Federal Board of Revenue (FBR) informed the sub-committee of Public Accounts Committee (PAC) that recovery proceedings for Rs 41.7 million in big cases like M/s Ittefaq Foundry have been initiated, but no recovery has so far been made. Examining the Audit report of 2003-04 of Directorate General Audit Customs and Petroleum, the audit observed that an amount of Rs 41.7 million is recoverable and proceedings in big cases like M/s Ittefaq Foundry (Rs 5.56 million), M/s Friends Power (Rs 3.3 million), M/s Sandal Dyes (Rs 3.25 million), M/s Hafiz Khalid (Rs 10.03 million), M/s Milkway (Rs 6.61 million) and M/s Awan Textile (Rs 8.76 millions) have been initiated but no recovery has been made yet.
The committee was informed that the prescribed procedure for recovery of arrears amounting to Rs 1102.5 million (plus additional tax and penalties to be calculated at the time of recovery of government dues) was not applied in time in 99 cases. These cases were pending recovery for more than 12 years including recovery from M/s Ittefaq Foundry.
The committee met under the convenership of Syed Naveed Qamar which took up audit report of FBR for discussion for year 2003-04. In another case, the audit noted that Collector of Customs, Central Excise and Sales Tax Quetta did not seize 47 luxury vehicles such as Land Cursers, Pajero, Toyota Surf, Toyota Hiace Vans etc, temporarily imported into Pakistan from March 1999 to October 2002; these were not re-exported after the expiry of the stipulated period. This omission resulted in a financial loss of around Rs 53 million.
Chairman FBR informed the committee that the Foreign Office had confirmed that the record of vehicles was destroyed when the Consulate General of Pakistan in Kandhar was attacked by mob and premises was ransacked after the fall of the Taliban regime. However, the customs authority had requested the Afghan Ministry for reconfirmation as to whether the record relating to vehicles is available with them or not.
According to the provisions of rules 78 of the Customs Rules, 2001 (SRO 450 (I)/ 2001 dated June 18, 2001), no citizen of Afghanistan is permitted to import a vehicle into Pakistan on road pass, but if such person imports a vehicles temporarily he may be given delivery thereof without payment of customs duties for its retention in Pakistan for a period of 30 days against recommendation of Consulate General or Embassy of Pakistan in Afghanistan. This period is extendable to further 90 days on furnishing a bank guarantee. In case any vehicle so imported is not exported out of Pakistan within the stipulated period, it shall be wherever it maybe, seized and dealt with in accordance with the provisions of the Customs Act 1969. Chairman FBR informed the committee that two vehicles were confiscated and the board also wrote to excise and taxation offices about the vehicles. The committee is directed to furbish the report within six weeks and fix the responsibility.
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