According to the FBR's instructions to the collectors of customs on Friday, the board has implemented a plan in Model Customs Collectorates (MCCs) to increase customs duty, sales tax and withholding tax collection on imports during remaining period of (March-June) 2016-17. These set of enforcement and recovery measures on imports would ensure extra revenue generation in the remaining period of 2016-17.
As per FBR's decisions implemented at import stage, while giving exemptions from sales tax under the Sixth Schedule of the Sales Tax Act 1990 and SRO No 1125(1)/2011 dated 31.12.2011 and the relevant provisions of Income Tax Ordinance, the collectorates of customs will take necessary precautionary measures to prevent the availing of such concessions by unauthorised taxpayers.
Secondly, to devise a proper mechanism and check the irregularities in the import of currency at Air Freight Unit (AFU), Collector MCC Preventive, Karachi, will take necessary measures and submit a report to the FBR after consultation with State Bank of Pakistan by March 15, 2017. In this regard, the action is required by Collector MCC, Preventive, Karachi.
Thirdly, to realise the revenue stuck up in the litigation, Collectorates will pursue the cases in the relevant judicial fora proactively and in important cases, officers should personally appear in the courts along with concerned lawyers. The chief collectors will monitor the same in their respective jurisdiction. A fortnightly report will be sent to the board in this regard. Secretary judicial customs will consolidate all such reports in a suitable format for perusal of senior management. Action in this regard is required by all chief collectors/collectors secretary (customs -judicial) FBR.
Fourthly, to dispose of the goods lying at warehouses and ports, collectorates will take necessary measures for early auction of such goods. A fortnightly report will be sent to the board indicating the disposal of those cases separately where the bids acceptance falls within the competence of the collector.
Fifthly, all collectorates shall scrutinise and analyse their sales tax and withholding tax exemptions and send their reports to the board by 15th March, 2017. Sixthly, impact of budgetary measures shall be quantified by all the concerned collectors and reports will be submitted to the board within 15 days. Seventh, Directorate General of I&I (Customs) will conduct a study of zero rating of sales tax at import stage and submit its report to the FBR within two weeks time. Action is required by Directorate General of I&I (Customs/IR), the FBR directed.
Eighth, a joint team of DG Customs Intelligence and Investigation (I&I) and Intelligence and Investigation Inland Revenue (IR) will scrutinise/conduct audit of those units which are availing exemption/concessionary rate of sales tax being industrial importer. Report in this respect will be submitted to the FBR within two months. Action is required by Directorate General of I&I (Customs/IR).
Ninthly, all the collectorates/directorates will submit their vehicle requirements for taking further necessary action by the concerned sections of the FBR within 20 days. The FBR said that the action is required by all DGs, all collectors, Chief (Admn), FBR. Tenthly, to increase co-ordination between Customs and IRS wings of the FBR, dedicated cell for effective coordination will be established in the FBR.
Moreover, for improved performance in the areas of revenue collection as well as anti-smuggling operations, the FBR chairman, in principle, agreed for establishment of new collectorates. Proposal in this respect will be submitted by Collectors MCC Peshawar/Quetta/Gwadar/Preventive, Karachi and Port Qasim and will be processed by Chief (F&C), FBR.
The FBR further directed that the Chief Collector (Appraisement) South will submit a report after analysis of collection of sales tax at import stage on all Pakistan basis within one week. The customs collectorates will obtain list of frequent flyers from Chief (F&C), FBR and will keep close watch on the movement of such persons at the airports. A report on implementation of such measures will be communicated to the board on monthly basis. Collector, MCC (Preventive) Karachi will resolve the issue with the airlines about submission of manifest information to the customs authorities within one month and DG (R&A), Karachi will ensure the development of module for the same within one month thereof. The action is required by DG (R&A-Customs), Karachi, all concerned Collectors, Chief (F&C), FBR.
Collector, MCC Port Qasim, MCC (Preventive), Karachi and MCC (Preventive), Lahore, in consultation with other concerned Collectorates, will analyse the impact of reduction of sales tax rate on the POL products and submit a report to the board, the FBR directed.
The FBR said that the Directorate General (DG) (Transit Trade) will submit the analysis report to the FBR about transit of edible oils to Afghanistan via Chaman and Torkham within 10 days.
Collectors, MCC, Quetta and Peshawar in consultation with Chief (F&C), will prepare and present its report for effective border management by March 15, 2017. For change in reward rules to include other law enforcement agencies, proposal will be submitted by Collector, MCC, Quetta and further action will be taken by Chief (F&C),FBR within one month time. Action is required by Collector, MCC Quetta, Chief (F&C), FBR.
The DG (Customs Valuation) will take the concerned collectors, particularly MCC, Peshawar and Quetta, on board while determining values of goods imported through land routes, FBR directed. The action is required by DG (Customs Valuation), Concerned Collectors.
The Collector MCC, (Preventive), Lahore, will be the focal person for all matters concerned with the depositing of gold in Pakistan Mint, Lahore. However, other concerned collectors will provide complete assistance to him in cases of their respective collectorates.
All exports collectorates, especially MCC Sialkot (Sambrial), will decide the old cases (2013-14, 2014-15) of duty drawback on top priority within two months' time and submit a report to the board in this regard. In case of requirement of amount in excess of their targets, the FBR will be informed for further instructions. The action is required by all exports collectorates, chief (exports/exemptions). All the collectorates will ensure, after issuance of IPR rules, to include section 15 and IPR Rules violation in the relevant cases and submit a report to the DG (IPR-enforcement) on monthly basis, the FBR's instructions added.
Copyright Business Recorder, 2017