This has been disclosed by FBR Member Customs Zahid Khokhar before the Senate Standing Committee on Finance here on Friday while reviewing the Finance Bill 2018. The FBR also proposed that the tax rate on all fertilizers was proposed to reduce to 2 percent. The FBR had proposed tax on fertilizer bringing down from 5 to 3 percent but the federal cabinet had slashed it down to 2 percent.
In the Finance Bill 2018, the FBR has proposed getting powers to get details of passengers and crew from the airlines in a bid to enhance compliance with the FATF requirements.
FBR Member Customs Zahid Kokhar told the Senate Standing Committee on Finance that the amendments is proposed in the Customs Act through Finance Bill 2018 for getting details about passengers and crew prior to flying from Pakistan and it is aimed at complying with FATF requirements. He said that this proposed amendment aims at getting details about those who are frequent travellers.
When committee members asked why such passengers' data is being required, the FBR member said that the physical checking of passengers and their baggage is already allowed to the customs officials and they only need to analyze the data of frequent travellers, etc.
In order to comply with the conditions of World Trade Organization (WTO), the FBR proposed Authorized Economic Operator Program to provide facilitation related to secure supply chains of imported and exported goods through simplified procedures with regard to regulatory controls. Pakistan had ratified WTO this facilitation agreement in 2014 under which it was binding for providing facilitation to such multinationals companies which were not found in any tax evasion case in last couple of years. FBR Member Customs Zahid Kokhar said that they were studying different models implemented in all other parts of the world before finalizing its rules to implement this scheme in Pakistan. The committee recommended its smooth approval with the condition that the rules would be cleared from the Senate panel before placing to operationalize this scheme.
The FBR also proposed power to use data exchange information for determination of customs value in the Finance Bill 2018. The FBR high-ups told the Senate committee that Pakistan and China had signed memorandum of understanding (MoU) for electronic data exchange information for sharing GDs (goods of declaration) with each other as it would help Islamabad significantly overcome under-invoicing in a big way.
The FBR also proposed withdrawal of commissioner power to be deputed at manufacturing unit to get actual record of production and now these powers have been given to the Board under the proposed Finance Bill 2018. Under the package for film industry, the FBR proposed reduction in GST from 17 percent to 5 percent in the Finance Bill 2018. The FBR also proposed restoration of zero-rating regime for stationary sector in the budget 2018-19.
The FBR has also proposed restoration of powers of Directorate General Intelligence & Investigation Inland Revenues related to sales tax and also inserted clauses into the Finance Bill 2018 for providing protection to recoveries made by I&I IR as Lahore High Court (LHC) had given verdict against the Intelligence & Investigation Wing of Inland Revenues by restricting its jurisdictions and powers.