ISLAMABAD: The FBR has proposed to get details of passengers and crew flying from Pakistan to different destinations of the world in a bid to comply with the requirements imposed by the Financial Action Task Force (FATF) to come out from the grey list.
The FBR also proposed reduction in sales tax rate from 17 to 12 per cent on import of LNG and RLNG if imported by the Pakistan State Oil (PSO) and newly established Pakistan LNG Limited. The tax rate on all fertilizer was proposed to reduce to two per cent. The FBR had proposed tax on fertilizer bringing down from five to three per cent, but the federal cabinet had slashed it down to two per cent.
In the Finance Bill 2018, the FBR has proposed getting powers to get details of passengers and crew from the airlines in a bid to enhance compliance for FATF requirements. The FBR’s Member Customs Zahid Khokhar told the Senate Standing Committee on Finance that the amendments proposed to the Customs Act through Finance Bill 2018 for getting details about passengers and crew prior to flying from Pakistan, and it was aimed at complying with FATF requirements. He said that this proposed amendment aimed at getting details about those who are frequent travellers.
In order to comply with the conditions of World Trade Organisation (WTO), the FBR proposed Authorised Economic Operator Programme to provide facilitation related to secure supply chains of imported and exported goods through simplified procedures with regard to regulatory controls. Pakistan had ratified WTO this facilitation agreement in 2014 under which it was bonding for providing facilitation to such multinational companies which were not found in any tax evasion case in last couple of years. FBR’s Member Customs Zahid Khokhar said that they were studying different models implemented in all other parts of the world before finalising its rules to implement this scheme in Pakistan. The committee recommended its smooth approval with the condition that the rules would be cleared from the senate panel before placing to operatialise this scheme.
The FBR also proposed power to use data exchange information for determination of customs value in the Finance Bill 2018. The FBR high-ups told the Senate committee that Pakistan and China had signed memorandum of understanding (MoU) for electronic data exchange information for sharing GDs (Goods of Declaration) with each other as it would help Islamabad significantly to overcome under invoicing in a big way.
The FBR also proposed withdrawal of commissioner power to be deputed at manufacturing unit to get actual record of production and now these powers have been given to the Board under the proposed Finance Bill 2018.
For film industry, the FBR proposed reduction in GST from 17 percent to 5 percent in the Finance Bill 2018. The FBR also proposed restoration of zero rating regime for stationary sector in the budget 2018-19.
The FBR has also proposed restoration of powers of Directorate General Intelligence & Investigation Inland Revenues related to Sales Tax and also inserted clauses into Finance Bill 2018 for providing protection to recoveries made by I&I IR as Lahore High Court (LHC) had given verdict against the Intelligence & Investigation wing of Inland Revenues by restricting its jurisdictions and powers.