All Pakistan Customs Agents Association (APCCA) Sunday stressed upon federal/ provincial authorities to remove double taxation on the clearance of imported consignments from ports in Punjab during the coming budget (2016-17).
According to a statement of Arshad Jamal, Vice Chairman ( Central) & Spokesman, APCCA expressed his grave concern over the levy of 0.9% duty on import consignments by the Punjab government being un-constitution and illegal when the forth coming Federal Budget 2016-2017 is about to announce next week. He stressed the negative impact of this unilateral decision of the Punjab government, which would be tantamount to annihilating the import business at dry ports which would have economically devastating results and force businesses to move out of Punjab.
He said that Punjab government has imposed Punjab Infrastructure Development Cess (PIDC) on goods imported and cleared on dry ports of Punjab on the pretext to provide resources for maintenance, development and improvement of infrastructure required to cater for load of goods traffic and to deal with other purpose but ground realities are quite different. The CESS is discriminatory and will further burden up existing taxpayer instead of broadening tax net. He said that after imposition of Punjab Infrastructure Development Cess, businessmen would start clearing their consignment in other provinces to avoid this tax which would not only hurt businesses of clearing agents and transportation companies that provide employment to thousands but would also cause huge damage to the provincial kitty.
He said the industrial sector was already in a deep crisis and this new levy would further aggravate the situation. He demanded the government withdraw from the decision immediately as Sindh government is collecting this cess at the rate of 1.05%. The cess a kind of octroi tax that was previously merged in the national budget and is levied in addition to the taxes already received in the shape of toll tax, octroi tax and Sindh government tax. The tax was also being collected from the cargo transported to upcountry through train, which should be exempted because no infrastructure had bee used in this context. Due to the levy of this tax, revenue collection as on May 26, 2016 at the Lahore Dry Port decreased 70% as reported by APCAA sources.
Arshad Jamal viewed that the situation was similar at other dry ports and if it continued revenue collection at other up country dry ports would become zero, bringing the activities to a grinding halt. He asked top leadership of F.P.C.CI to call emergent meeting and expressed his reservations as customs agents & bonded carriers against the double taxation of cess, which is against the constitution of Pakistan. He reiterated that the existing capacity at the Port / different terminals in Karachi is not sufficient enough to cater the clearance business from all over the Pakistan hence the government should keep on board all the stakeholders including F.P.C.CI, chambers and all trade associations on board before taking any abrupt decision. This is an indirect tax as it will be charged on movement of goods including raw materials cleared on dry ports of Punjab and will ultimately prove to be an impediment to economic growth of the province. He said that trade and industry would be hit by the move and it would result in increased input cost. He said that businessmen are already coping with a number of internal and external challenges while Punjab Infrastructure Development Cess would further add to their miseries. He said that Punjab Infrastructure Development Cess would also give an impression that business atmosphere in Punjab is not favourable.
The APCAA spokesman criticised the policies of Punjab Government which is against the manifesto of Pakistan Muslim League (N) who have claimed to abolished TP Octroi Tax but instead this act will ruin the Punjab government efforts aimed at economic revival of the province. He said that at present when businessmen of Punjab are trying to play their best for progress and prosperity of the country, they need a helping hand from the Punjab government. He said that there is a dire need to avoid new levies like Punjab Infrastructure Development Cess as they are not in a position to bear more burdens.
Arshad Jamal appealed Finance Minister Ishaq Dar and Chief Minister to intervene in the matter personally and withdraw Punjab Infrastructure Development Cess act to in the larger interest of the business community.