The Central Board of Revenue has adopted the policy of increasing exports by reducing duty on raw material. Lesser duties mean less manufacturing cost and greater chances of exports. These observations were made by CBR member (Customs) Muhammad Ramzan Bhatti in a post-budget seminar, titled "Customs law and procedures", here on Saturday.
"Sales tax and income tax collection is meant to benefit all the segments of society", he claimed.
"A GDP growth of 80 percent had stimulated the local economy. More jobs will be created and more income groups will appear on the national scene. This will boost investments, as the business community will be motivated positively" he said.
He told the audience that duty on 2000 items had been reduced to 5 percent from 25 percent. "That is why our exports are increasing so vigorously", he added. "Our international trade has leaped from Rs 8 billion to Rs 14 billion in the last fiscal year. A great achievement indeed", he added.
He said that total revenue collection this year was Rs 140 billion. Out of this total, import duties brought Rs 50 billion. He said that various electrical/electronic items, such as refrigerators, air conditioners, television, etc, are cheaper now as these are being manufactured in the country with imported parts.
He said that prices of clothes will also come down and the common man will enjoy the positive improvement. Useful amendments are being made in customs laws to facilitate the business community and plug the loopholes in it, he added.
"Our aim is to encourage single-person ventures. Duties for such ventures have been reduced to 20 percent from 35 percent. The budget would also produce an energetic environment for businessmen and taxpayers. All goods to be exported would be inspected at exporter's premises and this will save time and the hassle", Bhatti said.
He informed the audience that changes in customs working pattern are inevitable. Greater facility, web-based system and common customs software for entire country will be provided. This will make exchange of information among collectors of the different regions easier. Customs officers will make quick decisions on duty/other disputes in one's premises. Unnecessary delays will not be allowed.
About confiscation of goods, he said that the constitution has given this right to the government, if the concerned parties made violations.
He assured the audience that secrecy clause from customs laws would be removed for greater transparency. He affirmed that CBR would deal with tax-evaders with an iron hand.
Regarding 'undue' concessions in Afghan Transit Trade and increased smuggling Bhatti said that as Afghanistan/Pakistan border was 1500 km long and very porous, it was difficult to stop smuggling despite great efforts by the concerned agencies. As for the concessions in the transit trade, he said that the United Nations accords all land-locked countries such facilities. Same facilities are given by Iran and Central Asian States to Afghanistan, and by India to Nepal.
Earlier in the morning, Feroze Junejo, Deputy Director, Directorate of Training and Research (DOTR) introduced the guests and the speakers. Fateh Muhammad Shaikh, Additional Director of DOTR presented address of welcome.
Muhammad Saleem, Secretary, CBR, informed the participants about the Customs Budgetary Changes in some detail. He also replied to the queries by the participants. Fayyaz Rasool, Deputy Collector (Export) elaborated about Export Facilitation Measures and answered businessmen queries.
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