In a significant move to tackle the persistent issues of smuggling, under-invoicing, and misdeclaration within the country’s revenue collection system, the Federal Board of Revenue (FBR) has officially established the Office of the Director General (Special Initiatives — Customs). The newly established office aims to identify and close any existing loopholes in the revenue collection process, streamline customs procedures, and curb illegal practices that contribute to significant revenue losses.
According to an official notification issued by the FBR on Friday, the Competent Authority has approved the creation of the Office of the Director General (Special Initiatives — Customs) along with two Directors (Special Initiatives — Customs) stationed at the FBR headquarters. This new office will be responsible for coordinating with field formations and other relevant bodies to examine the current system and pinpoint any inefficiencies that may be contributing to the loss of national revenue.
One of the main goals of the new office is to combat practices such as misdeclaration, under-invoicing, and mis-invoicing, which have long plagued the customs and tax collection systems in Pakistan. These illegal activities undermine the effectiveness of the FBR’s revenue generation efforts and lead to a substantial loss of revenue for the national exchequer. The FBR’s efforts to establish this office are part of its broader strategy to improve tax collection and ensure that all imports and exports are accurately reported.
The new office will also focus on preventing smuggling, which continues to be a major issue in Pakistan’s trade and customs sectors. Smuggling undermines legitimate businesses and deprives the government of potential revenue, further straining the economy. The FBR’s aim with this initiative is to create more robust mechanisms to detect and prevent smuggling at all stages of the customs process.
The Director General (Special Initiatives — Customs) will be tasked with coordinating with other ministries, divisions, and departments involved in customs-related matters. This collaboration will help ensure that all relevant parties are aligned in their efforts to curb illegal practices and strengthen the revenue collection system. Additionally, the office will work closely with provincial authorities to ensure seamless coordination across different levels of government.
Key functions of the Office of the Director General (Special Initiatives — Customs) include maintaining communication and information-sharing with field formations, other governmental bodies, and provincial authorities regarding customs-related matters. The office will also focus on identifying any weaknesses in the revenue collection system and proposing actionable measures to close those gaps. This will involve regular assessments of the system to ensure that all potential loopholes are identified and rectified.
Furthermore, the office will develop and implement strategies to address and eliminate attempts at mis-declaration and under-invoicing. These practices, where goods are declared at lower values than their actual worth to reduce customs duties, have long been a challenge for Pakistan’s revenue system. By focusing on these issues, the FBR aims to ensure that all goods are appropriately valued and that taxes are collected fairly and transparently.
The establishment of the Office of the Director General (Special Initiatives — Customs) is expected to remove several professional bottlenecks that have hindered the effectiveness of the tax collection process in the past. By tackling complex issues such as mis-declaration, under-invoicing, and smuggling, the FBR hopes to streamline efforts to prevent revenue loss and ensure a more efficient and transparent customs system.
The creation of this special office reflects the FBR’s commitment to strengthening Pakistan’s customs and revenue collection mechanisms. With enhanced coordination and a focus on addressing critical issues like smuggling and under-invoicing, the FBR aims to close gaps in the system and contribute to a more robust national revenue stream. This initiative is expected to play a vital role in safeguarding the country’s economic stability and improving the overall efficiency of the revenue collection process.