PTI govt gears up to tackle under-invoicing, increase tax-to-GDP ratio
FBR issues notification to set up Directorate General Risk Management
Representational image. PHOTO: REUTERS
ISLAMABAD:
The federal government has decided to establish a Directorate General Risk Management (DGRM) to prevent under-invoicing on imports and increase tax-to-GDP ratio in the country.
In this regard, the Federal Board of Revenue (FBR) has introduced a new Chapter No XXXI in the Customs Rules 2001 through a notification No 101(1)/2020 determining the responsibilities and powers of the DGRM.
According to the FBR notification, the DGRM will work towards monitoring and reducing the risks associated with import-related activities, including clearance of containers, LCL, bulk cargo, transit cargo, international passengers and clearing agents.
Under the rules, the DGRM or risk management committee, headed by a Grade 21 officer, would be set up. Further, its subordinate committees, headed by collectors’ customs and comprising four members each, would be set up at all collectorates across the country while the Directorate General Transit Trade would also set up its own risk management committee.
FBR to grill 24,000 Pakistanis for buying dollars in bulk
These committees would hold meetings on a monthly basis.
The notification states that the risk management committee will devise plans and implement strategies to reduce tax evasion and introduce innovative techniques and tools for monitoring imports and exports of transit goods. It will also work towards reducing the risk associated with clearance of foreign passengers.
The DGRM will also monitor the international trends and stakeholders’ feedback for assessment and evaluation of the risk management system. It will also keep a close eye on clearance patterns and procedures for different sectors as well as commodities and devise a strategy to reduce under-invoicing.
The directorate will ensure close coordination among various customs collectorates and also carry out post clearance audit.
It will also prepare and publish quarterly reports on risk management system on behalf of the FBR. The risk management committee will be preferably headed by director general risk management while other members of the committee will include grades 19 and 20 officers of the Pakistan Customs Service for which a separate notification will be issued by the FBR.
The head will nominate a Grade 19 officer to serve as the secretary of the risk management committee. The committee will hold at least one meeting every month to review the risk management system’s performance, including risk parameters, behaviour of importers, risk indicators and other measures.
The federal government has decided to establish a Directorate General Risk Management (DGRM) to prevent under-invoicing on imports and increase tax-to-GDP ratio in the country.
In this regard, the Federal Board of Revenue (FBR) has introduced a new Chapter No XXXI in the Customs Rules 2001 through a notification No 101(1)/2020 determining the responsibilities and powers of the DGRM.
According to the FBR notification, the DGRM will work towards monitoring and reducing the risks associated with import-related activities, including clearance of containers, LCL, bulk cargo, transit cargo, international passengers and clearing agents.
Under the rules, the DGRM or risk management committee, headed by a Grade 21 officer, would be set up. Further, its subordinate committees, headed by collectors’ customs and comprising four members each, would be set up at all collectorates across the country while the Directorate General Transit Trade would also set up its own risk management committee.
FBR to grill 24,000 Pakistanis for buying dollars in bulk
These committees would hold meetings on a monthly basis.
The notification states that the risk management committee will devise plans and implement strategies to reduce tax evasion and introduce innovative techniques and tools for monitoring imports and exports of transit goods. It will also work towards reducing the risk associated with clearance of foreign passengers.
The DGRM will also monitor the international trends and stakeholders’ feedback for assessment and evaluation of the risk management system. It will also keep a close eye on clearance patterns and procedures for different sectors as well as commodities and devise a strategy to reduce under-invoicing.
The directorate will ensure close coordination among various customs collectorates and also carry out post clearance audit.
It will also prepare and publish quarterly reports on risk management system on behalf of the FBR. The risk management committee will be preferably headed by director general risk management while other members of the committee will include grades 19 and 20 officers of the Pakistan Customs Service for which a separate notification will be issued by the FBR.
The head will nominate a Grade 19 officer to serve as the secretary of the risk management committee. The committee will hold at least one meeting every month to review the risk management system’s performance, including risk parameters, behaviour of importers, risk indicators and other measures.