Budget 2021-22: Retailers engaged in smuggled goods trade to be punished

ISLAMABAD: The Federal Board of Revenue (FBR) has taken biggest anti-smuggling measure in Budget (2021-22) to punish retailers engaged in the selling of smuggled goods.

Through the Finance Bill 2021, the FBR has taken some major anti-smuggling measures to check smuggling.

The FBR has included "retailing" in definition of smuggling to discourage retailers from selling smuggled goods.

The FBR has sought powers to confiscate such smuggled goods being sold by the retailers.

Moreover, customs officials can impose penalty of 10 times the value of the goods or imprisonment upto six years and to a fine not exceeding 10 times the value of such goods.

Under the proposed penalty regime for retailers, if any person without lawful excuse, the proof of which shall be on such person, acquires possession of, or is in any way concerned in carrying, removing, depositing, harbouring, keeping or retailing, or in any manner dealing with smuggled goods or any goods in respect to which there may be reasonable suspicion that they are smuggled goods, such goods shall be liable to confiscation and any person concerned in the offence shall be liable to a penalty not exceeding 10 times the value of the goods; and, where the value of such goods exceeds Rs300,000, he shall further be liable, upon conviction by a special judge, to imprisonment for a term not exceeding six years and to a fine not exceeding 10 times the value of such goods.

Other anti-smuggling measures included making shipping lines responsible for re-export of banned items imported in commercial quantities, increasing the pitch of fine in case of non-placement of invoice and packing list in container to inculcate compliance and discouraging smuggling by denying release of vehicles used repeatedly for smuggling against redemption fine.

Copyright Business Recorder, 2021