By Abdul Wajid Khan

The Federal Board of Revenue (FBR) is determined to expedite the drive against smuggling to support local industry and play its role in the economic growth of the country, WealthPK reports.

According to an official document, a copy of which is available with WealthPK, FBR is aware of the smuggling taking place primarily through long and porous Pak-Afghan and Pak-Iran borders with multiple unfrequented routes.

It says that due to limited resources and manpower, Pakistan Customs has no presence on the unfrequented routes and has to rely on law enforcement agencies in the area. The anti-smuggling powers have been entrusted to Pakistan Rangers, Frontiers Corps, Pakistan Coast Guards and Pakistan Maritime Security Agency in the border areas.

The document says that the government has taken various steps to curb the menace of smuggling. Strict measures taken by Pakistan Customs against smuggling have resulted in a significant increase in the seizure of smuggled goods.

FBR Chairman Asim Ahmad said in a statement that the Board was committed to controlling tax evasion and had undertaken various administrative measures in that regard.

“Tax evasion is an illegal activity and tax evaders will be subjected to criminal charges and substantial penalties to ensure that due taxes are rightfully deposited in the national exchequer for growth of the national economy,” he said.

According to the official figures, Pakistan Customs seized different goods worth Rs185 billion during the last four years. Smuggled goods worth Rs66 billion were seized in the financial year 2021-22, Rs58 billion in 2020-21, Rs36 billion in 2019-20 and items worth Rs25 billion were taken into custody in the fiscal year 2018-19.

These seized goods include smuggled vehicles, betel nuts, fabrics, cigarettes, auto parts, electronic goods, petroleum products, gold, silver and other misalliance items. The government collected Rs8,310 million through the auction of the seized items during the financial year 2021-22.

The report says that during 2021-22, a total of 3459 non-customs paid vehicles valuing Rs11 billion were seized by Pakistan Customs. The formal procedure is adopted under the Customs Act, 1969, in respect of non-customs paid confiscated vehicles.

Once a smuggled vehicle is taken into custody by Pakistan Customs, a seizure report is prepared under section 168 of the Act and sent to the adjudicating authority for proceedings as per section 179 of the Act.

The adjudicating authority issues a show-cause notice under section 180 of the Act and has to decide the case within 90 days of the issuance of the notice. As a result of adjudication proceedings, if the vehicle is confiscated, it becomes the property of the federal government under section 182 of the Act and FBR is empowered to dispose of it through open auction.

An appeal against the orders of the adjudicating authority can be filed with the Appellate Tribunal under section 194A of the Act within 60 days. In case the appellant is aggrieved by the order of the Tribunal, a reference can be filed in High Court within 90 days. Once the legal proceedings are completed, the vehicles are put to auction under section 82 of the Act.

The total number of non-customs paid confiscated vehicles keeps on varying as the same are put to auction and new seizures are made continuously. FBR also maintains strict vigilance against tax evasion in tobacco and other sectors.

According to another document, on receiving information, the Inland Revenue Enforcement Network (IREN) squad of the regional tax office Rawalpindi, visited a warehouse in Jhelum and seized 60 cartons of non-duty-paid cigarettes.

The seized cigarettes were of local brands and the cartons contained 0.6 million sticks. The raid involved revenue of Rs1.26 million in Federal Excise Duty (FED) and Sales Tax, according to the document available with WealthPK.

Credit : Independent News Pakistan-WealthPk