Federal Board of Revenue (FBR) Member Customs-Policy Muhammad Javed Ghani Wednesday said the Ministry of Commerce and the Federal Board of Revenue (FBR) consider tariff rationalisation proposals of the industry and trade jointly and there is no conflict between officials of Commerce Ministry and the FBR in budget preparation exercise. Addressing a press conference here at the FBR House on Wednesday, Javed Ghani said that the FBR has taken major steps to expedite clearances of consignments of exporters' along with the implementation of Authorised Economic Operator Programme (AEOP). The FBR has upgraded WEBOC customs clearance system with 28 new modules to facilitate importers and exporters.
The FBR Member Customs-Policy said that the Commerce Ministry's proposals are mainly framed within the context of recommendations of the National Tariff Commission (NTC) whereas FBR finalises proposals in consultation with all the stakeholders. The FBR always welcomes budget proposals of the Commerce Ministry and they are always present in finalisation of the tariff proposals in every budget.
When asked about the differences between the Ministry of Commerce and FBR on tariff rationalisation, he said that the Commerce Ministry's proposals have been given due consideration during the budget exercise. He said that the six tariff rationalisation committees have been formed to study different sectors and industries for bringing changes in customs duties.
Javed Ghani said that the AEOP would ensure speedy and automated clearances of exporters. The facilities to be available to the exporters under the AOEP programme included minimum examination process, speedy clearances of shipments, consignments and clearance of bulk consignments. Flanked by Dr Jawwad Owais Agha, FBR Member Customs Operations, Javed Ghani explained benefits of the implementation of the AEOP.
Under the mutual agreements to be signed with different customs administrations, both the sides would facilitate clearances of exporters in their respective jurisdictions under the Authorised Economic Operator Programme. Customs administrations continue to enhance the security and facilitation of the global supply chain by implementing WCO international standards. A core element of this is Authorised Economic Operator (AEO) programmes, which embrace risk management and provide flexibility in the efficient use of limited resources.
The FBR has directed Chief Collectors of Customs to interact with trade bodies and chambers to introduce measures for export facilitation. Budget proposals have been sought from the business and trade for trade facilitation. FBR Member Customs Operations Dr Jawwad Owais Agha informed that National Window Project is expected to be rolled out by mid 2020. The FBR will achieve major objectives that include increase in cross-border trade with one-stop facility for all trade related activities for traders, importers, exporters and investors.
He said that the FBR will also complete internal audit of the valuation rulings issued for accurate application of taxes and duties at the import stage. The audit would correct values of customs duty as per rulings issued by the FBR. He said that the FBR has paid 31 percent more customs rebate to the exporters during July-January (2018-19) as compared to same period of last fiscal year. The FBR has paid Rs 11 billion rebate during July-January (2018-19) against Rs 9 billion in the first seven months of 2017-18.
He said that the FBR's expert team of customs officials and Pakistan Revenue Automation Limited (PRAL) has designed the updated version of WEBOC customs clearance system incorporating new modules. The WEBOC-Glow will be implemented in three phases. By April 2019, the FBR will implement the first phase of the new system. The second phase will be implemented by end-June 2019. By September 2019, full version of the WEBOC-Glow will be rolled out across Pakistan. Dr Agha added that the FBR is in the process of conducting a tax gap analysis. A committee has been formed in this regard. The World Bank is also assisting the FBR in conducting study on tax gap analysis and formation of transformation plan for five years.

Copyright Business Recorder, 2019

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