August 25, 2006	Friday	Rajab 29, 1427

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PESHAWAR, Aug 24: The Customs Collectorate has found that a huge quantity of locally manufactured vegetable ghee is exported to Afghanistan which finds its way back to Pakistan, thereby causing huge financial losses to the national exchequer on account of export rebate and sales tax refund.

Official sources say that during the financial year 2005-06 the federal government paid Rs1,610 million rebate against export of 1,66,544 metric tons of vegetable ghee to Afghanistan and will refund Rs890 million under the head of sales tax.

Approximately, 25 per cent of the vegetable ghee exported to the land-locked Afghanistan is smuggled back to local markets, say the sources.

The federal government pays Rs 9,681 rebate and refunds Rs5,382 sale tax on export of one metric ton vegetable ghee to Afghanistan.

On average local manufacturers get about Rs75 profit on a five kilogram tin of ghee, says an official.

However a huge quantity of the exported ghee is smuggled back to Pakistan via Federally Administered Tribal Areas, particularly Khyber, Bajaur and Mahmand agencies.

According to the Customs Collectorate, its Peshawar office has intimated the chairman Central Board of Revenue (CBR) about smuggling of locally-manufactured ghee and other products from Afghanistan.

It suggested downward revision of rebate and sales tax refund rate on exports to Afghanistan.

The customs officials stationed at various check-posts along the Pakistan-Afghanistan border, sources say, have no legal powers or authority to check smuggling of ghee and other items from across the border.

Political administration in tribal regions and personnel of the Frontier Corps posted along the trade routes and at checkpoints are also unable to eliminate the illegal trade, sources added.