ISLAMABAD: The Federal Board of Revenue (FBR) is deliberating on having a an integrated database of different databases of Customs to raise the proportion of revenue collected out of customs duties in the total volume of revenue collection.
Presently, almost 70% share of total revenue collection comes from income and sales tax and tax collected from the customs duties constitute the remaining 30% share in the total revenue.
“FBR Chairman Tariq Bajwa has assigned task to Member Customs Nisar Ahmad and Member Information Technology Ms. Raana Ahmed to chalk out a proper program improve inter connectivity of both the wings” a well placed source at FBR told this scribe here on Friday.
Need for an integrated database of different databases of Customs has emerged in the wake of lengthy procedures followed for the imports and exports of items and products.
Imported and exported goods land in Pakistan through sea and airports and then taken to delivery points. Main Goods are imported via sea routes and then delivered at dry ports and same process is being adopted for exports.
Presently, Lahore Dry Port, Karachi Dry Port, Quetta Dry Port, Peshawar Dry Port, Multan Dry Port, Rawalpindi Dry Port, Sialkot Dry Port, Faisalabad Dry Port, Pak-China Sust Dry Port, NLC Dry Port at Thokar Niaz Beg Lahore, NLC Dry Port at Quetta, QICT Dry Port at Prenagar Railway Station and Sialkot International Container Terminal [SICTL] New Multimodal Dry Port at Airport Road, Sambrial-Sialkot are operational in the country for import and export of products.
Similarly, three seaports including Karachi Port, Port Qasim and Gwadar Port are being used in this regard.
This process is being managed under Web Based One Customs. (WeBOC) system and further strengthen and effective this system link of every station must have integrated system to get imported items on same online numbers.
Pakistan Customs is the guardian of Pakistan borders against movement of contra band goods and is facilitator of bona fide trade. It 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.
The improved and effective system will ensure delivery and release of an imported item, however, existing system is not effective and effectiveness is weak due because delivery and departure point does not have full information.
Consequently, especially Afghan transit and others is being effected as well as revenue losses of inland revenue are also increasing due to different numbers of items at sea or airports than at the dry ports and points of delivery of items.
The reduced revenue or duty from customs in result of ineffective and weak inter connectivity among the different databases of customs cast double negative impacts on income and sales tax collection.
Therefore to have an effective monitoring system, the Large Taxpayers’ Unit (LTU) Karachi is required to have a live data sharing system with other LTUs to provide accurate needed information about the imported items.
It will also ensure availability and activeness of monitoring system round the clock at sea and airports and other tax collecting. Therefore, LTU Karachi, Chief Collector Enforcement have been asked to chalk out a proper program in consultation with officers of Inland Revenue to improve inter connectivity.
