KARACHI: Officials of Pakistan Customs have put forward some recommendations before Federal Board of Revenue Chairman Tariq Bajwa and Member Customs Nisar Muhammad Ali in order to eliminate corruption, tax evasion, mis-declaration and under-invoicing from the customs.
According to sources, officers have recommended the introduction of two slabs for duties/taxes one for commercial imports and other for industrial imports with 25 per cent and 5 per cent duties/taxes to eliminate the discretionary powers of Customs officers, adding that this step will eliminate the SRO culture from the country.
They were of the view that the introduction of two slabs in customs duty will increase 25 per cent more duty, 20 per cent more sales tax and 15 per cent income tax in transparent way. Furthermore, they have rejected the phase-wise withdrawal of SROs by FBR.
“The introduction of two individual slabs will eliminate under-invoicing and fraud from the department and facilitate industry to grow-up in transparent manner,” they added.
They further suggested the FBR authorities concerned to re-structure the tax network in light of the present circumstances and that the Board may be divided in “direct tax” and “indirect tax” to control the department in efficient manner.
