ISLAMABAD, April 29: The Central Board of Revenue (CBR) is considering a proposal in consultation with the stakeholders to establish a comprehensive reference value database for maintaining uniformity in assessment of imported goods at all customs stations.
Well-placed sources told Dawn on Wednesday that the reference value, which would be compiled in two volumes, would help, to a great extent, in reducing the chances of under-invoicing and tax frauds causing harm to the local industries.
These books, after vetting, would be available at all customs stations with assessing officers that would facilitate the importers as part of the re-structuring of the tax administration.
A senior customs official, on condition of anonymity, told Dawn that CBR was facing opposition from the traders in this regard. He said that it would be a tough task for the CBR to set up the database as most of the chambers in the country were dominated by the traders, who have a big say in the government decisions.
They wanted unhindered import of goods and the value database would reduce the chances of under-invoicing, he said. The decision of establishing database was taken following the need for comprehensive compilation of reference value database.
Such a value reference guide could be very useful tool for the assessing officers and it would also help in maintaining uniformity of assessment at all customs stations, the official said.
It was observed that the occasional discrepancy in valuation of identical goods cleared from north and south cities of Pakistan was another area of concern for traders. According to them, there have been instances where identical goods cleared from Karachi were assessed at a value different than at Lahore.
Elaborating further, the official said that the minimum value in these books would not be binding for assessment purposes but it would be used as guidance in assessing the imported goods.
Under the provisions of WTO agreement on valuation developing countries could apply to WTO for maintaining for certain period minimum values for certain imported items, which might hurt the local industry.
This is legal recourse to check under-invoicing and protection of local industry. Pakistan has applied to WTO for this facility several items, however, the request has not been accepted by WTO so far, the official added.
Pakistan implemented the new GATT Code of valuation on January 1, 2000 which deals with the bonafide trade and which ignored the reality of rampant fake invoicing that was practised throughout the world including Pakistan.