Customs to be separated from tax collection

Finance Minister Dr Shamshad Akhtar said on Thursday the government will separate the customs from the revenue collection mechanism as part of the reforms in the Federal Board of Revenue (FBR). Speaking on the second day of the Future Summit organised jointly by Habib Bank Ltd and Nutshell Group, Dr Akhtar said the role of the customs will now be limited to “tracking” smuggling while the revenue collection will remain the FBR’s mandate. Operating within the FBR, the customs’ role is to collect taxes on international trade while stopping the cross-border movement of contraband goods. Its share in the FBR’s total tax collection — which also includes income tax, sales tax and federal excise duties — is usually less than 15 per cent. “This is a part of the restructuring of the FBR,” she said, adding that a notification to this effect will be issued next week. “There’ll be more notifications coming out on the restructuring of the FBR,” she said.