KARACHI: Overseas Investors Chamber of Commerce and Industry (OICCI) has presented recommendations to eliminate illicit trade in Pakistan.
In its proposals for budget 2022/2023 presented to the Federal Board of Revenue (FBR), the OICCI stressed the need of structural reforms in Pakistan customs to bring Illicit Trade into tax ambit.
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It said custom valuation should be done by using latest method of valuation including, online search and matching international and regional pricing and taking local legal brand owners on board.
Unauthorized imports of counterfeit products should be effectively checked through registration of brands with the custom authorities in coordination with the original brand owner/ registered in Pakistan.
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The data of import should be public property (restrictively) to ensure transparency, which will also help in taking over of goods under section 25A of the Custom Act, 1969.
Control the Afghan Transit Trade:
a) Revise the ATTA based on current reality, to protect the revenue base of Pakistan without hurting the real spirit of such agreements. Engage key stakeholders from OICCI and business community in Pakistan in such re-negotiation.
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b) Pending above, harmonize duty and tax rates to remove the incentive for evasion.
c) Fix quantitative limits for imports based on genuine Afghan needs and size of population.
d) Establish a basis of collecting duty/taxes at the point of entry into Pakistan for the account of the Afghanistan Government.
e) There should be a negative list of items which are not utilized in Afghanistan; yet are imported and make their way into Pakistan.
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Introduce stringent controls for illicit trade:
a) Introduce tighter penalties (e.g., criminal liability) for illicit trade across categories across the whole value chain – retailers, distributors, and manufacturers.
b) Introduce a special division/ task force to raid retailers and manufacturers to confiscate and destroy illicit stocks.
