The government has decided to impose transit fee in US dollars on containers destined for Afghanistan, as presently the Federal Board of Revenue is not collecting any fee or charges from Afghan commercial cargoes or Nato containers.
Federal Board of Revenue Member Customs Mumtaz Haider Rizvi informed the Senate Standing Committee on Finance on Friday that at present the FBR was not collecting any money in the form of taxes or fees on the commercial Afghan transit containers under the transit trade agreement.
Similarly, we are also not getting any amount on transit of Nato containers for international forces operating in Afghanistan. Thus, no amount has been collected on allowing transit to Afghan containers via land route to Afghanistan.
When Senator Talha Mahmood inquired about damages caused to the roads and bridges due to constant movement of Afghan and Nato/Isaf containers during transit, FBR Member Customs observed that the FBR has proposed an amendment in the Customs Act, 1969 stating that grant of transit facility has increased customs facilitation and allied operations manifold.
In order to provide self-sustaining infrastructure and services at customs stations and en-route, an enabling provision for collection of transit fee has been introduced through Finance Bill 2011 with inclusion of new section 129A in the Customs Act, 1969. He stated that when the proposal would be approved along with the Finance Bill from National Assembly, Pakistan would decide the rate of transit fee and its collection mechanism.
Taking into account the viability of the proposal, the Senate Standing Committee endorsed the FBR proposal to levy transit fee on transit containers. The FBR officials informed the committee that volume of containers have increased manifold in the recent years and to manage this volume use of Pakistan''s infrastructure especially computerised services, scanners, manpower and its equipment has increased.
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