QUETTA, Sept 7: The chairman of the Central Board of Revenue on Wednesday ruled out any possibility of allowing the import of re-conditioned cars and also of withdrawal of tax proposed in the 2005-06 budget on cheques for over Rs25,000. “The government is not considering plans to allow the import of re-conditioned cars into the country,” Mr Abdullah Yousaf told a press conference at the Customs House. However, “there is no ban on importing new vehicles,” Mr Yousaf said.
The CBR chairman said the government had also allowed Pakistanis living abroad to bring cars under their personal use to the country through the gift scheme. He said that 50 per cent duty was normally charged for such vehicles.
In reply to a question about withdrawal of tax on cheques above Rs25,000, Mr Yousaf said the government had no intention to review its decision in this regard. For a transaction of Rs100,000, he said, the government was charging Rs75 only. This tax is “imposed on those people who are not paying any tax”, he added.
Referring to the withdrawal of anti-smuggling powers from other law enforcement agencies in Balochistan, including Frontier Corps and Coast Guards, he said the Central Board of Revenue was considering evolving a policy and strategy to give their powers to customs.
He said the main focus of CBR would be on preparing a strategy and tariff through which smuggling could be brought under control. “We can control smuggling through reducing tax tariff,” he said and added that government was seriously considering reducing tax tariff. He said the government had reduced tariff on cloth that resulted in reducing the smuggling of cloth from 52 to 15 per cent.
The CBR chairman did not agree with a questioner that the local industry would be badly affected by tax tariff reduction. “There will be no affect on local industry,” he said.
He said that Pakistani industry was competing in the international market after abolishing quota system in United States and European countries.
“We are trying to establish an investment friendly atmosphere in the country that would help in increasing the country’s overall GDP and would also enhance revenue,” Mr Yousaf said. He said that government has increased its revenue target gradually and the last target was 590 billion and this year it was estimated to be Rs690 billion.
He agreed with the contention that Pakistan’s long borders with three countries had made it difficult to check smuggling. “That is why the government is considering taking control by reducing tax tariffs,” he said.
Answering another question, he said the government had withdrawn duty on various exports items in the country to encourage the export business.
He said that presently 16 custom stations were working in Balochistan and now after ending anti-smuggling role of FC and coast guards the CBR was considering how many more check posts or custom station should be established in Balochistan.
Mr Yousaf said that petrol was cheap in Iran since the government there had given a $10 billion subsidy. This step has encouraged the smuggling of petrol, he said. Still, he said, Pakistan and Iran were considering various measures to check the practice as it was harming the economy of the two countries.
In response to another question about smuggling of vehicles from Afghanistan, the CBR chairman said that due to the porous border such vehicles were coming into the country and people were getting these vehicles registered on fake documents in the provinces. He said the government was evolving a strategy to curb the smuggling of vehicles. However, he denied that the CBR had given a “green light” in this regard.