Duty and taxes: Customs pays Rs500m in rebate claims

Tax official says delay in duty return to businesses affects economy.

KARACHI:

Collector Model Customs Collectorate of PACCS Dr Jawwad Owais Agha has said that the customs department paid over Rs500 million in rebate claims in April this year.

Speaking to industrialists at the Karachi Chamber of Commerce and Industry (KCCI) on Monday, Agha said taking into account the problems of businesspersons, the process of rebate claims would be further accelerated, owing to their significance for the national economy.

“We know that the delay in clearance of rebate claims causes cash flow problems and it also affects the economy,” he said. He told businesspersons that the customs wanted to lessen its interference in laboratory tests and other customs procedures to eliminate hurdles. After World Trade Organisation (WTO) rules came into force, the customs department world over worked along the same lines and laws and procedures were available on the internet, making them accessible for everybody.

“Pakistan Customs wants to increase the trust of businesspersons to enhance duty collection,” he stressed.

Responding to the reservations of KCCI about the working of dry ports in the country, Agha said that he would inform the Federal Board of Revenue (FBR) about their concern over duty evasion at these ports.

He, however, added that dry ports had helped establish clusters of industries and small business hubs in different parts of the country.

KCCI Vice President Junaid Makda requested Agha to take the chamber into confidence, prior to registering FIR against businesspersons who were found guilty of duty evasion, adding the customs had taken tough action against businesspersons who were found guilty of deliberate misconduct.

Earlier, KCCI President Saeed Shafiq voiced concern over the working of dry ports and urged customs officials to check duty and tax evasion. “Unless we take strict action, we cannot move forward,” he said.

Published in The Express Tribune, May 10^th, 2011.