F.P. Report
KARACHI: Caretaker Finance Minister Dr. Shamshad Akhtar underscored the imperative of doubling the tax-to-GDP ratio to achieve development goals during a ceremony marking World Customs Day at Customs House Karachi.
Addressing the gathering, the Finance Minister outlined the challenges in customs reforms, emphasizing the need for a simplified system to combat issues like money laundering, smuggling, fiscal fraud, and tax evasion, which adversely impact the economy.
Dr. Akhtar stated that the reform agenda includes reducing duty rates and the number of Statutory Regulatory Orders (SROs). He highlighted the ongoing consultation process for reforms in the Federal Board of Revenue (FBR), involving discussions over the past 5 months and incorporating recommendations and schemes from FBR members. The Finance Minister expressed confidence in surpassing a revenue target of over 4 trillion rupees.
The integration of transit trade systems at border stations, supported by the Asian Development Bank, was also discussed as a means to expedite trade clearance without human intervention, potentially unlocking a revenue potential of 2 to 4 trillion rupees in Pakistan. Dr. Akhtar stressed the importance of strengthening taxation and valuation processing to bolster revenue.
In the context of financial transparency, the Finance Minister shared that the Ministry of Energy and Ministry of Finance are collaborating to inform the International Monetary Fund (IMF) about the revolving loans of Pakistan Telecommunication Company Limited (PTCL) and Sui Southern Gas Company (SSGC).
Addressing the event, Dr. Farid Iqbal, Member Customs Operations FBR, commemorated the global role of customs administrations in facilitating trade and protecting borders. Under the theme “Engaging Traditional and New Partners,” he highlighted the evolving dynamics of international trade and the critical need for collaboration.
Speaking on the Customs Department’s achievements, Collector of Customs Basit Abbasi noted the successful anti-smuggling campaign, resulting in the seizure of smuggled goods worth 3.5 billion rupees in 1000 cases over the last 7 months. (INP)
