President, Karachi Chamber of Commerce and Industry (KCCI) Abdul Majid Haji Mohammad on Friday said that imposition of Value Added Tax (VAT) will compound the miseries of manufacturing sector which already has a load of taxes on it. He also said that the manufacturing sector is up against sharply escalating power and gas tariffs, besides other issues of social security and old age benefit, etc.
In a communication to Member Customs Federal Board of Revenue (FBR) Munir Qureshi, Abdul Majid pointed out that presently General Sales Tax (GST) is deductible on more than 95 percent items and the imposition of VAT will further aggravate the situation. He noted that higher rate of tax leads to tax evasion and corruption and catalyses smuggling.
President KCCI emphasised the need of simplifying Customs rules and regulations, their procedures and implementations. He also said that the rules and regulations, their procedures and implementation are complicated. The importers and exporters face collective and individual problems in procedures of Customs clearance, he elaborated.
Stressing further he said that the business sector expects Customs service to response to their needs, simplification procedures, efficient processing of shipments, predictable sets of rules and regulations. Business community also expects them to help them achieve "just-in-time" deliveries to avoid stocks piling and prolonged warehousing.
President KCCI pointed out that Customs has traditionally been responsible for implementing a wide range of border management policies. Role of the service has changed significantly as a result of evolutionary factors, including the increase in globalisation of trade, the World Trade Organisation, World Customs Organisation and other international bodies are responding through the development of global standards that recognise the changing nature of border management, he said. The resultant shift in government policies and the way in which these policies are administered have brought us to a point where it is no longer possible to clearly define the role of this service, he added.
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