Under-invoicing of commercial importers is destroying the industry

KARACHI: The Pakistan Business Council (PBC) has said massive under-invoicing, especially by commercial importers, is destroying domestic industry in all fields.

Massive under-invoicing and dumping of imported goods has increased, the PBC said in its 2022/2023 budget proposals submitted to the Federal Board of Revenue (FBR).

READ MORE: RBF Database Exploration Suggested for New Taxpayers

The council submitted proposals to document the economy and provide a level playing field for the formal sector.

He further said that information regarding the values ​​at which various customs checkpoints clear imported shipments is not publicly available. This encourages unscrupulous importers to under-declare the value of shipments to escape government revenue.

READ MORE: PBC recommends limiting cash beyond a certain limit

“The values ​​at which imported shipments are cleared through PRAL or CARE should be publicly available,” the PBC recommended.

The Government of Pakistan must insist on Electronic Data Interchange (EDI), for FTA and non-FTA imports from China and other major trading partners China and other major trading partners.

READ MORE: FBR proposed to exempt withholding tax on telecommunications services

“In the future, the requirement of EDI should be made mandatory for imports from FTA/PTA countries and major trading partner countries.”

The withholding tax rate on imports for commercial importers should be at least 2 percent higher than it is now and the withholding tax should be treated as an adjustable advance tax.

The assessment decision should be issued in consultation with trademark owners, i.e. who have valid trademark registration under relevant intellectual property laws.

READ MORE: Zero-rate tax required for imports of pharmaceutical APIs

Previous MARESA and Autism Alliance of Michigan talk about autism acceptance
Next Dave Ramsey has no credit score. Here's why it might not work for you