Sources toldBusiness Recorder here on Monday that the last Collectors of Customs conference discussed many issues including recovery of arrears, sales tax and withholding tax collection at import stage and measures to increase revenue collection in the remaining period of 2016-17. However, the authorities have not asked Collectors of Customs to share details of the amount of rebate/duty drawback paid to the exporters by each Model Customs Collectorate. The rebate and drawback are the basic right of different categories of claimants including importers and manufacturers-cum-exporters, but the Collectors of Customs conference remained silent on the issue relating to the business community.
This means that the whole conference only focused on the administrative and enforcement measures to increase revenue collection in the remaining period of 2016-17. Exporters are already facing liquidity crush due to delay in payment of sales tax refunds. The delay in payment of rebate and drawback to the exporters would also create further problems for the business community. Without discussing facts and figures of the rebates, it is not clear how the Collectors of Customs conference assessed the amount paid to the exporters.
Each Collector of Customs made a presentation before the tax authorities and suggested measures to improve collection at import stage. However, there was no discussion on payment of duty drawback and rebates to the exporters.
The tax authorities appreciated that the customs has shown over 20 percent growth in revenue collection during 2016-17. Tax authorities have given directions to the Collectors of Customs to improve sales tax and withholding tax collection at the import stage. It is necessary to increase sales tax and withholding tax collection from imports to achieve the assigned revenue collection target. The collection at the import state can play key role in achievement of the assigned targets.
Copyright Business Recorder, 2017