Chairman Federal Board of Revenue (FBR) Tariq Bajwa said on Tuesday that the FBR is only accepting financial securities in the form of pay orders instead of bank guarantees from importers to ensure timely encashment. He informed the Public Accounts Committee (PAC) here on Tuesday that the FBR is facing problems in the encashment of importers bank guarantees in cases under litigation. Even courts give decisions in favour of the FBR, if the bank guarantees are not timely enchased.
Chairman PAC Syed Khursheed Shah stated that the FBR should devise some mechanism for the encashment of bank guarantees submitted by the importers. For example, such guarantees of private banks may not be accepted by the FBR. Auditor General of Pakistan has informed the PAC that according to section 81 of the Customs Act, 1969, where it is not possible to assess customs dues, the goods may be released provisionally after obtaining appropriate securities or post dated cheques for differential amount between final determinations over the amount determined provisionally. If the final determination is not made within the period of six months, the provisional determination shall deem to be the final determination.
Three MCCs (PaCCS, PMBQ, Preventive), Karachi of FBR assessed the imported goods provisionally and government dues were secured by obtaining securities/post dated cheques but failed to encash mature securities/post dated cheques in 694 cases involving Rs 1,398.645 million. DAC meetings were held on 13th to 15th October, 2011, 15th to 17th December, 2014, 08 to 09 April, 2015, 08 to 09 July, 2015 and dated 17 to 18 September, 2015. The DAC recommended the para for settlement to the extent of amount recovered Rs 133.027 million and amount not due Rs 589.911 million, directed the department to expedite recovery of 6.374 million, and pursue the cases for Rs 669.335 million in the courts of law. PAC may like to settle the para to the extent of recovered amount of Rs 133.027 million and not due amount of Rs 589.909 million, directs the department to expedite the recovery of Rs 6.374 million and pursue the cases for Rs 669.335 million in the courts of law.