Despite a lapse of about two months, the Federal Board of Revenue (FBR) has not yet quoted its price for the purchase of Pakistan Automated Customs Computerised System (PaCCS) from its owner, Kuwait-based software supplier Agility, as was agreed between the two sides earlier. Maybe this is due to FBR's involvement in the budget making process.
Delay in purchasing PaCCS by Federal Board of Revenue is causing concerns among its users. One of the leading importers and President of PaCCS Users Club, Rizwan Khan Rathore, has urged FBR authorities to purchase the system from Agility before the 2011-12 federal budget is presented in the parliament on May 28.
Since priorities may change after the budget, it has been suggested that FBR should quote the price to Agility and finalise the deal to end the lingering uncertainty. He expressed hope that technical experts engaged to study and report on the issue must have evaluated the performance and key indicators to determine the present value of PaCCS.
Unnecessary delay in its implementation might again bring FBR and Agility face to face, resulting in confrontation. Needless to mention, Agility had extended the system on the condition that the FBR would pay the price to purchase the automated system. An assurance in this regard was given by FBR Chairman during his meeting with Agility officials earlier in Kuwait.
Rathore expressed satisfaction on revenue collection of Rs 1127 billion during July-May, 2009-10. The figure showed that FBR had broken all previous records of revenue collection. He hoped that the new budget would be business-friendly for the trade community across the country. At one stage, Abdullah Yousaf, a former chairman of FBR, had stated that FBR was the main institution to collect taxes, but there was need to increase capability through automation and electronic filing. Transparency in the taxation system could help plug the loopholes, he had said.
The background to the situation is multiple extensions of PaCCS by Agility to give space to FBR not to shut down the system because of its utility to Pakistan customs and considering traders' demand across the country to continue with the system.
FBR had initiated negotiations with Agility at the start of last month after Agility moved its technical staff from Pakistan customs to finally shut down the system. Following this development, FBR Chairman Salman Siddique took the matter seriously and travelled to Kuwait to talk to Agility on how best to continue this system in the country. While the FBR indicated to continue this system on public-private partnership basis, considering previous experience, Agility preferred to outrightly sell the system to the FBR.
As negotiations progressed, the FBR decided to purchase the system from Agility, and informed it to quote price shortly. Thereafter, FBR decided to invite technical experts to determine the present value of PaCCS. FBR Chairman again travelled to Kuwait to hold talks with Agility to withdraw the case from international court and not to go for arbitration against FBR. An assurance was given that PaCCS would be continued but it might take some time because of technical reasons.
After all these developments, Agility expressed its intention and decided not to proceed to court and wait for something productive from FBR end. PaCCS pilot project was designed for only one year to the extent of Karachi International Container Terminal (KICT). Total amount, which was to be paid to Agility was $200,000, out of which $70,000 has been paid so far, while the project has been going on for the last over six years now.
The government has earned billions of rupees from this automated solution operating at three terminals now. In PaCCS, the customs computer system is linked to the terminal operator's system. The consignments are released by customs and directly communicated to the terminal which delivers the containers accordingly to the owners.
Comments
Comments are closed.