Shaukat Tarin, the Federal Minister of Finance and Tax, has claimed that the government is taking steps to prevent under-invoicing, which is particularly prevalent in the import of petroleum products and results in significant revenue loss.
Tarin said Pakistan Customs was bringing the Single Window System to regulate the under-invoicing systems during the inauguration ceremony of the Automated Currency Declaration System at the FBR headquarters in Islamabad on Tuesday. He bemoaned the fact that the goods were being shipped from China and invoiced from Dubai.
He emphasized that the administration is committed to ending such practices and closing the gaps. “This is what we call the black sheep of our economy,” he remarked, promising the crowd that such acts would be exposed and those responsible would be captured.
The Minister stated that the Federal Board of Revenue (FBR) will be entirely computerized, and that the government would track down tax evaders.
“Taxation and foreign exchange is a very important component for Pakistan,” he said, adding, “We are trying to document the economy by recent legislation and reforms.” He said there was no tracing and tracking of foreign exchange in the country.
Dr. Ashfaq Ahmed, Chairman of the Federal Board of Revenue, stated that the currency declaration system would be applicable under Customs laws, and that automation would aid in the regulation of foreign currency under the Customs Act.
Earlier, he said, the declaration system manually worked. “There were many complications involved in the manual work and declaration and manipulative practices were not caught,” he added.
FBR was being transformed into a fully automated and digital corporation, he said. He claimed that the government was reaching out to the wealthy who were not paying taxes.
Because the State Bank of Pakistan has imposed a ceiling of USD 60,000 for repatriation of foreign cash, Chairman FBR remarked that declarations might be taken from anyone in accordance with international practice.
He stated that the FBR previously lacked a method to track who stole the cash and how much they returned. “No one will be able to carry an extra dollar after automation,” he revealed.
IBMS and VBok will be immediately linked to the currency declaration system. This system was created by the National Database and Registration Authority (NADRA), and it will be supervised by the Federal Investigation Agency (FIA) and the FBR.
“Real-time data would be sent to SBP, FIA, Inland Revenue Service, and NADRA using this system,” Chairman FBR stated. He also stated that currency dealers would be connected to the FBR’s point-of-sale system.
Earlier, Asad Tahir Jappa, a spokesman for the FBR, told the audience that the FBR was taking initiatives to combat money laundering.
Sanaullah Abbasi, Director-General of the FIA, and Tariq Malik, Chairman of NADRA, were also present at the occasion.
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