Islamabad to establish data interfaces with Kabul, Dubai
Move aimed at combating under-invoicing, duty and tax evasion
Representational image. PHOTO: REUTERS
ISLAMABAD:
The federal government has decided to establish electronic data interfaces with Afghanistan, Hong Kong, Singapore and Dubai in a bid to combat under-invoicing, customs duty and tax evasion and misdeclaration and underassessment of goods.
The government has specified February 20, 2020 as the deadline for the Federal Board of Revenue (FBR) for setting up the electronic data interface with Afghanistan in consultation with relevant ministries and agencies.
The interfaces with the remaining three countries and regions would be established by June 2020.
According to documents available with the Daily Express, Prime Minister Imran Khan, while presiding over a meeting, directed FBR officials to establish the electronic data interfaces.
In this regard, the FBR has been given the responsibility of working with officials of the Ministry of Foreign Affairs, Ministry of Commerce and Ministry of Information Technology and Telecommunication for establishing the interfaces with the four countries and regions.
Officials of the Ministry of Commerce said a special inter-ministerial committee, comprising officials of the FBR and the three ministries, had been constituted to implement the directives.
The committee will present draft agreements for setting up the electronic data interfaces after mutual consultation with all stakeholders and relevant authorities of Afghanistan, Hong Kong, Singapore and Dubai.
After the exchange of draft agreements, the FBR would send final drafts to the federal cabinet for approval following which they would be sent to the four countries and regions.
Sources expressed optimism that the move would help curb under-invoicing, duty and tax evasion and misdeclaration of goods.
They added that the electronic data interfaces would be linked to the systems installed at all customs stations, dry ports and other internal and external points.
These interfaces will contain data of imported goods and allow cross-matching of the value of items shown in the goods declaration by the importers.
In addition to that, the importers would have access to the documents, data and related tax records submitted for goods import from Afghanistan, Hong Kong, Singapore and Dubai.
Following the implementation of the system, Pakistani tax authorities would be able to verify details from the tax authorities of the four countries and regions and the initiative will help increase duty and tax collection as well as curb tax evasion.
Published in The Express Tribune, January 30th, 2020.
The federal government has decided to establish electronic data interfaces with Afghanistan, Hong Kong, Singapore and Dubai in a bid to combat under-invoicing, customs duty and tax evasion and misdeclaration and underassessment of goods.
The government has specified February 20, 2020 as the deadline for the Federal Board of Revenue (FBR) for setting up the electronic data interface with Afghanistan in consultation with relevant ministries and agencies.
The interfaces with the remaining three countries and regions would be established by June 2020.
According to documents available with the Daily Express, Prime Minister Imran Khan, while presiding over a meeting, directed FBR officials to establish the electronic data interfaces.
In this regard, the FBR has been given the responsibility of working with officials of the Ministry of Foreign Affairs, Ministry of Commerce and Ministry of Information Technology and Telecommunication for establishing the interfaces with the four countries and regions.
Officials of the Ministry of Commerce said a special inter-ministerial committee, comprising officials of the FBR and the three ministries, had been constituted to implement the directives.
The committee will present draft agreements for setting up the electronic data interfaces after mutual consultation with all stakeholders and relevant authorities of Afghanistan, Hong Kong, Singapore and Dubai.
After the exchange of draft agreements, the FBR would send final drafts to the federal cabinet for approval following which they would be sent to the four countries and regions.
Sources expressed optimism that the move would help curb under-invoicing, duty and tax evasion and misdeclaration of goods.
They added that the electronic data interfaces would be linked to the systems installed at all customs stations, dry ports and other internal and external points.
These interfaces will contain data of imported goods and allow cross-matching of the value of items shown in the goods declaration by the importers.
In addition to that, the importers would have access to the documents, data and related tax records submitted for goods import from Afghanistan, Hong Kong, Singapore and Dubai.
Following the implementation of the system, Pakistani tax authorities would be able to verify details from the tax authorities of the four countries and regions and the initiative will help increase duty and tax collection as well as curb tax evasion.
Published in The Express Tribune, January 30th, 2020.