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FBR strategies & smuggling in Pakistan

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Muhammad Nadeem Bhatti

PAKISTAN is one of the few countries in the world, where a number of taxpayers are less than one-fifth of the country’s population.

The main reason behind this is; Incomprehensible, and outdated laws of the Federal Board of Revenue (FBR) and poor performance of Pakistan’s one of the most elite cadres of Civil Services (Custom Intelligence).

The department is serving as the guardian against the smuggling of goods, money, and drugs through borders, roads, and marine in the country.

Every year, it provides huge revenue to the Government of Pakistan. Unfortunately, for the last 3 decades, it has been performing poorly.

According to some estimates, the smuggled goods are worth more than 11% of the GDP of the country and that is really alarming for a slowly developing country like ours.

I am astonished since the last 3 existing governments did not take notice properly and that could be the cause of poor industrialization and tax collection in Pakistan.

If we look back into history, it can be said that the smuggling of drugs increased 4 times after the migration of Afghanis during the Soviet-Afghan war when more than 3 million Afghanis migrated to Pakistan in 1979.

Still, tons of drugs, the latest electrical equipment, and household goods entered our country without any customs duty and taxes.

This free smuggling across the country is destroying our economy in a way we cannot even imagine.

Moreover, our so-called custom intelligence is somehow involved with smuggling mafia and drug suppliers who pay them a hefty amount as a bribe to covering up their sin.

Don’t the officers know from where and how much quantity is there in long Lorries and trucks? Definitely, they know everything. Without their assistance, it is impossible to bring smuggles goods into our country.

Drug abuse is rapidly increasing in Pakistan, especially among youth including those in colleges and universities, resulting in serious social and health indications.

According to some recent estimates, there are around ten million drug addicts in the country of which more than two million are believed to be in the age of 18 to 24.

The growing trend of drug abuse in educational institutions has created a serious ultimatum to the lives of students.

The number of addicts is on the rise at the rate of 40, 000 per year making Pakistan one of the most affected countries in the world. The most disappointing fact is that many heroin addicts are below the age of 22.

Increasing the use of drugs in educational institutions is a serious threat to the whole state (Pakistan) as its future is in the wrong hands.

Moreover, smuggling is causing a serious threat to the already crippling economic situation of Pakistan. Goods worth billions of rupees are sold in the black market and no one is there to ask.

FBR is responsible for the overall collection of taxes in Pakistan. Whether it is direct or indirect, it all goes to this specific department.

There are less than 1.7 million tax filers in the country having a population of 210 million.

The thing is; we have to keep in mind that only one and a half a million filers cannot bear the stress and pressure on them.

It is impossible to expect filers to be the contributors to the development of the country.

Unfortunately, if a filer is doing a business especially in garments, he /she has to give tax on everything.

On the other hand, non-filers hide their income in millions easily. FBR needs to change its passive policies towards filers and should give them relief.

On the other hand, strict policies should be made and more and more people should be added to the tax net as soon as possible to make the better survival of Pakistan.

This is the bad luck of our country, that most of the politicians and people at higher authorities get involved in corruption very easily.

When someone gives them the idea that how much they can earn through corruption, they eventually agree on that plan.

Instead of providing facilities to people, both (leaders and officers) are looting the country as much as they can.

They are saving money that will be enough even for their 3 generations. May it be FBR, Custom, police; everybody is indulging in corruption for a very long time.

This is the reason, billions of dollars of the budget that has to be spent on education, and construction goes into the pocket of the elite and the children of the poor are deprived of 2 times of food.

According to existing circumstances of the country where corona infection has closed and damaged the business activities throughout the country, smuggling goods are degrading the value of local products and local industries are being damaged as well.

In this regard, the Federal Board of Revenue (FBR) Customs chief (Zulfiqar Ali Chaudhry) has said that they are preparing such practice to search and finish the smuggling godowns (Stores).

This action will help FBR to collect such a huge collection which will help the country to get prosperous. But it is still being waited for when they are going to take a start to implement this practice.

If it really comes into reality, it can be better for Pakistani industries and enhancing the value of tax collection.

Otherwise, it will be a routine of the customs and intelligence department to get collect their special (EIDI).

The prime minister of Pakistan (Mr. Imran Khan) is very much interested to see the real prosperity of the country.

Regarding this prime objective, he must give tasks to FBR to collect taxes and enhancing

g the taxpayers’ numbers.

IMF policies may be in the favor of the Pakistani public for a short period of time, but we have to pay interest for a very long time for them.

Although Government’s tenure will come to an end after 5 years but they will not feel any regret. It is in need of the hour that FBR should run a campaign to increase the number of taxpayers for the real prosperity of the country.

—The Writer is a Senior Social Analyst & Chairman Pakistan Columnist Council
[email protected]

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