ISLAMABAD, Sept 3: The Afghan importers have asked the Pakistani government to impress upon the Sindh government in removing the infrastructure cess on the transit goods. The levy of the cess results in cost increase.

The Pakistan Afghan Transit Trade Clearing Agents Group in a letter to the commerce ministry had said that according to the Afghan Transit Trade (ATT) agreement, any kind of cess could not be levied on transit goods.

The Afghan importers have stopped the clearance of such goods from September 1, 2004 and would continue this till a final decision was made between the two governments. The Commerce Secretary Tasneem Noorani when contacted told Dawn that the ministry has already taken up the issue with the Sindh government for consideration.

He added that earlier, the Sindh government had levied this infrastructure cess on the US goods also, but on the intervention of the commerce ministry, the levy was suspended for a short time.

"We have urged them to review the decision in a way which does not affect the goods", he said. The commerce minister would soon take up the issue with the Sindh Chief Minister for an early resolution.

The government had abolished local taxes, and in compensation announced an increase in the share of provinces in federal taxes. "The revival of old practice is not a good indicator", he said. Importers have already asked the Afghan government to resolve the matter.

Director office of the Excise and Taxation, Karachi, through a letter, asked the Afghan importers to obtain a computer generated challan from the Pakistan Revenue Automation Limited (PRAL) and deposit it into the National Bank of Pakistan, Customs House, Karachi.

The letter further said that in future before the removal of goods from the port, the infrastructure cess must be paid to avoid other action admissible under the rules.

It was feared that in case the cess was not withdrawn imports under the ATT would decline during the year 2004-05, which would subsequently affect the stakeholders involved in the businesses.