Chairman Federal Board of Revenue (FBR) Shabbar Zaidi has warned of strict action against the import of Indian-origin products in the country using regional ports. He said that the tax authority is noticing import circumvention with respect to goods of Indian origin.
In his twitter post, Shabbar said that ‘Origin of import circumvention’ means declaration or representation of the wrong country of origin.
As per the World Trade Organization (WTO), rules of origin are the criteria needed to determine the national source of a product. Determining where a product comes from is no longer easy when raw materials and parts criss-cross the globe to be used as inputs in scattered manufacturing plants.
Rules of origin are therefore needed to attribute one country of origin to each product. They are the criteria used to define where a product was made and are important for implementing other trade policy measures, including trade preferences, quotas, anti-dumping measures and countervailing duties.
Earlier, the Supreme Court of Pakistan also accepted the revenue board’s contention that Capital Value Tax (CVT) is collectible where the property is transferred by a company.
Apprising the SC decision about acceptance of CVT collection, the Chairman FBR said,