Suggestion to make provincial import cess part of goods declaration

Customs agents have suggested that the payment of the provincial cess on import should be made part of the goods declaration (GD) like other Federal taxes to facilitate quick and cost effective clearance of the goods. The suggestion was made by Karachi Customs Agents Group (KCAG) President Farrukh Saleem at a meeting with Collector of Customs (Appraisement) Azhar Majid Khalid held at the Customs House here recently.
He said there was no operational problem with regard to correct levy, collection of provincial import cess and its subsequent reporting to the provincial government, but the importers had to prepare two separate pay orders, one for the Federal taxes and other for the provincial levy, which delayed the clearance as well as increase in the cost.
Responding to the suggestion, the Appraisement Collector said the two parallel systems - Pakistan Revenue Automation Limited (Pral) and Care - would be operational in the near future, adding the Pral's present system of challan deposition for cess could not be done away with immediately.
However, in Care, a paperless environment was being envisaged and 40 branches of the National Bank of Pakistan (NBP) would be on line which would electronically inform the customs and the provincial Excise Department about reconciliation of payments.
However, the existing arrangements were likely to continue for another six months in view of the existing pace of the reform process, he added.
Sindh Excise and Taxation Director Shoaib Siddiqui informed the meeting that the government had no problem with the existing arrangements of levy collection and reporting of provincial tax.
Due to separate pay order and reporting, there might be chances of incorrect reconciliation, he pointed out.
However, he was of the view that the issue, raised by Farrukh Saleem on behalf of the importers, was worthy of consideration for an appropriate action.
Concluding, Collector Azhar Majid said there appeared no problem in inclusion of entry of cess like other taxes in the GD. However, the issue needed to be further deliberated at the Central Board of Revenue (CBR), Pral and provincial government level for thrashing out detailed modalities. The objective was to reduce the time.
He said the Care project was already taking care of all aspects and the problem discussed at the meeting should also attract a fair treatment in foreseeable arrangements and in that regard a follow-up meeting would be held in the near future.
The meeting was also attended by representatives of the NBP, Customs House branch, and the Pral.