan Customs Service including eight Grade-19 oﬃcers, seventeen Grade-18 oﬃcers and four Grade-17 oﬃcers. FBR has issued a notiﬁcation in this regard announcing the transfers of the following oﬃcers: Wajid Ali of Pakistan Customs Service (BS-19) has been transferred from the post of Additional Director, Directorate General of CustomsValuation, Karachi to the post of Additional Collector, Model Customs Collectorate of Appraisement (East), Karachi. Muhammad Mohsin Raﬁq of Pakistan Customs Service (BS-19) has been transferred from the post of Additional Collector, Oﬃce of the Chief Collector Customs (Central), Lahore to the post of Additional Director, Directorate General of Intelligence & Investigation, FBR, Islamabad. Masood Ahmed of Pakistan Customs Service (BS-19) has been transferred from the post of Secretary, Federal Board of Revenue Headquarters (Hq), Islamabad to the post of Additional Collector, Model Customs Collectorate, Islamabad. Munib Sarwar of Pakistan Customs Service (BS-19) has been transferred from the post of Additional Director, Directorate of Intelligence & Investigation-FBR, Faisalabad to the post of Additional Director, Directorate of Post Clearance Audit, Lahore. Muhammad Ismail of Pakistan Customs Service (BS-19) has been transferred from the post of Additional Collector, Model Customs Collectorate, Faisalabad to the post of Additional Director, Directorate General of Intelligence & Investigation, FBR, Islamabad. Saira Agha of Pakistan Customs Service (BS-19) has been transferred from the post of Additional Collector, Collectorate of Customs Adjudication, Lahore to the post of Additional Collector, Model Customs Collectorate, Faisalabad. Nadeem Ahsan of Pakistan Customs Service (BS19) has been transferred from the post of Additional Collector, Collectorate of Customs (Adjudication-I), Karachi to the post of Additional Director, Directorate General of Intelligence & Investigation, FBR, Islamabad. Ziaullah Shams of Pakistan Customs Service (BS-19) has been transferred from the post of Secretary, Federal Board of Revenue (Hq), Islamabad to the post of Additional Director, Directorate General of Intelligence & Investigation, FBR, Islamabad.
dr Rizwan Salabat
Usman Bajwa of Pakistan Customs Service (BS-18) has been transferred from the post of Deputy Director, Directorate of Internal Audit (Customs), Lahore to the post of Deputy Collector, Model Customs Collectorate of Preventive, Lahore. Yousaf Haider Orakzai of Pakistan Customs Service (BS18) has been transferred from the post of Deputy Collector, Model Customs Collectorate of Appraisement (East), Karachi to the post of Second Secretary, Federal Board of Revenue (Hq), Islamabad. Rizwan Salabat of Pakistan Customs Service (BS-18) has been transferred from the post of Deputy Collector, Model Customs Collectorate of Appraisement, Lahore to the post of Deputy Director, Directorate General of Intelligence & Investigation, FBR, Islamabad. Naveed Illahi of Pakistan Customs Service (BS-18) has been transferred from the post of Deputy Collector, Model Customs Collectorate, Islamabad to the post of Deputy Director, Directorate General of Intelligence & Investigation, FBR, Islamabad. Syed Imran Sajjad Bokhari of Pakistan Customs Service (BS-18) has been transferred from the post of Deputy Director, Directorate General of Intelligence & InvestigationFBR, Islamabad to the post of Second Secretary, Federal Board of Revenue (Hq), Islamabad. Muhammad Asif of Pakistan Customs Service (BS-18) has been transferred from the post of Deputy Collector, Model Customs Collectorate, Islamabad to the post of Deputy Director, Directorate General of Intelligence &
(BS-18) has been transferred from the post of Deputy Director, Directorate of Intelligence & Investigation-FBR, Quetta to the post of Deputy Director, Directorate General of Internal Audit (Customs), Islamabad. Modassar AhmadTirmizi of Pakistan Customs Service (BS-18) has been transferred from the post of Deputy Director, Directorate General ofTraining & Research (Customs), Karachi to the post of Deputy Director, Directorate General of Intelligence & Investigation, FBR, Islamabad. Mahwish Shah of Pakistan Customs Service (BS-17) has been transferred from the post of Assistant Collector, Model Customs Collectorate of Appraisement (East), Karachi to the post of Assistant Collector, Model Customs Collectorate of Appraisement (West), Karachi. Ali Ijaz of Pakistan Customs Service (BS-17) has been transferred from the post of Assistant Director, Directorate of Intelligence & Investigation-FBR, Karachi to the post of Assistant Collector, Oﬃce of the Chief Collector of Customs (Enforcement), Karachi. Tausif Aman of Pakistan Customs Service (BS-17) has been transferred from the post of Assistant Director, Directorate of Input Output Coeﬃcient Organization (South), Karachi to the post of Assistant Collector, Model Customs Collectorate, Gwadar. Inamullah of Pakistan Customs Service (BS-17) has been transferred from the post of Assistant Collector, Collectorate of Customs (AdjudicationII), Karachi to the post of Assistant Director, Directorate General of Intelligence & Investigation, FBR, Islamabad.
Abbas Ali Babar has been transferred from the post of Deputy Collector, Oﬃce of the Chief Collector (Enforcement), Karachi to the post of Deputy Collector, Model Customs Collectorate of Appraisement (East), Karachi. Aftab Ullah Shah of Pakistan Customs Service (BS-18) has been transferred from the post of Deputy Director, Directorate of Intelligence & Investigation-FBR, Peshawar to the post of Second Secretary, Federal Board of Revenue (Hq), Islamabad. Ghulam Hyder Mahesar of Pakistan Customs Service
kARAchI: Junaid Shekha, Chairman SRC, ICAP presenting crest to Shahid Hussain Asad, FBR Spokesperson.
kARAchI: Acting President of KCCI Muhammad Idrees presenting memento to Minster for Trade and Industries Khurram Dastgir during his visit to KCCI. — Exclusive Customs Today photos
APRIL 08 - APRIL 14, 2014
vehicles cleared under amnesty scheme yet to get registration books
LAHORE: The Excise and Taxation authorities have failed to issue original registration books to owners of more than 30,000 non-custom paid vehicles, cleared under amnesty scheme announced by the previous government. The owners of these vehicles have expressed concerns over the delay in the issuance of original registration books for their respective vehicles despite clearance. However, the authorities argue that since the matter was sub judice, they could not take any action in this regard until a final verdict was declared of the court.
St (Amend) ord: FBR allays cng price hike concerns T he Federal Board of Revenue (FBR) clariﬁed that recently issued Presidential SalesTax (Amendment) Ordinance 2014 will not result in an increase in the prices of CNG as standard rate of 17 percent General Sales Tax (GST) is applicable on CNG stations. It is to be noted that on March 23, the government promulgated SalesTax Amendment Ordinance, 2014 to charge 17 percent sales tax, covering net‘value addition’ tax on Compressed Natural Gas (CNG) stations on the basis of sale price ﬁxed by Oil and Gas Regulatory Authority (Ogra).Therefore, the CNG association said this move would increase the CNG prices, as government imposed additional 17 percent tax on it. However, the FBR dispelled the impression of any increase in CNG prices.“No, CNG prices will not increase, as FBR does not impose any new tax on it”, said Shahid Hussain Asad, Member Inland Revenue and Oﬃcial spokesperson for FBR. He said that the FBR would not get any additional revenue as a result of the promulgation of the SalesTax Amendment Ordinance, 2014. Meanwhile, the FBR has issued public notice in this regard.The public notice reads as,“the eﬀect of this Ordinance (Presidential) is that sales tax at the standard rate of 17pc shall be charged and collected from CNG stations through their gas bills by the gas distribution companies. It is clariﬁed that no new tax has been imposed, but only the mode of collection has been changed under this Ordinance, to ensure compliance and facilitate administration of the tax”. Similarly, the notice stated,“It is therefore, speciﬁcally clariﬁed that the rate and amount of sales tax payable on CNG remains the same as
already notiﬁed by OGRA through its notiﬁcation dated December 17, 2013.Thus, there will be no change in the consumer price of CNG or the amount of sales tax collected from the consumers.The price of CNG shall remain the same as already notiﬁed by OGRA”. It is to be mentioned here that Oil and Gas Regulatory Authority (Ogra) on
December 17, 2013 had issued notiﬁcation of new prices of CNG after the judgment of Supreme Court of Pakistan.The apex court had ordered suspension of additional 9pc GST on CNG and impose standard rate of 17pc on it. According to Ogra’s notiﬁcation pertaining to new prices of cheap fuel (CNG) for above three million vehicles, new price of CNG for
Region-I is Rs74.25/kg while Rs66.14/kg for Region-II. New prices have been notiﬁed as per the judgment of Supreme Court.The OGRA decreased the prices up to Rs1.23 per kg. The FBR has only ensured that the net value addition should not increase without causing revenue loss to the national exchequer. —CT Report
“You may call your lawyer, but anything you say, may be held against you.”
APRIL 08 - APRIL 14, 2014
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
Published on Apr 7, 2014
Pakistan’s first in-depth newspaper that presents balanced news reports, analysis and reviews regarding Customs, Federal Board of Revenue (F...