According to sources, the Pakistan Customs has decided to install Web Based One Customs (WEBOC) at 17 border posts of the country to stop irregularities of billions of rupees in the international trade. It is noted that the national exchequer is being subjected to colossal losses because of under-invoicing, duty evasionand fake documentation. To avoid this kind of practice, preparations are underway to launch a pilot project at Wahga border while the system is likely to be enforced in all over the country from next year. On the direction of the Federal Board of Revenue, the customs had started the programme to gradually wind up the traditional taxation system which is prevailing to deal with trade through land, air and sea routes and enforce WEBOC system. Currently, at least 93 percent official work at the Karachiair and sea ports is being carried out under WEBOC while the system was started at the Lahore Airport four months ago and the ratio of WEBOC use has increased from 57 percent to 77 percent. According to sources, trade with China, Afghanistan, Iran and India through land route is causing billions of rupees losses to the national exchequer because of the use of traditional system. Earlier, thousands of containers had been disappeared as it is probably easy for the tax evaders to dodge the customs by filing bogus documentation. However, the enforcement of WEBOCwill stop this kind of irregularities.
On another note, the Inland Revenue tribunal of the FBR has started computerising the official record to facilitate the litigants. Steps are being taken to dispose of the cases as soon as possible by establishing tribunals at district level.
There is a need to establish special taxation courts while tax refund cases also need to be speeded up. Unfortunately, there are elements within the business community who do not hesitate to exploit SROs and other customs rules and regulations to avoid taxes and duties on import and export of goods. There are some businesses which only survive on tax evasions and illegal rebate claims and this kind of practice needs to be discouraged at all levels.
