ISLAMABAD, July 16: Federal Board of Revenue Chairman M. Abdullah Yusuf on Monday admitted that the Customs Department was facing the menace of under-invoicing and mis-declaration resulting into massive revenue loss to the kitty.Chairing the first quarterly conference of collectors of customs and collectors (Appeals), the FBR chairman said that the major problem faced by the department was the valuation of imported goods and urged the collectors to effectively deal with these issues.

He pointed out that the FBR had lost sizeable amount due to under-valuation during the last fiscal year. “We must not allow this menace to persist this year for which the collectorates are required to strictly follow the newly-evolved valuation system to avoid revenue loss,” he added.

He felt that under-valuation was also damaging the local industry and weakening its competitiveness and cost-effectiveness. Another problem which is required to be dealt seriously and effectively was smuggling, he observed.

While reviewing the performance of various units of the customs department, the FBR chairman said that reforms were introduced to bring about a major change in the entire taxation system for mutual benefit of all stakeholders — the government, taxpayers and the tax officials.

“We must not allow the vested interest to sabotage our efforts,” he stressed. “We must complete our reforms programme within stipulated time.”

Member Customs Shahid Rahim Sheikh highlighting the performance of various collectorates informed the conference that 99 per cent of the revised duty collection targets during the last fiscal year had been achieved.

Member (Legal) Mumtaz Ahmed in his presentation discussed the current legal status of the FBR. He reviewed the pendency of adjudication cases and strategy evolved for their disposal in due course of time.