Acting President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Mohammed Mansha Churra has urged the government to review Afghanistan Pakistan Transit Trade Agreement (APTTA) and include a condition that Afghan imports must pay duty at port of entry in Pakistan and the same be reimburse at exit customs post at Afghan border.
In an informal chat, he said this agreement would have negative impact on Pakistan's economy as most of goods imported for Kabul illegally sneak into markets denting our local industry. No "mechanism "has so far been evolved to control smuggling from Afghanistan and the agreement would result into increasing this unending menace.
He said Afghan Transit Trade Agreement (ATTA) has been extremely abused in the past by the dishonest elements to import products above their real consumption in Afghanistan meant only to push back the goods into Pakistan. The majority of the imported products booked for Afghanistan, never reach Afghanistan after being rerouted in the borders areas of the KP bordering with the country.
Due to ATTA, local manufacturers although they are legal importers are undermined. This, in turn, also deprives the government of substantial loss in terms of investment, corporate taxes and duties. He pleaded that a mechanism should be developed to monitor cargo movement and record its delivery at exit customs post at Afghan boarder so that the goods should not enter in Pakistani markets.
Referring to Reformed General Sales Tax (RGST), he expressed that neither government consulting FPCCI on the issue nor providing details of the RGST. Regarding flood tax, the acting president said that this issue was also never consulted with FPCCI.
Expressing his opinion in flood tax, he said we will reject this kind of tax if it is going to be imposed in Sindh only. However, if the tax is imposed across the country it may be considered. Referring to targeted killing, he noted with concern that foreign investors are slowly pulling their investment out of the country and local investors making no new investment due to prevailing law and order condition in the country.
He said that the government must take appropriate measures to control law and order situation, which is prerequisite to attract foreign and local investors. He expressed fear of massive unemployment in the country if failed to establish new industrial units.
The acting president emphasised the need of reducing power and gas tariffs, and adopting policy which help quick start of economic activities. As regards of EU duty waver of 75 items for three years, he appreciated the EU move and said that it would help Pakistan to improve its exports. He demanded that the list of items be increased and three year time to extended further.
Comments
Comments are closed.