November 5, 2022 (MLN): Federal Board of Revenue (FBR) Chairman Asim Ahmed on Sunday said that the process of valuation was being revamped in line with the international market-based concept and relevant law in this regard has already been amended, a press release issued by the apex trade body showed.
Several international publications were regularly posting prices of different yarn types of several origins which will be electronically linked with the revamped Valuation System wherein valuations will be regularly according to current international yarn prices, he added while speaking at a meeting during his visit to the Karachi Chamber of Commerce & Industry (KCCI) on Saturday.
The chairman while referring to concerns expressed over unnecessary raids assured the business community to discuss the issue with DG Customs Intelligence and advised the members of business community to bring all such cases of unjustified raids to the FBR’s notice so that action could accordingly be taken.
Commenting on issues emerging due to exemptions on import of black tea for FATA, PATA and Azad Kashmir, Asim Ahmed agreed that the exemptions were being misused but these exemptions will be ending on June 30, 2023.
The FBR has devised a mechanism last year wherein, quota was fixed for these areas according to their production capacity. “It is now the stakeholders who should tell the FBR whether the situation has improved or not.”
Touching upon the issue of placement of invoice and packing list in containers of import cargo, FBR chairman agreed with Businessmen Group (BMG) Chairman and said the FBR was aware of this issue and has carried out an extensive exercise to understand it considering global practices and found business community’s concerns valid.
He also mentioned that withholding tax on inward remittances of indenters’ commission has been reduced from 5 percent to 1 percent in this year’s budget while the 13 percent Sales Tax being paid to the provincial exchequer will be discussed with the Sindh Revenue Board.
He said that some delays in release of refund claims was occurring, but a tranche has recently been released on November 2. The business community should carefully submit refund claims as many refund claims get delayed if marked deferred by the system. “FASTER system has been working smoothly yet if anyone faces delays in receiving refunds, they can seek assistance from the FBR”, he added.
He also advised all Chief Commissioners to maintain complete coordination and liaison with the KCCI so that the grievances being faced by the business community and promised to resolve issues being faced by yarn traders who are not allowed to claim refunds before 14 months while the 7.5 percent difference in duties between the commercial and industrial importers of polyester yarn will also be reduced.
BMG Chairman Zubair Motiwala appreciated the board and highlighted that the Chapters 84 and 85 have brought the entire work to a complete halt and it was a matter of grave concerns that around 7,000 applications were in KCCI’s possession which have been lying pending only due to delays in approval from the State Bank of Pakistan. Stopping imports of essential raw materials, spare parts and even solar panels was not making any sense which should be allowed so that the industrial wheels keep on spinning without any interruption.
Motiwala was of the view that around $3-4 billion remain parked abroad which people simply don’t want to remit to Pakistan because of the exorbitant taxes on indenting commission hence, these taxes should be waived so that the desperately needed foreign reserves could be brought to Pakistan.
Appreciating FBR’s move to revamp the valuation system, Motiwala advised to expedite the process with a view to provide some relief to the business community. “As the country faces severe energy crises, the import of solar panels has to be allowed without any hindrances which would be a great service to this nation”, he said, adding that around 650 vehicles which have already been imported and were lying at the ports must also be cleared by lowering the recently imposed 100 percent extra duty at the earliest.
On the occasion, Vice Chairman BMG Jawed Bilwani said the FBR’s FASTER system for refund claims was working fine after its launch, but the business community has now been facing a lot of issues in getting their refund claims issued on time which often creates liquidity problem and needs to be addressed. “As per law, all refund claims must be processed within 72 hours so that the business community could not face any liquidity issues.”
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Posted on:2022-11-05T20:48:09+05:00
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