KARACHI: Abdullah Zaki, President Karachi Chamber of Commerce and Industry (KCCI), on Tuesday urged the government to cut duties and taxes on imported goods particularly the smuggling prone items.

In a statement, the KCCI president claimed that lower duties and taxes would discourage smuggling and misuse of Afghan Transit Trade (ATT) facility.

“Smuggling and misuse of ATT have undermined the local industry, discouraged legal imports and reduced revenues collected from duties and levies at the import stage and taxes collected at the retail stage,” he said.

He further complained that business community demanded substantial reduction in duties/taxes at import stage but it was not addressed in the budget 2014-15. However, the decision makers reduced duties on some items and imposed an additional 5 per cent Regulatory Duty.

This Regulatory Duty, he added, was also applicable on items imported from countries that have signed free trade agreements with Pakistan, thus making imported goods more costly.
“Smuggled goods are neither required to pay any taxes and duty nor comply with complicated documentation procedure thus rendering the legal importers and local manufacturers uncompetitive,” KCCI chief said.

“Local markets are over flooded with smuggled goods thus eroding the market share of locally made products.”

Published in Dawn, July 2nd, 2014