The Reform and Revenue Mobilization Commission (RRMC) in Pakistan has recently conducted an assessment and determined that the post of principal appraiser in Pakistan Customs serves no practical purpose.
In its recommendations, the RRMC cited a chief collector appraisement who stated that the position of Principal Appraiser only creates hurdles in the customs process, leading to the conclusion that a review of this position is necessary.
READ MORE: Pakistan May Impose High Tax Rates on Non-Filer Religious Travelers
According to the RRMC, the current system of utilizing a product history period of less than six months can be misleading. The Valuation Department currently relies on a 90-day history log to allocate channels (Green, Yellow, Red) to goods declarations. In light of this, the RRMC recommends extending the history log to 180 days. Additionally, the commission suggests studying trade-based data that is both relevant and reliable to enhance the accuracy of customs procedures.
READ MORE: Pakistan Urged to Intensify Taxation on Tobacco Industry
Another issue highlighted by the RRMC is the lack of a proper disposal mechanism for confiscated goods, which often results in wastage. These confiscated goods include petroleum products such as oil. The commission proposes that the enforcement department should be allowed to utilize the confiscated oil and petroleum products, as they are in dire need of them for patrolling purposes. This approach would not only address the waste issue but also contribute to cost savings for the enforcement department.
READ MORE: ICAP Proposes Rationalizing Tax Rates for Salary Income
The observations and recommendations made by the RRMC aim to streamline the customs process in Pakistan and address inefficiencies that hinder effective revenue mobilization. By eliminating the position of Principal Appraiser and implementing changes in product history periods and the disposal of confiscated goods, the RRMC seeks to enhance the efficiency and effectiveness of the customs system.
READ MORE: Proposal to Abolish Withholding Tax Regime for Listed Companies
It remains to be seen how these recommendations will be evaluated and implemented by the relevant authorities. The RRMC’s efforts to identify areas for improvement and propose necessary reforms reflect a commitment to enhancing revenue mobilization and promoting transparency in Pakistan’s customs operations.
