Fishermen demand sizeable cut in all levies

28 Mar, 2009

The Karachi bound fishermen have criticised the government for imposing heavy taxes on them by its different agencies, saying that these levies are out of proportion as compared to their income of the whole year. The seafarers demand of the government to revisit its tax structure and suggested a sizeable cut in all levies.
Unlike other parts of the country where fishermen community does not have to pay such levies to any other agency, the government has taxed only the Karachis fishermen, which they termed a discriminatory policy. Running from pillar to post to negotiate the taxation policy, they said that none of the government officials or agency found willing to review these impositions, which have put additional financial burdens on them.
"These taxes are received by Karachi Fish Harbour Authority (KFHA), Karachi Port Trust (KPT), Income Tax Collectorate. Besides, Fishermen Cooperative Society (FCS) extracts huge commission on catch from fishermen under different heads," they added.
Income Tax Collectorate receive Rs 4,000 per boat annually, KPTs channel passage and berth tax stands at from Rs 3,000 to Rs 17,000 per boat annually, KFHAs takes Rs 1,100 per boat tax under fishing permit besides Rs 200 per boat captain and Rs 50 per crew annually.
While the fishermen have to pay three percent commission on the total catch landing to FCS, 3.25 percent to auctioneer inside the halls, three percent to the middlemen and two percent to the processing factory, which cumulatively become 11.25 percent commission (tax) on a single landing, they pointed out. But, for the blue-eyed fishermen of the FCS officials there is only Rs 200 per boat catch-landing commission, whereas the other fishermen pay Rs 11,000 for the same volume of catch, they maintained.
Asif Bhatti, President of Bona Fide Fishermen and Boat Owners Welfare Association told Business Recorder on Friday that there are no incentives from the government to the Karachi bound fishermen despite being the income generators to the national exchequer.
He said that the fisheries sector falls under agriculture sector and the government has given several incentives to the farmers without taxing them, while the Karachis fishermen have been burdened with numerous taxes without any incentives.
Similarly, the government is giving incentives including issuance of licences free of cost, to the inland fish farmers from whom there is no financial gain to the country, while the local fishermen are forced to pay regardless of their boats are functional or not, Bhatti added.
He said that KPTs berth tax is illogical, as no fisherman uses its berths, cranes or other facilities, except making of a passage through its navigational channel to enter Karachi Fish Harbour for which fishermen are taxed so high with Rs 3,000 to Rs 17,000 annually.
He dubbed the KFHA fishing permit and other such taxes as undue, saying that the authority has never paid any attention to the problems of local fishermen from whom it generates revenue, adding that there should be some subsidies in return of taxes.
He demanded of the government to willingly negotiate these taxes with downward review to benefit the local fishermen. He said that the government should provide them with schools, healthcare facilities and electricity, besides the subsidised diesel so that they could run their boats. He cited the examples of other neighbouring countries including India and Iran where fishermen pay single tax to the government while in return they receive subsidised fuel for boats and other financial gains including loans.

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