CBR told to expedite pending customs, sales tax cases

The Ministry of Finance has directed the Central Board of Revenue (CBR) to speed up the processing of pending customs and sales tax cases filed by foreign investors, industrial units, importers, local industry and other segments of the business community.
Sources told Business Recorder on Monday that the Advisor to Prime Minister on Finance, Dr Salman Shah, has dispatched a comprehensive list of such pending cases to the tax officials. The Board has been directed to promptly decide the pending cases facilitating the business community.
Most of the cases relate to CBR Customs Wing, which depicts the lukewarm attitude in finalisation of these cases. This will only increase the cost of the business, but also have a negative impact on investment in the country. It seems that revamping is not playing any significant role, as far as disposal of pending cases is concerned.
The advisor has directed CBR to print out difficulties faced in compilation of customs and sales tax data at the import stage. In reply, the department opined that computer bugs were identified in the data transmitted electronically. However, the work on compilation of data with consistency checks on national basis was in process, it added.
Other issues relate to the levy of sales tax on un-consumed stocks; sales tax refund fraud of Rs 4 billion through fictitious exports and anti-dumping issues. The advisor has asked the CBR to submit information on refund fraud case.
Dewan Automotive Engineering has requested the Finance Division to investigate a case pertaining to duty-free import of tractors in CBU condition as per budget announcement. The advisor said that customs should develop procedure for dealing with such tractors. A committee has been formed to review the plan of import of 10,000 tractors at the zero percent customs duty. It would submit the recommendations to the Prime Minister for approval.
Another case filed by General Tyre and Rubber Co relates to clearance under Afghan Transit Trade Agreement (ATTA). The customs department was unable to give satisfactory answer.
Another company demanded exemption of customs duty on import of cement clinkers. As per response, the Economic Co-ordination Committee of the Cabinet had already allowed import of clinker, in principle, subject to tariff structure to be mutually decided by the Ministry of Industries, Ministry of Commerce and CBR. Comments of the concerned departments are still awaited.
The CBR is also delaying compilation of import/export data from field formations necessary for expansion in the list of items importable from India. The Finance Division has directed the customs officials to submit a comprehensive analysis on the issue.
The Advisor on Finance has also asked CBR to evaluate and recommend measures to discourage manufacture and use of substandard steel bars and other products of construction industry.
The advisor has also directed CBR to resolve the problems of poultry industry.
CBR Chairman Abdullah Yusuf has recently warned the customs officials that there should be no doubt in the minds for stoppage or reversal of ongoing reforms. The role of CBR Headquarters is policy making and co-ordination with the collectors for implementation of these policies. Any operational issue coming to the Board would be considered as negative.