Customs blocks NTN of defaulter companies to expedite revenue recovery

KARACHI: Pakistan Customs has blocked NTN numbers of over 50 companies/traders, suspending all of their imports and exports, as huge sums are outstanding against them and they failed to meet their obligations, The News learnt on Monday.

An official said that Customs had expedited the campaign to recover government revenue to the tune of Rs2.0 billion outstanding against several companies.

The official said Customs Appraisement East was coordinating with the local governments for the confiscation of properties of the defaulting importers. Moreover, various commercial banks have also been intimidated regarding the freezing the bank accounts of defaulting importers.

It has been learnt that Customs has obtained wealth statements from the respective regional tax offices (RTOs) of importers/companies/traders to identify the properties and bank accounts of their family members.

The official said the recoverable amount was not disputed at all and had already been adjudged against the importing companies.

Meanwhile, Pakistan Customs has warned several banks for contravening the provisions of law. An official said they had information that several banks even after receiving the attachment notices did not freeze the particular banks accounts.

The official said several banks, despite clear directives on freezing bank accounts carried on transactions contravening the provisions of the Customs Act and Customs Rules.

Customs Appraisement East has served fresh notices on several banks directing them to issue bank statements of the last three months for scrutiny and further necessary action.

It must be mentioned here that Pakistan Banks’ Association (PBA) and the Federal Board of Revenue (FBR) have not been on good terms, as the FBR seeks access to account-holders’ central database. Banks fear breach of security if this access was allowed, while the FBR’s move comes as a part of its attempt to go after tax evaders.

An FBR official, requesting anonymity, said banks were too loyal to their clients and did not even hesitate in violating the provisions of law.

The official said there were reports that several banks did not deduct withholding tax on the transactions of their non-filer account holders causing loss to the government revenue.

And now, it was known that transactions were carried out in those accounts, for which seizure directives had been issued, the official said.

“Customs has initiated scrutiny in this regard and if banks are found to have contravened provisions of law, action will be taken against them as per law,” the official said.