360,000 containers never reached: Suddle

25,000 containers under the Afghan Transit Trade never left Karachi.

KARACHI:
The federal tax ombudsman, Dr Shoaib Suddle, has disclosed that 360,000 containers were dispatched to Pakistan, but they never reported their arrival at Pakistan’s borders.

He was addressing the federation of Pakistan Chambers of Commerce and Industries (FPCCI) on Wednesday. He said that 25,000 containers, booked under the ATT (Afghan Transit Trade) never made it to Karachi, but fake documentation indicated that they had been delivered to their destination.

He explained that starting from Karachi, four and a half days are required to deliver goods at the Chaman border, while it took six days for the goods to make it to the Afghan border of Torkham. But these very containers make it back within six days instead of the regular of 10 days.

Some impounded containers, found to have contained liquor, and others booked under the ATT never returned despite a lapse of two years. “This falls under the purview of smuggling,” he declared.

The tax ombudsman said legislation was quite necessary for the “taxpayers’ bill of rights”, which would be fully supported by his office.


The FTO (federal tax ombudsman) helped disburse Rs220 million worth of refunds, during past nine years, out of which an average of Rs7 billion worth of refunds were disbursed during his tenure.

Suddle said that the advisory committee of the FTO was being made more effective in the next two weeks, and the FPCCI would also have to appoint its representative. This would help with coordination between the FPCCI, business community and the FTO. An accessible website would be put up.

The FTO received an annual 1,500 complaints out of which two-thirds pertained to income tax, 16 per cent to sales tax, 14 per cent to customs, and 14 per cent to central excise tax.

The tax ombudsman stressed businesses must encourage the growth of a tax culture.

Published in The Express Tribune, February 24th, 2011.
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