President Northern Areas Chamber of Commerce and Industry (NACCI), Hafiz Hafeezur Rehman has said that business community was ready to pay more taxes provided importers were charged once on their consignment from China at Sost border post.
While talking to Business Recorder, Hafeezur Rehman, who is also a member and advisor on Education and Revenue of Northern Areas Legislative Council (NALC), said that Northern Areas' importers were illegally charged Rs 30 thousand per truck at Mansehra customs check post despite paying full duties at the Pak-china border.
The Central Board of Revenue (CBR) claim that customs check posts have been abolished proves to be wrong as a customs superintendent along with 2-3 inspectors are still illegally collecting "Bhatta" in the name of customs duty on all the consignments from China.
Unfortunately, the custom authorities are reluctant to take any action against this illegal check post due to unknown reasons.
He was of the opinion that importers from Northern Areas were ready to pay full taxes at the Pak-China border only on the condition that they would not have to pay any other duty at other check posts.
Clarifying the misperception regarding the exemption of the Northern Areas from the import duties, Hefeezur Rehman said that since 1999, they were not enjoying any kind of exemption from sales tax and customs duty.
The NACCI president said that Rs 9.6 million was collected from Sost border last year and this year they have collected Rs 7 million so far and expect more than Rs 10 million by the end of the year.
He demanded of the government to make NAs free-trade zone as the area lacks the required trade and industrial infrastructure adding that the area has also been denied political and constitutional rights.
About the economic activities, Hafeezur Rehman said that trade and service sectors are only sources of earning in the area.
However, he said that due to lack of job opportunities, service sector did not play a significant role.
To boost economic activities in the area, NAs administration has issued about four thousand border passes to local traders, which has reduced poverty and unemployment to a great extent.
He also pointed out that as there was no electricity, small industries could not be run in the area, so the entire population depends upon the trade sector.
About the new export processing zone, the President NACCI said that 1000 kanals of land has been allocated for the purpose and it would be completed by June 2005, with an estimated cost of Rs 50 million.
Hafeezur Rehman said that the zone initially would focus on agriculture and mining products as well as a display centre would be set up for local gems.
To a question regarding the local gems, he said that the quality of the gems in NAs is higher than the gems found in the South Africa and added that it could be a source of huge foreign exchange earning.
To an another query regarding the present condition of Karakoram Highway (KKH) and its impact on trade, he said that it needed more repair and security arrangement for risk free trade and added that for repair work China has given $0.6 million and shown interest to fund the construction of 14 bridges, which would reduce travel distance about by 250 kilometres.