The Federal Board of Revenue has started verification of customs valuation for large number of imported items to prevent revenue leakage in future. Sources told Business Recorder here on Monday the FBR has started an exercise to verify customs value of imported goods for which a number of items have been identified.
The FBR has decided to incorporate new items into the existing valuation rulings to determine customs values of maximum items. The frequent changes in customs values for adding more items in past rulings might decrease revenue. In this regard, FBR has issued instructions to the Directorate General of Customs Valuation, Karachi to verify customs values of maximum items.
The purpose of the whole exercise is to ensure increase in revenue collection as a result of accurate determination of duties, taxes on the imported items. It is a big step to determine accurate customs values of thousands of items which would enhance customs revenue.
Sharing an important measure to check under-invoicing sources said the FBR is framing a new valuation website containing information about the international values of thousands of items. This would be first of its kind of website having a comprehensive database on the valuation of imported items. The reference price of commodities and information on international prices would be included in the valuation website.
Sources said that the FBR has effectively implemented decision of placing packing list/foreign invoices inside containers. This has helped in accurate determination of duties and taxes based on original invoices available inside the container. Responding to a query, sources said that the seniority issues of the customs and excise group would be resolved on top priority basis.
The creation of Inland Revenue Services is in line with the administrative setup of most of the countries. Around 95 percent countries have implemented Inland Revenue Services for harmonisation of domestic taxes. Pakistan has to follow the best international practices under the implementation of reforms. Sources clarified that the concerns of the customs and excise group would be removed for their smooth functioning within the Inland Revenue Services.