FBR has placed valuation guidelines for selected 136 imported items for all over the country with the objective to discourage mis-declaration throughout the country.
But the business community has been continuously expressing its concerns that these valuation guidelines would promote smuggling and increasing trade in the guise of Afghan Transit Trade and smuggling back of goods into Pakistan.
The tax machinery has been facing a dilemma that it remained unable to apprehend smuggling and mis-declarations in a big way. Now by using technology, efforts are underway to come up with same valuation of goods at entry and exit points in order to avoid mis-declarations but the FBR placed this mechanism without taking the stakeholders into confidence.
Now the system is in place and FBR should initiate consultation process and bring changes where it really creates impediments for genuine importers.
The trade and industry has rejected these guidelines by terming it as unjust and unfair which will cause increased malpractices of Customs officials with a view to harass the importers.
The business tycoons have requested Finance Minister Ishaq Dar to take notice and abandon this practice with immediate effect.
On other side, FBR is of the view that there is different valuation going on at different imports clearance points so the Board taken conscious decision to fix benchmark valuation for 136 items which are imported rampantly into Pakistan.
“We expect that the FBR will be able to increase its revenue in shape of customs duty to the tune of Rs 2 to 3 billion in last quarter (April-June) of fiscal year 2014,” Member Customs Nisar Muhammad says.
Now the FBR and business community will have to sit together to come up with viable solution acceptable to both sides.
The business community has been requesting to Finance Minister to spare time after his return from USA and listen to the viewpoint of industry before taking any final decision.
If implemented, these valuation guidelines will leave no other option for the importers but to seek other ways, including the controversial Afghan Transit Trade and the situation is likely to promote mis-declaration and smuggling.
They said that importers are kept uninformed about the changes in the valuation guidelines and due to fears of escalating demurrage/detention charges, the importers find no other option but to immediately clear the imported goods according to the value mentioned in the valuation guidelines.
Ishaq Dar should immediately intervene into this issue and resolve this issue without wasting anytime.
