The Central Board of Revenue (CBR) has directed all collectors of customs to control the menace of under-invoicing, misdeclaration and leakage of revenue as the tax officials have removed all the procedural difficulties faced by importers.
Sources said that a daylong 'collector's conference', chaired by CBR Chairman Abdullah Yusuf, was held here on Tuesday in the Planning Commission to review the performance of collectorates in 2003-04, and to evolve a strategy to accelerate the process of revenue collection.
All collectors of customs, CBR Members and Director General Customs Intelligence were present.
Regional tax collectors of customs pledged to make concerted efforts for achieving revenue targets besides speedy payment of duty drawback/rebate, clearance of consignments, processing of adjudication matters and expansion of tax net.
In his opening remarks, CBR Chairman lauded the achievements of collectorates regarding revenue collection during 2003-04. He said that 6.4 percent growth rate achieved in last fiscal year was the highest for past many years and was reflective of successful economic policies of the government.
Commenting on tax collection, the Chairman said that although it seemed high but it was still not commensurate with the required GDP-tax ratio. The tax machinery has to improve this ratio by increasing collection and broadening the tax base.
Referring to various tax concessions announced in the Budget, Abdullah observed that these measures would certainly generate economic activity and consequently CBR would be able to achieve target of Rs 580 billion in 2004-05.
On the reforms process, he said that the positive change in the taxation system would make life easier for taxpayers. It should be the system, which must deal with the problems not the individuals.
While reviewing the performance, the Chairman and collectors discussed threadbare issues relating exports, duty drawback, clearance procedure, transit and Duty and Tax Remission for Export (DTRE) scheme. Other issues included revenue collection during 2003-04, targets for 2004-05, recovery of arrears, disposable cases under adjudication anti-smuggling measures, overstayed consignments in bonds, under-invoicing, misdeclaration and transshipments.
Custom officials told the meeting about the corrective measures for controlling under-invoicing and misdeclaration at the import stage and over-invoicing and over-declaration at the export stage. The menace of under-invoicing still exists, which needs prompt measures to save the government revenue.
Earlier, Member (Customs) Ramzan Bhatti, informed the meeting that revenue collection by customs in last financial year had exceeded targets.