First shipment of 108 tons betel-nuts arrives after 2 years

First consignment of betel-nuts arrived in Karachi after two years as importers fulfilled all conditions prescribed by the Central Board of revenue, thus helping the country to generate as much as Rs 2 billion in the current fiscal year.
Ashraf Tar Mohammad, chairman, Pakistan Commodity Traders Association, said that the two consignments of 54 tons each arrived from Thailand on Tuesday which would not only generate revenue for the government but would also create economic activity.
"We expect that the nearly 4,000 to 5,000 daily wagers and transporters would get additional wage. They were very happy following government decision as the arrival through legal channel would improve their earnings," Ashraf said.
Following this arrival importers have opened letters of credit of nearly 300 containers of betel-nuts from Thailand and Indonesia.
Ashraf said that the importers have fulfilled all conditions and have provided health certificate from the Ministry of Thailand saying that "the betel nuts are fit for consumption and could be exported".
The certificate has been received from the world's highly reputed company--France-based Bureau Vietra, Ashraf said.
Nisar Nayani, general secretary, Sweet Supari Packers Association, said "The arrival of betel nuts from legal channel has assured us that the quality would be of prime standard, because the goods arrived through Afghan Transit Trade and through grey channel were not fit for human consumption and lacked any quality standards."
He said that the government would generate additional revenue from sales tax because the packers of sweet supari would increase their sales after getting high quality betel nuts.
He said Bureau Vietra is highly reputed company and in Bangladesh all shipments of betel nuts are carried out under the umbrella of this company. Moreover, this Bureau is the hallmark for the betel nut industry as it verifies the standard, assure the supplier that it is fit for human consumption and the weight of the commodity.
The government's decision would curb the menace of smuggling and would bring healthy products in the country.
The PCTA chairman said recently it collected data from Indonesian government which showed that about 60,000 tons betel nuts were shipped to Pakistan, while about 30,000 tons had been exported to Iran and Afghanistan where the consumption is almost nil and all this commodity was smuggled to Pakistan.
According to these statistics, the government in the last two years witnessed drainage of Rs 4 billion in shape of revenue.
Despite reduction in import duty to 5 percent from 25 percent and reduction in withholding tax to 2 percent from 6 percent would discourage the smuggling regime. He said that the flow of betel nuts through illegal channels was eroding government revenue because before the ban nearly 35,000 tons betel nuts used to enter the country through official channel.