KARACHI, May 10: Long outstanding issues confronting industry and export trade for the last many years are expected to come up before the advisory council of ministry of commerce when it meets under the chairmanship of Abdul Razak Dawood, Minister for Commerce, in Islamabad on Saturday.
The council meeting, called for soliciting suggestions ahead of framing of trade policy and budget, is expected to witness unanimity in views of business leaders about ‘negative’ performance of the CBR that creates liquidity problem for industrial and export activities by holding back their huge refunds.
As such no new suggestion could be placed before the council as long outstanding issues related to sales tax, refunds, rebate and mark-up are still there to confront business community, chairman, FPCCI committee on export, Liaquat Jangda, told Dawn.
But still strong demand would be raised for streamlining the sales tax refunds procedure as well as ensuring quick payment of rebates to maintain the cash flow for industrial and export activities to maintain the level of exports, he maintained.
“The most disturbing thing for the business community is that a lot many deliberations and setting up of committees do take place at the highest level, but at the implementing stages the things fizzle out,” he observed.
For promoting exports and making them competitive a demand would be raised for lower of mark-up because the present rate of eight per cent, he said, was too high when compared to regional countries rate of five per cent. Demand regarding refund of huge amount stuck up in payment of War Risk Surcharge would also be raised, he added.
It would also be strongly suggested that five per cent of fob exports should be allowed to facilitate exporter to use these funds for import of machinery and spare parts used in production of export goods.
Pakistan Bedwear Exporters’ Association (PBEA) chairman Shabbir Ahmed said his association would seek for the suspension of Export Development Surcharge (EDS) being collected at the rate of 0.25 per cent.
He said deduction of EDS from exporters was not only making cost of production higher but also made exports uncompetitive.
Shabbir Ahmed was highly critical about the plans for setting up expo centres at Lahore and Faisalabad and said, “when EPB is unable to run the Karachi’s expo centre then there is no need for wasting funds on establishing more such centres.”
Iftikhar Ghani Vohra, senior-vice president, Karachi Chamber of Commerce and Industry, said a demand would be raised for allowing more imports from India. He said in this age political hostility should not be allowed to overtake economic relations.
The KCCI, he said, would also seek lifting of ban on import of reconditioned and used cars in the Trade Policy 2002-03 as this would provide consumers more option and choice.
Iftikhar Vohra, who is going to represent KCCI at the council’s 53th meeting, said he would demand for long-term trade policy because for establishing any business, time period was a crucial factor that could not be ignored.
For restoring investors’ confidence, he suggested, trade and investment policies should be made for a period of at least five years as long-term policies will attract local as well as overseas investors.
“I will also raise demand for taking such measures that could help curb smuggling which is eating away a large amount of foreign exchange of the country. Most of smuggling is going on through Afghanistan,” he added.
In order to solve this problem and at the same time abiding the international treaty of providing a safe way to land-locked country, Iftikhar Vohra said a demand would be raised at the meeting that all imports made by Afghans should be subject to normal customs duty levied under prevailing tariff rates and the goods should be released only on the payment of duty by the importer.