ISLAMABAD: Federal Board of Revenue (FBR) will issue procedure for documenting smuggled and non-duty paid fast moving consumer goods (FMCG).
In a tweet message on Saturday, FBR Chairman Syed Shabbar Zaidi said that the FBR was working in developing a ‘expeditious settlement’ of ‘non duty paid’ fast moving consumer goods available in the market.
He said that the tax machinery would release details next week.
“The purpose is to facilitate businessmen and improve documentation without disturbing business confidence,” he added.
Recently, teams constituted by the FBR conducted physical survey of main markets and shopping centers/plazas to identify the presence of non-duty paid and smuggled goods.
The FBR teams inspected imported products including garments, cosmetics, watches, toys, gift items, batteries, cigar, leather goods, designer bags etc.
The sources said that the teams had identified smuggled and non-duty paid goods at big retails outlets.
The FBR on August 17, 2019 decided to launch monitoring the presence of smuggled goods in main shopping markets across the country from this month. It was also decided to launch the monitoring by joint teams of Inland Revenue and Pakistan Customs.
The Overseas Investors Chamber of Commerce and Industry (OICCI) recently in a letter to the FBR chairman the chairman highlighted the magnitude of smuggled/illegal goods.
“There is not a single study to identify the complete magnitude of illegal trade in Pakistan but it is estimated that approximately 60 percent of the total demand for products of over half a dozen sectors of the formal economy, including petroleum, tea, mobile phones and auto parts industry, is met only through smuggling.”
It said that bulk quantity of illegal/smuggled goods is available and these goods were mainly affecting sectors including petroleum, tea, mobile phones and auto parts industry.
Highlighting the impact of illegal trade, the OICCI said: “virtually all major organized crime groups are not involved in the trade, resulting from huge profits but little risk, and whilst utilizing the services of children and slave labor.”
These groups do not pay taxes, nor do they pay fair wages, and there is zero traceability of funds generated from the trade and their eventual disposition, the OICCI said, added: “More often than not, these funds may be redirected to terrorism, and money laundering.”