Tag: Pakistan Customs

Pakistan customs seals over 1,600 illegal petrol pumps during FY22

KARACHI: Pakistan Customs has sealed over 1,600 petrol pumps across the country in its drive against smuggled petroleum products.

The Federal Board of Revenue (FBR) in its performance report for the fiscal year 2021/2022 stated that Customs authorities initiated country wide operations against illegal POL outlets during the fiscal year.

READ MORE: FBR directs IR offices to avoid recovery in pending appeals

FBR said that during the operation Customs sealed more than 1600 illegal outlets with criminal proceedings against owners. This initiative helped increase in legitimate imports of POL products.

It said Pakistan Customs is the guardian of Pakistan borders against movement of contra band goods and is facilitator of bona fide trade.

READ MORE: FBR directs 85 big retailers to integrate businesses

Customs provides a major source of revenue to the Government of Pakistan in the form of taxes levied on the goods traded across the borders. It also helps to protect the domestic industry, discourage consumptions of luxury goods and stimulate development in the under-developed areas.

Following initiatives taken by the Customs Administration during the TY 2022:

First Ever Counter Smuggling Policy Laid out which is an excellent example of interagency co-operation.

Highest Ever Counter Smuggling Seizures made (FY 2021-22: Rs. 66 billion).

READ MORE: FBR issues one million tax notices to enforce compliance

Countrywide Operation against Illegal POL outlets (sealing of more than 1600 illegal outlets with criminal proceedings against owners), through which, legitimate imports of POL products saw sharp surge as compared to previous financial year.

Opening Pakistan to Central Asian Republics through simplification of Transit Procedures and Automated Clearance. Pak-Uzbekistan Transit Agreement has been finalized and deliberations have been started.

Ease of Doing Business Indicators improved by 28 percent from 136 to 108 in 2021, which is an “unprecedented improvement” resulting into efficient Cross Border Trade.

READ MORE: FBR unveils plan to achieve Rs7.47 trillion revenue collection target

Pakistan Single Window Act, 2021 enacted and its rules notified and expected to be roll-out in the coming months.

WeBOC has now been implemented at all sea-ports, dry-ports and land border stations.

Online Payments have been introduced for the traders wherein levy-able duty and taxes on import of goods are paid online through digital banking.

Risk Management System is part of WeBOC clearance which is continuously upgraded from time to time.

Automated Duty Drawback Payment System: In order to facilitate the exporters, the manual rebate approval system has been replaced with RMS based, fully automated / system-based processing of duty drawback payment without involving any human intervention. Under the automated system, the exports Good Declaration is termed as Rebate request.

Administrative Measures like auctions, recoveries, valuations etc have resulted in generation of Rs. 25 billion in FY 2021-22.

October 10, 2022
Customs officer awarded major penalty of rank demotion

ISLAMABAD: Federal Board of Revenue (FBR) has awarded major penalty of demotion in rank to a customs officer BS-16.
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October 4, 2022
Customs appraising officer awarded ‘dismissal from service’

ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday awarded major penalty of ‘dismissal from service’ upon an appraising officer of Pakistan Customs on the charges of misconduct.

According to an official notice, the FBR stated disciplinary proceedings were initiated against Syed Imtiaz Hussain Shah, Appraising Officer (BS-16), Directorate of Post Clearance Audit (North), Islamabad by the Authority/Member (Admn/HR) by issuing order under Rule-7 read with Rule-6 of the Civil Servants (Efficiency & Discipline) Rules, 2020 dated July 20, 2022 on account of acts of omission and commission constituting “Misconduct” under Rule- 3(b) read with Rule-2(1)(K) of the Civil Servants (E&D), Rules, 2020.

READ MORE: Outbound passengers to declare currency above $5,000

A Show Cause Notice was served upon Syed Imtiaz Hussain Shah, Appraising Officer (BS-16). In response to the Show Cause Notice, the accused submitted defence reply to the Authority on August 16, 2022 along with the request for personal hearing.

The Member (Admn/HR) / Authority afforded an opportunity of personal hearing to the accused on September 08, 2022.

READ MORE: Dental practitioners directed to get sales tax registration

After having gone through the case record including reply to Show Cause Notice, verbal submissions made by the accused during the personal hearing and other relevant record, the Member (Admn/HR) being Authority in this case, is of the considered opinion that the charges of “Misconduct” stand established against the accused.

READ MORE: Tax rates on profit from bank deposits during year 2022/2023

Therefore, the Authority Member (Admn/HR) has decided to impose a major penalty of “Dismissal from Service” upon Syed Imtiaz Hussain Shah, Appraising Officer, Directorate of Post Clearance Audit (North), Islamabad under Rule- 4(3)(e) of the Civil Servants (E&D) Rules, 2020.

The officer will have a right to appeal against this Order to the Appellate Authority under Civil Servants (Appeals) Rules, 1977 within a period of 30 days from the date of communication of this Notification.

READ MORE: Up to 70% income tax imposed on dividends for year 2022-2023

September 22, 2022
Pakistan Customs foils attempt to clear banned items

KARACHI: Pakistan Customs has foiled a major attempt to clear items that are banned for importer into the country.

A statement issued on Friday stated that the Collectorate of Customs Appraisement (West), Federal Board of Revenue (FBR) Karachi had foiled a major attempt to clear high value and high tariff miscellaneous goods mostly banned items vide SRO-598(I)/2022.

READ MORE: FBR starts penal action against non-filing of asset declarations

A consignment imported from UAE by M/s. Riz Green Industries declared to contain ‘old & used tyre scrap’ marked by system in yellow channel was suspected and referred for detailed examination at Karachi International Container Terminal (KICT).

Upon thorough examination, miscellaneous goods including artificial jewellery, furnishing fabric, laptops, tablets, mobile phones, auto parts, food supplements, cereals, cosmetics, DVRs and home electronics, etc were recovered from 09 out of 10 containers.

READ MORE: FBR announces prize winners in eighth draw of POS invoices

The assessed value of recovered goods is estimated at Rs. 453 million involving duty and taxes worth around Rs. 400 million.

It is an unprecedented case/detection by any clearance Collectorate. FIR has been lodged and one person has been arrested. Further investigation is underway.

READ MORE: FBR directs Customs officials to declare dual nationality

Chairman FBR/Secretary Revenue Division Asim Ahmad has commended the successful operation by the Customs Appraisement team and reiterated his unflinching resolve to fight the menace of smuggling in all forms and manifestations.

It is also pertinent to mention that Chairman FBR has already issued special instructions to Customs Field Formations for stepping up vigilance at airports and land border stations to frustrate any attempts made for smuggling.

READ MORE: FBR allows tax refund deducted through electricity bills

August 20, 2022
FBR sacks customs officer on corruption charges

ISLAMABAD: The Federal Board of Revenue (FBR) on Wednesday imposed major penalty upon a customs officer on the charges of corruption, misconduct and inefficiency.

The FBR said disciplinary proceedings were initiated against Imran Fareed, Inspector (BS-16), Collectorate of Customs Enforcement, Lahore by the authority/ member (Admn/HR), FBR vide Order of Inquiry dated 19.01.2022 on account of omission and commission constituting ‘Inefficiency’ ‘Misconduct’ and ‘Corruption’ in terms of Rule-3(a),(b)&(c) of the Civil Servants (Efficiency & Discipline) Rules, 2020.

Basit Maqsood Abbasi, Collector (BS-20), Collectorate of Customs Enforcement, Lahore was appointed as Inquiry Officer to conduct inquiry proceedings under the Civil Servants (E&D) Rules, 2020.

READ MORE: FBR launches GUI to make return filing user-friendly

The Inquiry Officer vide inquiry report dated 30.05.2022 concluded that all the charges as leveled in the order of inquiry stand established. The audio-visual clips relating to the case reveal his direct involvement in bargaining with the complainant/owner of the goods for demanding illegal gratification.

A Show Cause Notice dated June 17, 2022 was issued to the accused officer for defence reply and to afford him an opportunity of personal hearing by the Authority/ Member (Admn/HR), FBR.

Whereas, on receipt of the reply to Show Cause Notice, the accused requested for opportunity for personal hearing. The Authority/ Member (Admn/HR) provided an opportunity of personal hearing to the accused on July 26, 2022.

READ MORE: FBR upgrades tax return filing portal

Accordingly, the Authority/ Member (Admn/HR), FBR after having considered all aspects of the case i.e. inquiry report, reply to the Show Cause Notice, written and verbal submission made by accused/Departmental Representative during the personal hearing and relevant case record, has found that the accused being the seizing officer in the instant case has not only mis-reported the place of recovery of goods but deliberately concealed the detention of vehicles carrying smuggled goods.

He has also misstated the date of detention i.e. November 19, 2021 instead of November 17, 2021 for ulterior motives. The accused officer failed to submit separate examination reports in respect of each intercepted vehicle. The accused further appears to be guilty of directly bargaining for illegal gratification with the complainant/owner of the goods.

READ MORE: Tax through electricity bills not taken back: clarification

Hence, the charges of “inefficiency”, “misconduct” and “corruption” under Rule-3(a),(b)&(c) of the Civil Servants (Efficiency & Discipline) Rules, 2020 stand established against the accused. The Authority, therefore, has agreed with the findings and recommendations of the Inquiry Officer and imposed major penalty of “Removal from Service” upon Imran Fareed, Inspector (BS-16), under Rule-4(3)(d) of the Civil Servants (Efficiency & Discipline) Rules, 2020 with immediate effect.

The officer, shall have the right to appeal before the Appellate Authority as admissible under the Civil Servants (Appeal) Rules, 1977 read with Rule-19 of the Civil Servants (Efficiency & Discipline) Rules, 2020.

READ MORE: Pakistan’s tax agency collects Rs458 billion in July 2022

August 10, 2022
Karachi Customs to auction confiscated vehicles on August 11, 2022

ISLAMABAD: The Collectorate of Customs Enforcement, Karachi has announced auction of confiscated motor vehicles on August 11, 2022 at Anti-Smuggling Office (ASO), Ghasbandar Keamari, Karachi.

The Collectorate is schedule to auction following vehicles.

01. One Unit Old & Used Toyota Crown Saloon Car, Reg. M-3751 – Model – 1981 Chassis # MS112-061156 Engine # 2TZ0250677

READ MORE: Peshawar Customs to auction motor vehicles on August 11, 2022

02. One Unit Old & Used Toyota Land Cruiser Jeep Reg. LZN-888 Model 1999 chassis # UZJ100-0081129 Engine # 2UZ-0132269.

03. One Unit Old & Used Jaguar SUV S Type Reg. # AAR – 770 (Sindh) – 3000 CC, Model – 2002 Chassis # SAJACO2EX2FM144654.

04. One Unit Old & Used Toyota Surf Jeep Reg. BD-1234 (Sindh) Modal 1992 2446CC Chassis # LN130-0125263 Engine # 2.L-TE

05. One Unit Old & Used Nissan Station Wagon Reg No. CD-2120 Model 1990, 2500CC Chassis # TGD21-500077 Engine # 000332

06. One Unit Old & Used Toyota Cresta Saloon Car Reg No DGA-265, Model 1996 2491CC Chassis # JZX100-6000152 Engine # 20704205

READ MORE: Gwadar customs auctions motor vehicles on July 28, 2022

07. One Unit Old & Used Toyota Crown Car Reg. No. ALD-030 Model 2004 Chassis.#-GRS182-0002959

08. One Unit Old & Used Toyota MarK- X Car Reg. No. GS-2314 Model 2004 Chassis.#-GRX121-3000273

09. One Unit Old & Used Toyota Surf Jeep Reg. No. BF-8252 Model 1990 Chassis<#-LN130-0042931

10. One Unit Old & Used Toyota Corolla Car Reg. No. TD-497 J Model 2000 Chassis No.CE121-3000202 Engine No. 30-E-2134

11. One Unit Old & Used Toyota Land Cruiser Prado Reg. No. BD-3253 Model 2002 Chassis No. VZJ125-0001103

12. One Unit Old & Used Toyota Crown Car Reg. No. ANQ179 Model 2007 Chassis No. GRS184-0015746

13. One Unit Old & Used Honda Cross Road Reg. No. BF-0628 Model 2007 Chassis No. RT3-1002127

14. Old & Used Toyota Mark-X Car Reg. No. ANU-808 Model 2007 Chassis No. GRX120-3050526

15. Old & Used Toyota Corolla Saloon Car Reg. No. AAH-329 Model 1991 Chassis No. AE100-3063950

READ MORE: Peshawar Customs announces auction of motor vehicles on July 26, 2022

16. Old & Used Toyota Land Cruiser Prado Reg. No. BF-9736 Model 1999 Chassis No. VZJ95-0055467

17. Old & Used Toyota Hilux Surf Jeep Reg. No. X-52-AF/ X-52-89 Model 1992 Chassis No. LN130-7004751

18. Old & Used BMW CAR M3 Reg. No. BQC-568 Model 2002 Chassis No. WBSL92040JR02784

19. Old & Used BMW CAR M3 Reg. No. Nil Model 2002 Chassis No. WBSL92000JR02359

20. Old & Used Toyota Crown Royal Saloon Reg. No. AJB-585 Car Model 2004 Chassis No. GRS182-0017053

21. Old & Used Toyota Hilux Surf Jeep Reg. No. BD-3391 Model 1997 Chassis No. KZN185-9021416

22. Old & Used Toyota Land Cruiser Jeep Reg. No. AC-666 Model 2003 Chassis No. UJZ100-0147239

23. Old & Used Honda Civic Car Reg. No. ANB-300 Model 2008 Chassis No. JHMFD36B8S212257

24. Old & Used Toyota Hilux Surf Jeep Reg. No. BF-7898 Model 1999 Chassis No. RZN185-9023859

25. Old & Used Suzuki Swift Car Reg. No.AYU-137 Model 2005 Chassis No. ZC11S-126213

READ MORE: MCC Gwadar to auction motor vehicles on July 18, 2022

26. Old & Used Toyota Hi-Lux Surf Jeep Reg. No. JSA-449 Model 1998 Chassis No. VZN185-9023173

27. Old & Used Honda Civic Saloon Car Reg. No. APY-178 Model 2006 Chassis No. FD3-1002855

28. Old & Used Toyota Corolla Luxel Car Reg. No. GP-9041 Model 2004 Chassis No. ZZE122-3096314

29. Old & Used Toyota Hi-Lux Surf Jeep Reg. No. QAY-3013 Model 1995 Chassis No. KZN185-0004698

30. Old & Used Wrangler Jeep Reg. No. BG-8530 Model 1997 Chassis No. 1J4FY49S7VP511051

31. One Unit Old & Used Toyota Passo Car Model 2005 Reg. No. AUW-419 Chassis No. KGC10-0066546

32. One Unit Old & Used Suzuki Swift Car Model 2007 Reg. No. BAY-324 Chassis No. ZC71S-423182

33. One Unit Old & Used Honda Civic Saloon Car Model 2006 Reg. No. AQR-345 Chassis No. FD3-1100458

34. One Unit Old & Used Toyota ALTEZZA Car Model 1999 Reg. No.AHZ-343 Chassis No. GXE10-0015955

35. One Unit Old & Used Toyota Land Cruiser Model 2006 Reg. No. Nil Chassis No. GRJ120-5045389

36. One Unit Old & Used Toyota Vitz Car Model 2007 Reg. No. AAQ-119 Chassis No. NCP95-0026497

37. One Unit Old & Used Honda Civic Saloon Car Model 2008 Reg. No. AYF-144 Chassis No. FD3-1301865

38. One Unit Old & Used Toyota Hi-lux Surf Jeep Model 1996 Reg. BD-0681 Chassis No. RZN185-0019822

39. One Unit Old & Used Honda Civic Saloon Car Model 2006 Reg. No. APW-052 Chassis No. FD3-1004937

40. One Unit Old & Used Suzuki Swift Car Model 2007 Reg. No. AYR-491 Chassis No. ZC71S-426211

41. One Unit Old & Used Toyota Passo Car Model 2004 Reg. No. AXS-483 Chassis No. KGC10-0006422

42. One Unit Old & Used Toyota Vitz Car Model 2005 Reg. No. GP-0770 Sindh Chassis No. SCP90-0020090

43. One Unit Old & Used Honda Civic Car Model 2009 Reg. No. PX-650 Chassis No. FD3-1303199

44. One Unit Old & Used Honda Civic Car Model 2007 Reg. No. ANB-300 Chassis No. JHMFD36207S207S207S213050

45. One Unit Old & Used Toyota Land Cruiser Jeep ZX Reg. AAB-786 Model 2012 Chassis No. URJ202-4027315

46. One Unit Old & Used Toyot Land Cruiser Reg. No. BC-5831 Model 1999 Chassis No. HDJ101-0013385

47. One Unit Old & Used Toyota Surf Jeep Reg. No. GP-7700 Model 2001 Chassis No. VZN185-9053424

48. One Unit Old & Used Honda Cross Road Jeep Reg. No. BG-0335 Model 2007 Chassis No. RT1-1003734

49. One Unit Old & Used Toyota Mark-X Saloon Car Reg. No. BBD-048 Model 2006 Chassis No. GRX120-3013393

50. One Unit Old & Used Toyota Mark-X Car Reg. No. ARC-717 Model 2005 Chassis No. GRX121-1004300

51. One Unit Old & Used Toyota Premio Car Reg. No. BBQ-292 Model 2008 Chassis No. ZRT260-3047660

52. One Unit Old & Used Honda Civic Car Reg. No. AYX-712 Model 2008 Chassis No. JHMFD36208S207806

53. One Unit Old & Used Honda Civic Car Reg. No. AQB-554 Model 2006 Chassis No.FD3-1003537

54. One Unit Old & Used Honda Civic Car Reg. No. ANJ-726 Model 2007 Chassis No. FD3-1104004

55. One Unit Old & Used Honda Civic Car Reg. No.ARG-419 Model 2006 Chassis No. FD3-1005837

56. One Unit Old & Used Honda Civic Car Reg. No. ARQ-782 Model 2008 Chassis No. JHMFD36208S201588

57. One Unit Old & Used Honda Civic Car Reg. No. LEF-13-1131 Model 2007 Chassis No. FD3-1100388

58. One Unit Old & Used Suzuki Swift Car Reg. No. AAM-179 Model 2007 Chassis No. ZC71S-425811

59. One Unit Old & Used Suzuki Swift Car Reg. No. AGV-101 Model 2004 Chassis No. ZC11S104415

60. One Unit Old & Used Suzuki Swift Car Reg. No. AWX-050 Model 2004 Chassis No. ZC11S107033

61. One Unit Old & Used Suzuki Swift Car Reg. No. ATG-213 Model 2010 Chassis No. ZC71S-588825

62. One Unit Old & Used Suzuki Swift Car Reg. No. BDU-114 Model 2006 Chassis No. ZC21S-151748

63. One Unit Old & Used Suzuki Swift Car Reg. No. AXE-550 Model 2008 Chassis No. ZC71S-464926

64. One Unit Old & Used Toyota Vitz Car Reg. No. KV-286 Model 2002 Chassis No. NCP10-0167507

65. One Unit Old & Used Toyota Surf Jeep Reg. No. BG-0133 Model 2007 Chassis No. GRN215-8107741

66. One Unit Old & Used Cherokee Jeep Reg. No. BC-9877 Model 2001 1J4G858S41Y523609

August 7, 2022
Gwadar customs auctions motor vehicles on July 28, 2022

KARACHI: Customs Collectorate, Gwadar has announced auction of motor vehicles that will be held on July 28, 2022 at Custom House, Gaddani.

READ MORE: Peshawar Customs announces auction of motor vehicles on July 26, 2022

The Collectorate will auction the following vehicles:

1. Toyota Mark-X Car, Reg. No. AFR-2020, Chassis No. GRX121-1002780, Engine No. 3GR-FSE, Model: 2004.

2. Mitsubishi Pajero, Reg No. JAR-248, Chassis No. LJ78-00151955, Engine No. –TE.

3. Pajero, Reg No. JAA-983, Chassis No. CL0048VGJ400698.

4. Hino Truck (06-Wheeler), Reg No. TTB-491, Chassis No. AK176-45387

READ MORE: MCC Gwadar to auction motor vehicles on July 18, 2022

5. Hino Truck (06-Wheeler), Reg No. TKN-647, Chassis No. FE8JLF-10064

6. Hilux Surf, Reg No. BC8774, Chassis No. VZN215-0003887, Engine No. 5VZ-FE3378(3400CC), Model: 2003

7. Corolla Axio Car, Reg No. AFT-789, Chassis No. NZE1G1-6127020, Model 2010

8. Toyota Corolla Axio Car, Reg No. AME-854, Chassis No. NZE141-6110051, Model. 2008.

9. Toyota Land Cruiser, Reg No. BD-7777, Chassis No.UZJI00-0145693, Model. 2003.

READ MORE: Customs to auction NDP vehicles on June 8, 2022

10. Toyota Hilux Surf, Reg No. 2BB-4433, Chassis No. VZN215-0004937, Model: 2003.

11. Toyota Land Cruiser, Reg No. ABB-785, Chassis No. UZJI00-0154840, Model. 2005.

12. Toyota Crown Car, Reg No. AFR-022, Chassis No: GRS182-0011883, Model: 2004.

13. Daihatsu Mira Car, Reg No. BAP-403, Chassis No. L2758-2046046, Model: 2008.

READ MORE: Lahore Customs to auction vehicles on May 26, 2022

14. Toyota Crown Car, Reg No. QIIC-3989, Chassis No. QWS204-0002009, Model: 2008.

15. Toyota Vitz Car, Reg NO: ATN-555, Chassis No. SCP90-5032180, Model. 2005.

16.    Toyota Fielder Car, Reg No. JAB-118, Chassis No. NZE121-0171398, Engine No. INZ-Fe, Model, 2002.

17.    Honda Civic, Chassis No. JHMFD-163095201118, Model 2009.

18.    Toyota Land Cruiser Prado, Chassis No: VZJ95-0101986, Model: 2002.

READ MORE: Customs Sukkur to auction huge lot of motor vehicles

July 26, 2022

Peshawar Customs announces auction of motor vehicles on July 26, 2022

ISLAMABAD: The Collectorate of Customs (Enforcement), Peshawar has announced public auction of motor vehicles on July 26, 2022 at State Warehouses.

Following are the auction details of motor vehicles:

LIST OF VEHICLES RIPE FOR AUCTION SWH GODOWN-E, PESHAWAR ON 26.07.2022

S#	Make & Model	Chassis No.
01	Mercedes Benz (Bullet Proof) Model 1982	WDB-12603312037551
02	Toyota Corolla Car Model 1987 (As per Website)	CE90-3002413
03	Toyota Crown Car Model 2000 (As per Website)	GS171-0001109
04	Toyota Hilux Pick Up Model 1990 (As per Website)	LN130-0018395
05	Toyota Hilux 4Runner Pickup Model 1996 (As per Website)	LN106-0146897
06	Suzuki Car Model 1997 (As per documents)	ERC11S00200283
07	Toyota State Car Model 1990 (As per Website)	CE96-0089577
08	Mitsubishi Pick Up Model 1986 (As per Documents)	CNJK140HP00196
09	Toyota Fielder “X” Car Model 2002 (As per Website)	NZE124-0018888
10	Toyota Fielder “X” Car Model 2000 (As per Website)	NZE121-3021387
11	Toyota Corolla Car Model 1993 (As per Website)	CE106-0049233
12	Toyota Corolla Car Model 1987 (As per Website)	CE90-5002682
13	Toyota Corolla Car Model 1985 (As per Website)	EE80-0060788
14	Toyota Corolla Car Model 1988 (As per Website)	CE90-0023057

LIST OF VEHICLES RIPE FOR AUCTION SWH MARDAN

S#	Make & Model	Chassis No.
01	Toyota State Car Model 1990 ( As per Website)	CE96-0106153
02	Toyota Corolla Car Model 1992 (As per Website)	CE100-3025153
03	Toyota Estate Car Model 1998 (As per Website)	CE100-0073091

LIST OF VEHICLES RIPE FOR AUCTION SWH NOWSHERA

S#	Make & Model	Chassis No.
01	Toyota Fielder “X” Car Model 2004 (As per Website)	NZE121-0318355

July 23, 2022

Pakistan decides 10% regulatory duty on petrol import

KARACHI: Pakistan has decided to impose regulatory duty at 10 per cent from July 01, 2022.

The country presented its federal budget 2022/2023 on June 10, 2022 and proposed increase on regulatory duty on various imported goods.

READ MORE: Penalty amount revised for late filing income tax returns

The Finance Bill, 2022 suggested levying 10 per cent regulatory duty on import of motor spirit as against existing rate of zero percent.

Experts at PwC A.F. Ferguson Chartered Accountants said that the notifications for amendments relating to regulatory duty and additional duty are yet to be issued. “The comments are based on ‘Salient Features’ issued with the finance bill,” they added.

READ MORE: Advance tax on immovable property purchase enhanced to 250% for non-filers

The government also proposed increase in regulatory duty from zero per cent to 10 per cent on other paper, paperboard, cellulose wadding and webs of cellulose fibers.

Furthermore, the government planned to increase regulatory duty from 10 per cent to 20 per cent on optic fiber cables.

The Finance Bill also proposed amendments in reduction of regulatory duties, which included:

Regulatory duty has been proposed to be reduced as follows:

Case hardening steel from 30 per cent to 20 per cent

Chrome yellow from 15 per cent to 0 per cent

The Finance Bill proposed reduction / concessions in customs duty:

Customs Duty (CD) leviable on the import of following categories of items / sectors is proposed to be exempted for incentivizing the respective sectors:

READ MORE: Pakistan massively increases taxation on motor vehicles

– Machinery and capital goods for mechanization of farming including machinery pertaining to irrigation, drainage, harvesting, plant protection etc.

– Specified raw materials used for manufacturing of LED lights, LED bulbs (including parts thereof) and brush ware.

– 26 Active Pharmaceutical Ingredients for incentivizing Pharmaceutical manufacturers.

– Raw materials for manufacture of first aid bandages.

– Membranes for filtering / purifying water.

– The drug ‘Grafalon’ and gadget ‘Irisvision’.

– Raw materials of Ivy leaves extract powders.

– Motor spirit.

In addition to CD, Additional Customs Duty (ACD) is also proposed to be exempted on import of the following goods:

– Raw materials imported by paper sizing industry and chlorinated paraffin wax industry and manufacturers of aluminum conductor composite cores.

– Stamping foils for manufacturing of optic fiber cables.

– Aluminum paste and powder imported by the Coating industry.

– Guts, bladders and stomachs of animals.

READ MORE: New rates of capital gain tax on disposal of securities

Reduction in Customs Duty and Additional Customs Duty

CD leviable on import of following goods is proposed to be reduced:

– Specified categories of other woven fabrics and artificial flowers / foliage of other materials imported by manufacturers of footwear.

– High-density fiber (HDF) boards of wood or other ligneous materials

– Specified fibers of polypropylene.

In addition to CD, ACD, leviable on import of following goods is also proposed to be reduced:

– Direct and reactive dyes.

– Glycerol crude and Glycerol for the coating industry.

– Goods pertaining to Aluminum, polymers of ethylene, Biaxially Oriented Polypropylene (BOPP) used by the packing industry.

– Adhesive, Epoxide resins, Filter media/ paper, Non-woven fabric media and Steel plates / sheets of prime quality imported by manufacturers of filters, other than automotive.

READ MORE: Pakistan slaps 45% corporate tax on banks

– Organic composite solvents and thinners imported by manufacturers of Dibutyl Orthophthalates.

– Plywood, veneered panels & similar laminated wood, poly (methyl methacrylate) and cyanoacrylate.

– Flavoring powders for food preparation for snacks manufacturers.

June 19, 2022
Budget 2022/2023: Salient features of customs duty act

ISLAMABAD: Following are salient features of amendments made to Customs Act, 1969 through Finance Bill, 2022.

GUIDING PRINCIPLES

(a) Remove anomalies in cascading structure of tariff.

(b) Promote and protect domestic industry by introducing targeted interventions.

(c) Rationalizing tariffs on industrial raw materials / intermediate goods.

READ MORE: Budget 2022/2023: Salient features of sales tax

ADOPTION OF WCO HS – 2022 VERSION:

The World Customs Organization (WCO) updates its Harmonized Commodity Description and Coding System (HS) after every five years to accommodate modern developments and changing trade patterns. The last HS version was updated in 2017. The current amendments to the HS nomenclature have entered into force since 1st January, 2022. Pakistan being a signatory to the HS Convention has obligation to adopt the HS 2022 version. Since, these amendments are required to be incorporated in the First Schedule to the Customs Act, 1969 (Pakistan Customs Tariff), therefore, Pakistan adopted the same by incorporating all of its latest amendments introduced in earlier nomenclature / HS codes in Pakistan Customs Tariff by the process of addition / deletion and creation of local PCT codes, accordingly. It will be effective from 1st of July, 2022.

READ MORE: Budget 2022/2023: Salient features of income tax

INDUSTRIAL RELIEF MEASURES:

1. To incentivize packaging industry, CD and ACD on various tariff lines pertaining to aluminum, polymers of ethylene, BOPP etc. have been downward rationalized.

2. Reduction in CD and ACD on 10 tariff lines pertaining to direct and reactive dyes.

3. To incentivize agricultural sector and farmers, customs duty exemption extended further to Farm Mechanization and Logistics including agricultural machinery pertaining to irrigation, drainage, harvesting / post- harvest handling & processing, plant protection equipment as well as machinery, equipment and other capital goods for miscellaneous agro based set ups in Sr. 1, 2 and 3 of Part-I of Fifth Schedule.

4. To incentivize Coating Industry, CD and ACD have been exempted on Aluminum paste and powder and CD and ACD have been reduced on glycerol crude and glycerol.

5. To incentivize manufacturers of filters other than automotive, CD and ACD have been reduced on their raw materials i.e, Adhesive, Epoxide resins, Filter media/ paper, Non-woven fabric media and Steel plates / sheets of prime quality.

6. To incentivize footwear industry, customs duties have been reduced on different categories of other woven fabrics and artificial flowers / foliage of other materials.

READ MORE: Pakistan allocates Rs800 billion for FY23 PSDP

7. To incentivize LED lights and bulbs manufacturers customs duties have been exempted on import of 05 more items i.e, Aluminum Electrolytic capacitor, SMT Electrical Transformer, aluminum alloy sheet, Tantalum capacitors (DIP/SMD) and Other inductors, small transformer, coil (DIP/SMD). Furthermore, the scope of exemption has also been extended for the manufacturers of Parts of LED light and Bulbs.

8. Tariff structure on the different tariff lines related to MDF / HDF have been rationalized evenly.

9. To encourage local manufacturers of brush ware, customs duties have been exempted on import of Poly-butylene terephthalate.

10. CD & ACD on import of Stamping foils have been exempted for manufacturing of Optical Fiber Cable.

11. Tariff structure on import of Synthetic filament yarn, monofilament, staple fibers of polypropylene has been rationalized to resolve the cascading issues.

12. To encourage export oriented industry, CD and ACD have been exempted on import of Guts, bladders and stomachs of animals etc.

13. Reduction in CD and ACD rates on import of Plywood, veneered panels & similar laminated wood, poly (methyl methacrylate), cyanoacrylate.

14. Extension in scope of concession on import of organic composite solvents and thinners for the manufacturers of Dibutyl Orthophthalates.

15. Rationalization of Tariff structure on import of IV Leaves extract powders and exemption of CD & ACD on its raw materials i.e, other plants and parts of plants from 3 per cent CD and 2 per cent ACD.

16. Exemption of customs duties on import of membrane for filtering / purifying water from 16 per cent CD & 4 per cent ACD.

17. Exemption of customs duties on 03 different raw materials for first aid bandages manufacturing industry from 5 per cent.

18. Reduction of customs duties on import of flavouring powders for food preparation for snacks manufacturers.

19. Exemption of CD & ACD on raw materials of aluminum conductor composite core manufacturers.

20. Exemption of CD & ACD on import of raw materials of paper sizing industry and chlorinated paraffin wax industry.

READ MORE: Federal government presents budget 2022-2023

RELIEF FOR COMMON MAN:

21. To keep the prices of medicines stable in the market and to encourage local manufacturing of pharmaceuticals, customs duties have been exempted on 26 more APIs and on one drug “Grafalon”.

22. Irisvision is for low vision individuals of all ages and with this gadget low vision persons can read and write easily, therefore customs duties have been exempted on import of Irisvision Device with its complete components.

REVIEW OF RD REGIME:

23. 10 per cent CD rate on import of motor spirit has been replaced with 10 per cent RD.

24. Continuation of 20 per cent RD on import of Disodium Carbonate to protect the local industry.

25. To encourage the vendor industry, RD has been reduced on import of case hardening steel from 30 per cent to 20 per cent.

26. Withdrawal of 15 per cent RD on import of Chrome yellow.

27. 10 per cent RD has been levied on import of Other paper, paperboard, cellulose wadding and webs of cellulose fibres to protect the local industry.

28. Withdrawal of RD exemption available on import of High Carbon Wire Rod.

29. RD on import of optical fibre cables has been increased from 10 per cent to 20 per cent to encourage the local manufacturers.

READ MORE: Tax exemptions cost Rs1.76 trillion in FY22

LEGISLATIVE CHANGES:

1. The definition of smuggling has been widened to include smuggling of essential commodities out of Pakistan through bordering and coastal areas to curb this menace.

2. To facilitate trade and industry, changes have been incorporated to align the provisions of the Customs Act, 1969 with the Pakistan Single Window (PSW) Act, 2021, providing platform for integration of other government agencies.

3. The timeline to finalize the provisional assessment has been reduced from existing nine months to four months to facilitate trade and avoid delay in realization of government revenue.

4. Powers regarding extension in warehousing period have been delegated to Additional Collector of Customs to facilitate trade by expediting grant of requests for extension.

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5. Option to change consignee name in relation to frustrated cargo has been provided to address the issue of port congestion.

6. Pecuniary jurisdiction of Additional Collector and Deputy Collector has been increased to rationalize the workload of adjudicating authorities and quick disposal of legal cases.

7. To reduce the cost of doing business and rationalize fees charged by the terminal operators, enabling provision has been provided for determination of various charges by customs authorities.

8. Provision has been incorporated to indemnify the officers of provincial governments for their actions taken in good faith to prevent the smuggling of essential commodities under the Customs Act, 1969.

June 11, 2022