June 22, 2007	Friday	Jamadi-us-Sani 06, 1428

KARACHI, June 21: Despite a 20 per cent increase in imports during the first 11 months (July to May) of the current fiscal, revenue collection on account of customs duty remained short by eight per cent compared to the corresponding period last year.Defective polices, including clearance of imported goods under Customs Administrative Reforms (CARe), have been blamed to be the major factor of this huge shortfall in customs duty collection.

Chairman, Karachi Customs Agents Action Committee, Abdul Ghaffar Bhundi, alleged that looking at the huge shortfall in customs duty collection, the CBR has now directed all the customs collectorates to fill in the gap which has now put all importers under pressure.

Citing examples, he said all sorts of refunds have been stopped to keep collection balance high, and guarantees are being encashed.

The auction process of detained goods has been fastened and duty adjustments are being made in a haste, without keeping in view the legal process, Mr Bhundi added.

Similarly, he alleged that disputed recoveries towards customs duty are also being recovered from customs agents and importers to meet the revenue target.

Instead of taking artificial steps and adopting pressure tactics on importers and their customs agent, he said, the CBR should have taken pragmatic measures which could help the economy as a whole and also collected higher revenue on account of customs duty.

He suggested to the CBR to restore SRO 574, allowing import of used vehicles, which resulted in bringing down premium on locally assembled vehicles.

It would also help break local assemblers’ monopoly and also save consumers from paying huge amounts towards premium.

Mr Bhundi assured the CBR that once the SRO 574 was restored, around rupee one billion would be collected on imported vehicles.

It would also help the national exchequer to meet its customs duty target which is lagging far behind last year’s collection.