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Author: Mrs. Anjum Shahnawaz

  • Customs law amended related to burden of proof

    Customs law amended related to burden of proof

    ISLAMABAD: The Finance Bill 2020 has made amendments to Customs Act, 1969 and made it mandatory for a person alleged of any offence is required to prove that property acquired by him is not from proceed of crime.

    The Finance Bill 2020 proposed to amend Section 187 of Customs Act, 1969. Following amendment has been proposed (changes in red):

    187. Burden of proof as to lawful authority etc.- When any person is alleged to have committed an offence under this Act and any question arises whether he did any act or was in possession of anything with lawful authority or under a permit, license or other document prescribed by or under any law for the time being in force, the burden of proving that he had such authority, permit, license or other document shall lie on him:

    “Provided that any person, alleged to have committed an offence under this Act, shall bear the burden of proof that any property owned by him in his name or someone else name was not acquired from the proceeds of such crime:

    Provided further that the procedure for forfeiture of such property shall be prescribed by the Board under the rules.”;

  • Concealment of currency, gold in baggage to be treated as smuggling

    Concealment of currency, gold in baggage to be treated as smuggling

    ISLAMABAD: The Finance Bill 2020 has made amendments to Customs Act, 1969 and defined any concealment of currency or gold in passengers’ baggage shall be treated as smuggling.

    In this regard amendment made to Section 139 of Customs Act, 1969 through Finance Bill, 2020 issued on Friday.

    (Note: Amendments in red)

    139. Declaration by passenger or crew of baggage.- (1) The owner of any baggage whether a passenger or a member of the crew shall, for the purposes of clearing it, make a verbal or written declaration of its contents in such manner as may be prescribed by rules to the appropriate officer and shall answer such questions as the said officer may put to him with respect to his baggage and any article contained therein or carried with him and shall produce such baggage and any such articles for examination:

    Provided that where the Customs Computerized System is operational, all declarations and communications shall be electronic.

    “(2) Where any passenger or a member of the crew makes a false declaration or fails to make such declaration as required under sub-section (1), he shall be guilty of an offence under this Act.”; and

    “(3) Notwithstanding the provisions of sub-section (2), where any person attempts to bring into or takes out of Pakistan, currency, gold, precious metals or stones, in any form, through concealment in baggage or circumventing customs controls at airports, sea-ports and land border custom-stations, he shall be guilty of an offence of smuggling within the meaning of clause (s) of section 2.”

  • Law tightened to prevent fiscal fraud on imported goods

    Law tightened to prevent fiscal fraud on imported goods

    ISLAMABAD: The Finance Bill, 2020 issued on Friday has proposed tightening customs law to prevent fiscal fraud on imported goods.

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  • Duty, taxes up to Rs5,000 exempted on imported goods

    Duty, taxes up to Rs5,000 exempted on imported goods

    ISLAMABAD: An amount up to Rs5,000 has been exempted in case minimum total duty and taxes on imported goods.

    An amendment to Customs Act, 1969 has been introduced through Finance Bill, 2020 issued on Thursday.

    Through the amendment the minimum duty and taxes that is not demanded by the customs authorities have been increased to Rs5,000 from existing Rs1,000.

    Through the bill Section 19C of the Customs Act, 1969 has been substituted.

    Finance Bill proposed following amendment to the Customs Act:

    “19C. Minimal duties not to be demanded.- Where the value of imported goods does not exceed five thousand rupees, no duties and taxes shall be demanded, subject to conditions and restrictions as may be prescribed by the Board under the rules.”

  • Development expenditures slashed by 18pc; federal PSDP pitched at Rs650bn

    Development expenditures slashed by 18pc; federal PSDP pitched at Rs650bn

    The total allocation for Pakistan’s national Public Sector Development Program (PSDP) has been set at Rs1,324 billion for the fiscal year 2020/2021, according to budget documents released on Friday. This allocation represents an 18 percent decrease compared to the Rs1,613 billion allocated in the outgoing fiscal year.

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  • Subsidies sharply cut by 40pc for next fiscal year

    Subsidies sharply cut by 40pc for next fiscal year

    ISLAMABAD: The federal government has decided sharp cut in subsidies during fiscal year 2020/2021. An amount of Rs209 billion has been allocated as subsidies for next fiscal year as compared with Rs349.5 billion of current fiscal year, showing reduction of 40 percent.

    According to budget documents for fiscal year 2020/2021 released on Thursday, a subsidy of Rs124 billion has been allocated to WAPDA/PEPCO during the next fiscal year as compared with Rs201 billion of current fiscal year.

    The government allocated subsidy of Rs30 billion to Naya Pakistan Housing Authority. Further an amount of Rs6 billion allocated for fertilizer plant subsidy (Engro, Fatima) during current fiscal year. The government already disbursed subsidy amount of Rs7 billion under this head.

    The subsidy to KESC has been reduced to Rs25.5 billion during next fiscal year from Rs59.5 billion of current fiscal year.

    The government has granted subsidy amount of Rs43.5 billion through Utility Stores Corporation (USC) during current fiscal year. However, during next fiscal year the government allocated subsidy of Rs3 billion for Ramazan Package through USC.

    An amount of Rs7 billion has been allocated as subsidy to PASSCO for wheat operation and wheat stock during next fiscal year. The government granted Rs15.5 billion subsidy under this head during current fiscal year.

    The government has allocated no subsidy to National Food Security and Research Division during the next fiscal year.

  • FBR assigned 27 percent higher revenue collection target in 2020/2021

    FBR assigned 27 percent higher revenue collection target in 2020/2021

    ISLAMABAD: Federal Board of Revenue (FBR) has been assigned 27 percent higher revenue collection target for fiscal year 2020 despite challenging economic conditions due to COVID-19.

    According to official documents of Budget 2020/2020, the FBR has been assigned revenue collection target of Rs4,963 billion during upcoming fiscal year as compared with expected current revenue collection of Rs3,908 billion during the outgoing fiscal year, which is Rs1,055 billion higher.

    The collection target under direct tax has been estimated at Rs2,043 billion during fiscal year 2020/2021 as compared with expected collection of Rs1,623 billion in the current fiscal year, which is Rs420 billion higher.

    Under direct tax collection, target for income tax has been estimated at Rs2,037 billion, workers welfare fund at Rs3.2 billion and capital value tax at Rs3 billion.

    The collection of indirect taxes has been estimated at Rs2,920 billion during next fiscal year as compared with existing estimated collection of Rs2,285 billion during the current fiscal year, which is Rs635 billion higher.

    Under indirect taxes, the collection target of customs duty has been set at Rs640 billion, sales tax at Rs1,919 billion and federal excise duty at Rs361 billion.

    Targets for collection of other taxes are included: ICT Rs20.47 billion; Mobile handset levey Rs5.8 billion; airport tax Rs25 million, Gas Infrastructure Development Cess (GIDC) Rs15 billion; National Gas Development Surcharge Rs10 billion etc.

    The collection of petroleum levy has been estimated at Rs450 billion for next fiscal year as compared with existing collection of Rs260 billion, which is 73 percent higher.

    The target for total tax revenue has been set at Rs5,464 billion during fiscal year 2020/2021 as compared with Rs4,208 billion expected to be collected during current fiscal year.

  • Three FBR officers promoted to BS-22

    Three FBR officers promoted to BS-22

    KARACHI: The establishment division on Friday notified promotion of three senior officials of Federal Board of Revenue (FBR) to BS-22 with immediate effect.

    According to notification issued by the FBR, two officers of Inland Revenue Service (IRS) and one officer of Pakistan Customs Service (PCS) have been promoted to BS-22 from BS-21.

    The government has promoted IRS officers included: Khawaja Adnan Zahir and Ms. Fareena Mazhar.

    Fareena Mazhar has been promoted with effect from July 20, 2020.

    In PCS, Muhammad Zahid has been promoted to BS-22. He is presently serving as Director General (BS-21), Directorate General of Transit Trade, Karachi, which is now upgraded as Director General (BS-22), Directorate General of Transit Trade, Karachi.

  • Remittances fall by 18.6 percent in May 2020

    Remittances fall by 18.6 percent in May 2020

    KARACHI: The inflow of workers’ remittance has registered 18.6 percent decline in May 2020 due to job losses and closure of borders due to coronavirus.

    The inflow of workers’ remittances was at $429.2 million in May 2020 as compared with $2.3 billion in the same month of the last year, showing decline of 18.6 percent, State Bank of Pakistan (SBP) said on Friday.

    During this pandemic situation, job losses of overseas workers and closure of international borders are the main factors affecting remittances’ flow. Moreover, in last year, the whole month of Ramadan fell in May 2019, the SBP said.

    During May 2020, workers’ remittances stood at $1,872.8 million, showing an increase of $82.8 million or 4.6 percent over previous month (April 2020, $1,790.0 million).

    Workers’ Remittances amounted to US $ 20,654.5 million during July – May FY20, up by 2.7 percent or US $ 551.5 million over July – May FY19 (US $ 20,103.0 million).

    Major contribution to workers’ remittances during May 2020 came from Saudi Arabia (US $ 436.2 million), USA (US $ 428.3 million), UAE (US $ 323.4 million) and UK (US $ 284.8 million) recording an increase of 25.7 percent and 6.6 percent for UK and USA respectively whereas a decrease of 3.4 percent and 8.6 percent for Saudi Arabia and UAE respectively as compared to April 2020.

  • Advance ruling in Customs laws introduced

    Advance ruling in Customs laws introduced

    ISLAMABAD: The government has introduced mechanism of advance ruling to facilitate importers and investors to ensure transparency in clearance process.

    Section 212B has been inserted to the Customs Act, 1969 through Finance Bill, 2020 to introduce advance ruling.

    Section 212B: Advance Ruling.

    (1) An applicant desirous of advance ruling shall make an application in such form and in such manner as may be prescribed under the rules, stating any of the questions as contained in sub-section (2), on which the advance ruling is sought.

    (2) The question on which advance ruling is sought shall be in respect of-

    (i) classification of goods under First Schedule to this Act;

    (ii)determination of origin of the goods under the rules of origin notified for bilateral and multilateral agreements;

    (iii)applicability of notifications issued in respect of duties under this Act or any tax or duty chargeable under any other law for the time being in force in the same manner as duty of customs leviable under this Act; or

    (iv)any other matter as the Board may specify by notification in the official Gazette.

    (3)The advance ruling issued under sub-section (1) shall be binding on the applicant.

    (4)The advance ruling issued under sub-section (1) shall be binding on the customs collectorates for the period specified by the Board in the rules, unless there is a change in law or facts or circumstances on the basis of which the advance ruling was pronounced.