The Central Board of Revenue (CBR) has asked Sindh government to waive the 'infrastructure cess' on Afghan Transit Trade (ATT) goods for smooth clearance of the consignments blocked at Karachi Port. After a daylong meeting with the Afghan delegation here on Wednesday, Revenue Board Chairman Abdullah Yusuf told Business Recorder that CBR has taken up the issue of immediate withdrawal of this levy with the Excise and Taxation Department of Sindh.
When asked whether the issue of 'infrastructure cess' would be taken up in the meeting of Economic Co-ordination Committee (ECC) of the Cabinet, he said that it is not a federal matter and the issue would be resolved at the level of provincial authorities.
The CBR has asked Sindh government to resolve the issue. If it is necessary, Sindh may take up the issue with the provincial cabinet for the resolution of the issue.
Yusuf said that CBR has written a letter to Sindh government in this regard.
Meanwhile, it is learnt that the Afghan delegation has expressed concern over this levy and opined that the 'cess' could not be levied on transit goods under Article IV of Afghan Transit Trade Agreement.
During the meeting, the Afghan government placed the following demands before Pakistan government:
1. Afghan delegation has demanded of Pakistan to decrease railway charges for Afghan transit goods as Pakistan Railways is not only causing delay, but is also overcharging the Afghan importers.
The railways should take measures for speeding up delivery of the Afghan consignments.
2. Afghanistan has requested Pakistani authorities to waive 5 percent custom duty levied on the import of fresh fruit from Afghanistan to Pakistan. The CBR has rejected this proposal on the ground that Pakistan exporters have to pay 10 percent custom duty on the export of fruit to Afghanistan.
Moreover, Pakistan has levied minimum slab of import duty on the fruit from Afghanistan as compared to the rate of duty levied by the Afghanistan.
3. Afghanistan has placed another demand for signing customs protocol with Pakistan. Afghanistan has already inked these agreements with Iran and Turkmenistan.
4. Afghan delegation suggested certain measures for smooth working of transit trade.
5. The delegation asked CBR officials to intervene in the matter of 'infrastructure cess' levied on transit goods.
6. The delegation also demanded waiver of demurrage caused due to delay in the clearance of Afghan transit goods as around 3,000 uncleared containers are awaiting clearance.
The Afghan delegation comprises transit importers, Afghan Director General Transit Trade, two Afghan deputy ministers, one foreign office representative from Afghanistan and officials from the Afghan embassy.
Pakistan side was represented by the CBR chairman, Member Customs Ramzan Bhatti and representatives of Ministry of Commerce, Railways and provincial government represented Pakistan at the meeting.