01 BUSINESS B Thursday, 21 March, 2013 Govt focusing on economic diplomacy to promote economic interests. – Aizaz Ahmed, additional foreign secretary KARACHI ISMAIL DILAWAR K ARACHI Port Trust (KPT) Chairman Javed Hanif Khan re- duced the 14-member Board of Directors of the Karachi Dock Labour Board (KDLB) into a rubberstamp body by awarding “illegally” over Rs 2.2 million to a retired KDLB official with a stroke of a pen. Muhammad Safdar, who had retired as a secretary or executive officer of the KDLB after reaching the age of superannu- ation on March 31, 2011, appears to be ben- eficiary of the royal bounty shown by the KPT chairman. “The Chairman has approved re-fixa- tion of the pay of executive officer and pay- ment of the difference amount of pay and allowances and pension/commutation to the officer,” reads an office order issued by the KDLB’s Personnel and Admin depart- ment on the 3rd of last month. The sanctioned amount granted to Saf- dar is in excess of Rs 2.256 million, of which over Rs 1.367 million and Rs 0.888 million were paid, respectively, on account of difference of pay and allowances and difference of pension commutation. The payment was made through the payee ac- count cheque. It is, however, interesting to note that Safdar had already received 100 percent of his claims against pension/commutation in March 2011 when he had retired from KDLB service. “Enclosed please find claim of 100 per- cent commutation of the subject employee duly sanctioned by the competent author- ity,” reads an earlier office order issued on June 9, 2011 by the same department of the KDLB. Copies of the two orders, Part-II Num- ber 48/2011 and Part-I Number 11, are available with Pakistan Today. The KDLB secretary, who after enjoy- ing a two-year extension has finally been sent packing from March 31 (2013) by a re- cent verdict of the Sindh High Court (SHC) barring his third-time extension, had then received over Rs 7.33 million against his post-retirement 100 percent claims. The latest payment of over Rs 2.256 million Safdar has been awarded by the KPT chairman was made by the KDLB as a “difference” amount arising out of the 40 percent raise the PPP-led federal govern- ment had announced for government em- ployees in the last two fiscal budgets. A sitting board member of the KDLB claims that payment of the huge sum made in favor of the outgoing secretary KDLB under the head of “difference of pay and al- lowances of pension/commutation” was il- legal. Referring to the KDLB Act 1973, which governs the running of the Labour Board, the board member said the KPT chairman was not entitled to granting mil- lions to any of his blue eyed boys without approval of the KDLB board. “The board and not the chairman (KPT) is the competent authority for taking all such decisions,” he asserted adding that even the KDLB’s Administrative Body could not bypass the 14-member apex body in terms of decisions pertaining to KDLB’s affairs. He recalled that even the Administra- tive Body had rejected Safdar’s demand over a couple of weeks ago. “The KPT chairman must quote a piece of law under which he bypassed the Board and approved such a huge amount to him,” the member said. He went on to claim that even the use of the KPT chairman’s discretionary fund was limited, under the relevant laws, to Rs 50,000 with that of secretary KDLB not more than Rs 20,000. Moreover, a source privy to the matter claimed that Safdar was demanding some Rs 2.6 million more from KDLB as a dif- ference amount. “The KDLB’s Chief Ac- countant and Audit Officer have expressed strong reservations over the fresh demand,” the source said. Further, the outgoing secretary also has a claim over a government car that, he be- lieves, should be given to a retired federal government employee in accordance with the relevant rules. The KPT, KDLB, Port Qasim Authority, Pakistan National Ship- ping Corporation, Pakistan International Airline etc are federal agencies governed by the federal laws. Rubbishing the outgoing executive of- ficer’s claims, the KDLB board member contended that the difference was not ap- plicable in case of Safdar who had retired much before the federal employees were given salary increase by the political gov- ernment. “He (Safdar) had retired when the salary raise took effect from July 2011,” he argued. Despite repeated attempts, no one from KPT’s Public Relations department was available for comments. KPT chairman awards millions to ex-official ‘illegally’ CHAIRMAN CANNOT GRANT HUGE SUMS SANS BOARD’S NOD, SAYS A MEMBER The KDLB secretary, who after enjoying a two-year extension has finally been sent packing from March 31 (2013) by a recent verdict of the Sindh High Court (SHC) barring his third-time extension KARACHI STAFF REPORT The Federal Board of Revenue (FBR), whose tax refunds are higher than its col- lections, is going to make public the names of some six million tax evaders under its “Name & Shame Programme”. An FBR official revealed this at Karachi Chamber of Commerce and In- dustry (KCCI) on Wednesday. The offi- cial said the FBR had collected data of six million tax evaders to whom notices would soon be served and in case of a failure to pay the minimum taxes they would be shamed by their names be made public under the Board’s “Name & Shame Programme”. Further, he said the FBR’s tax re- funds had exceeded the tax amount col- lected by the Board. “This points out loopholes in the sys- tem and the indulgence of some FBR of- ficials in corruption,” Muhammad Raza Baqir, Member Inland Revenue, Opera- tion at the FBR, said in a meeting with businessmen led by President KCCI Muhammad Haroon Agar at the Karachi Chamber. His remarks came after the KCCI President expressed his reservations over the FBR’s recently-issued “discrimina- tory” SROs to give amnesty to some blue-eyed taxpayers. Asking the KCCI for proposals on the controversial SROs, Baqir viewed that if the chambers and associations could take re- sponsibility and verify the gen- uine cases, the FBR could re- lease refund claims and a rele- vant system can be installed at the KCCI. He said the tax-to-GDP ratio was very low; out of 180 million Pakistanis the percent of taxpay- ers was only 0.7. He said 25 percent rev- enue was collected from taxes levied on petroleum products. Baqir said 50 percent of the exports were from textile sector which was zero- rated. There were 130 to 140 items falling under zero-rating. The FBR official said fake and flying invoices and corruption could not be eliminated as the FBR lacked the capac- ity to check frauds. If they didn’t pay the minimum taxes under amnesty scheme, the FBR would make their names public, he warned. Baqir said FBR had no choice but to give amnesty and the de- partment did not hold the capacity to handle new six million tax- payers. Muhammad Haroon Agar President KCCI said business com- munity was con- cerned over and had rejected the recent con- troversial SROs, numbering 212(I)/2013, 154(I)/2013 and 98(I)/2013, issued unilaterally by the FBR. The FBR has recently issued SRO 179(I)/2013 to provide amnesty to such fraudulent elements allowing them to pay just two percent Sales Tax instead of five percent as levied under SRO 1125(I)/2011. “The discriminatory SROs being is- sued one after another were tantamount to adding up further to the sufferings and multiple threats already faced by the business community in the city,” Agar said. He asserted to rescind the aforemen- tioned SROs and immediately consult all the concerned stakeholders in this regard. Sweeping changes in taxation policy and rules through number aforemen- tioned and other SROs had caused a neg- ative impact on business and industrial activities due to higher rates of sales tax and assigning the role of withholding agent to exporters, importers, suppliers and processors. He demanded that all SRO’s and changes made in rates of Sales Tax, In- come Tax and rules introduced after 31st December, 2012 must be held in abeyance and their implementation should be deferred until consultations are held with all stakeholders, chambers and trade bodies. Former President KCCI Majyd Aziz, Senior Vice President Shamim Firpo, Vice President Nasir Mehmood and the Managing Committee Members and KCCI’s members from trade and industry particularly from textiles, chemicals and yarns also participated in the meeting. FBR ready to name and shame 6 million tax thieves Out of 180 million Pakistanis, only 0.7 percent pay their taxes PCF constituted for protection of public rights KARACHI: Representatives of different consumers associations on Wednesday constituted Pakistan Consumers Federa- tion (PCF) for protection of consumers rights in the country. During the meeting, NGOs actively in- volved for protection of consumer rights and raising public awareness about their rights as consumers were also present. They unanimously agreed to form a joint platform, “Pakistan Consumers Federa- tion,” so as to strongly plead the con- sumers’ cause. All major organizations Consumers Association of Pakistan, Helpline Trust, Consumer Foundation, National Forum for Environment and Health and Consumers Forum signed a joint declaration that sought promulgation of relevant laws at federal and provincial legislature by the forthcoming elected as- semblies. It was agreed that awareness at all levels has to be created to curb the menace of counterfeit and fake products besides protecting people against ex- ploitation in form of profiteering. The signatories agreed that campaigns would be initiated on immediate basis so as to ensure that these issues are adopted on priority by the public representatives in next few months time. It was also agreed that efforts would be made to sensitize masses about their rights as consumers and their responsibility to acquire these. Involvement of all government institu- tions, forums, accreditation bodies and implementation groups would also be taken on board, agreed the signatories. The resolution was strongly endorsed by FPCCI’s standing committee on “Brands Protection and Promotion,” and its stand- ing committee on Consumer Rights Pro- tection. The body in collaboration with above mentioned NGOs had only re- cently organized and extensive session to commemorate World Consumers Day. On the occasion Shaikh Rashid Alam, chairman FPCCI standing committee on brands protection and promotion had said that safety of consumer rights was a cor- porate responsibility of all industrial groups. This, he said was as important as the safety of industries working with documented economy and contributing to the exchequer and safety of intellectual property of legitimate brands operating in marketplace. He on the occasion said trend must be curtailed under which sketchy consumer organizations are being created by unscrupulous elements in their self-interest. APP SECP makes online filing of returns mandatory for listed firms KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has made it mandatory for all listed companies to file documents, returns, accounts and applica- tions, meant to be filed with the SECP, or the Registrar, through SECP’s eServices on- line filing facility. The SECP issued a notification in this re- gard on March 13, 2013. The requirement shall come into effect after two months of the date of notification. The requirement has also been made applicable to companies which filed their last statutory documents through eServices or will file any statutory document through eServices from the date of applicability of the notification. Earlier, this requirement was only applicable to companies which had been incorporated through eServices online filing facility. The online filing has been made mandatory to move towards automated regulatory regime of the SECP, in line with the objec- tive of providing services with efficiency and in minimum possible time. E-Services filing facility is an easy and hassle-free mode of submission for companies to make statutory filing, coupled with an added fea- ture of smaller fees as compared to man- ual/physical filing. STAFF REPORT Guidelines regarding smuggled cars on FBR website SIALKOT: All necessary information and guidelines have been placed at Federal Board of Revenue (FBR) website “www.fbr.gov.pk” for the convenience of general public with regards to the assess- ment of duties/taxes applicable on vehicles of different model or engine capacity under the aforementioned SRO. Collector Customs, Sambrial Dryport, Dr.Sarfraz Ahmad Warraich told APP here Wednesday that on the special directive of FBR Chief, Ali Arshad Hakeem, a counter under the supervision of Ejaz Shah, a deputy collector customs has been estab- lished at the collectorate to facilitate and expedite the process of regulation of smug- gled vehicles within the ambit of law. He said that during the last one week, users of nearly 59 smuggled vehicles have so far ap- proached for regulation and their applica- tions are now in process as per policy of the FBR. Elaborating, he said that FBR has is- sued guidelines to maintain uniformity in implementation of the scheme by the field formations. APP 16-17 Business Pages (21-03-2013)_Layout 1 3/21/2013 3:19 AM Page 1