Government urged to withdraw duty on edible oil raw materials

President Karachi Chamber of Commerce and Industry (KCCI) Mohammad Saeed Shaifq has urged the government to withdraw the amount of duty on the edible oil raw materials completely. In a communication to the government, he noted that edible oil prices for the common man have gone up totally out of the reach. He is now using the open unbranded types of edible oil that is causing untold misery and health issues.
He said that the government has to stop using every single commodity as an engine of revenue. This is a flawed approach to the whole custom duty structure. The government cannot make the common man steal because this will destroy the fabric of society. When the government increases the price of edible oil it directly takes away the amount from the take home salary and this results in more loss to the government as the inflation increases due to the effect of the increase in the basic basket of indices that is used to keep an eye on the inflation.
The government can plan the other available options of revenue increase but must not involve revenue generation in the edible sections particularly the ones that are indispensable.
The president said that it is not the business of the state to make a profit. It is supposed to serve the citizens by providing them better health and living conditions along with financial security. By promoting an affordable system of essential item exclusion from revenue generation list, the inflation will drastically come down and there may be more employment and better living standards than the government earning at the cost of its citizens. He further pointed out that facility of zero rating of sales tax and duty draw back of custom duties is not allowed on exports made through the land route from Export Processing Zone (EPZ) and manufacturing bond.
This illogical condition makes these export friendly schemes of EPZ & manufacturing bond ineffective. Surprisingly the goods of international security assistance force (ISAF) are allowed without this condition.
In order to boost the exports to Afghanistan and minimise the refund and duty drawback claims the no duty no refund-based scheme has to be encouraged. For this purpose the unnecessary regulation has to be removed from these schemes. In S.R.O 1021 Para 8(d) of October 8, 2007, issued by ministry of commerce, the facility of zero rating of sales tax and duty draw back of custom duties is not allowed on exports made through the land route from EPZ & manufacturing bond.
He suggests that all regular export to Afghanistan should be allowed without this conditionality. He said it is evident that what has been happening in the events of the container fiascos that have rocked the whole set up of the custom integrity palace is common knowledge now. The Pakistani businessmen who are corrupt should be punished no doubt but the ones who are an asset to the future of Pakistan should be protected and promoted. The above mentioned point is in that direction of a win situation. He said that custom valuation is the single most time wasting and irritant activity in all custom related debates.
The present scenario is extremely unfavourable for the importers. They are at the mercy and whim of the valuation. However there are methods available to deal with this issue but the time of the businessman is the most precious commodity and this is wasted in unnecessary events meetings and planning. The pace of the business suffers and the future strategies are also compromised. The relationships of the custom officials and the importers are at the lowest with both at loggerheads and proving that they are right and with the evidence provided at both ends the circumstances turn to the worse with each passing day.
He proposed the formation of a committee that comprises of the members of the KCCI and the relevant customs officials is the answer to this entire problem. It is indeed not the idea to trespass on the authority of the custom officials but to elaborate and substantiate the point of view of the importers. The budget makes provisions of several methods of revenue collection. A suitable increase in revenue can be achieved by the government if policies and issues are settled with the participation of the stake holders given the right kind of authority and presentation in the present set up by the brisk increase in trade with the business people having more trust in the system and with better volumes of business available.