Collector of Customs, Model Customs Collectorate (Appraisement) Lahore, Muhammad Jamil Nasir, claimed on Thursday that customs duty collection has registered an increase of 36 percent per annum because of the reforms he has introduced at the dry ports. "This 36 percent per annum increase in revenue is higher than the national growth of revenue which is around 22 percent at present," he added. Interestingly, he added that the overall growth of duties and taxes has increased to 28 percent at three dry ports in the city of Lahore which is lurking at nearly 8 percent countrywide.
Talking to Business Recorder, he said tackling a situation arising out of the imposition of 0.9 percent infrastructure road cess by the government of Punjab in 2016 proved the tipping point of achieving such a marvellous revenue growth results.
He pointed out that achievement of revenue target and tackling the issue of 0.9 percent infrastructure road cess were two major issues when he took charge as collector. "Manufacturers and importers were objecting to the cess, pleading that it was adding to their cost of business in Punjab as no such cess is being charged at the Karachi Port."
He said this situation created disincentive for manufacturers and importers and they started preferring the Karachi Port. "Retaining business was a real challenge when I took charge at Mughalpura Dry Port in 2017. The cess was imposed in 2016 and its trickledown effect started irritating importers gradually," he said.
The Federal Board of Revenue (FBR), on the other hand, was demanding more revenue by the end of every fiscal year. He introduced the idea of trade facilitation to compensate the impact of 0.9 percent cess through speedy clearances and abolition of informal payments to the customs staff at dry ports. He said right person for the right job strategy was adopted to meet the purpose. Meanwhile, new induction through FPSC got in, and Jamil appointed them on key positions despite a resistance. A post verification cell was set up to control any compromise of duties and taxes as the newcomers were not well-versed with the assessment process.
He further mentioned that all the Collectorate at three dry ports, including Mughalpura Dry Port, Thokar Niaz Baig Dry Port and Prem Nagar Dry Port, has become corruption-free dry ports. "Not a single informal payment is made on these ports which was very normal in the past." He said the FBR supported him in this respect that led to success of this model at dry ports.
He said the concept of Feed and Suggestion Tool (FAST) was also introduced by him in February 2018. It was a simple application. Soon a clearance or any other transaction takes place from this port, the agent/importer will receive a message from the Collector inquiring whether he was forced to grease the palm during the process. The FAST has also broken down the monopoly of clearing agents as they could not fleece money from importers and manufacturers in the name of clearance from ports. "On 16th July, the FBR had implemented this tool countrywide," he told with a deep sense of pride.
He also focused on infrastructure. He had set up a laboratory at the port. It would be a state of the art lab. It would be connected through the concept of reducing cost of doing business and duty and taxes. He was sending products to Karachi port or PSCIR for testing purposes. Delay was causing demurrage to the customers. Therefore, we decided to resolve the issue once and for all and set up a lab with the cost of Rs 7 million.
He has also established a state of the art library at the port including books of relevant law and judgments of various past years. Similarly, a conference room with all modern tools to conduct out of station video conferences is in place. Jamil said this whole process has been completed successfully in a short period of four months.
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