ISLAMABAD: The Federal Board of Revenue (FBR) has suffered a huge revenue loss on account of restrictions on border trade and the closure of border points along the Pakistan-Iran border.
Information received from these areas revealed that Rakhshan and Makran Border Trade Alliance had called for a complete shutdown in towns such as Washuk, Panjgur, Nokundi, and other border areas to protest the three-day weekly halt in border trade and the restrictions on oil transportation.
According to alliance officials, the residents of these areas rely entirely on border trade for their livelihood, as opportunities for agriculture and industry are limited. The closure of the trade points has deprived thousands of families who depend on Iranian oil and other border trade for their income.
In Nokundi, the closure of the Pakistan-Iran border has disrupted the transport of essential goods, putting additional strain on both traders and residents. Trade union leaders have also lamented that security checkpoints have exacerbated their difficulties, causing delays and financial losses.
In Panjgur, trade leaders condemned the border restrictions, stressing that generations of livelihoods and the local economy are dependent on this cross-border trade.
During the last meeting of the Senate’s Standing Committee on Finance, chaired by Saleem Mandviwala, the committee reviewed the matter of the Iranian authorities collecting a 10% tax on Pakistani commercial vehicles.
Chairman, Federal Board of Revenue (FBR) has recommended imposing a tax on Iranian vehicles, suggesting that the Ministry of Foreign Affairs engage with the Iranian Ambassador to resolve the issue.
Senator Manzoor Ahmed Kakar raised concerns that Iran imposes a 10% levy on Pakistani commercial vehicles at the border, and additionally charges $1 per kilometre for every kilometre travelled within Iran.
The FBR Chairman pointed out that Iranian commercial vehicles entering Pakistan are not taxed, and stated that Iran should either stop charging the levy on Pakistani traders, or Pakistan should also impose a similar tax on Iranian vehicles. He emphasised the key role of the Ministry of Commerce in this matter.
Copyright Business Recorder, 2024
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