Wheat import value: Sindh govt has not yet waived excise and taxation charges

KARACHI: The wheat importers are in trouble as the first wheat consignment has reached Pakistan, but the Sindh government has not yet announced waiver of excise and taxation charges on the import value of wheat.

The federal government has already allowed duty-free import of some one million metric tons of wheat by the private sector for an unlimited period to avoid shortage of the commodity in the country.

All taxes and duties, including the Regulatory Duty (60 percent), the customs duty (11 percent), the sales tax (17 percent) and the withholding tax (6 percent), were abolished by the federal government to facilitate the wheat importers.

In addition, the Ministry of National Food Security and Research (MNFSR) had assured the importers to trade in wheat for countering wheat shortage in the country.

However, the Sindh government has not yet abolished some 1.25 percent excise and taxation (E&T) charges on the import of wheat.

The Economic Coordination Committee (ECC) of the cabinet in its meeting held in the mid of July had decided that the Sindh government should be approached for waiver of the E&T charges to ensure cheaper commodity import in the country.

Accordingly, the MNFSR approached the Sindh government for waiver of excise and tax on import of wheat, and the matter was discussed at the Sindh cabinet meeting on July 22.

During the Sindh cabinet meeting it was decided that the Ministry of Food, Sindh, would send a summary to the chief minister for waiver of tax on the import of wheat.

Sources said that the summary on removal of excise and taxation charges had been with the chief minister for a formal approval for the last one month, but the Sindh government had not yet announced the waiver of E&T charges on the import of wheat.

The first shipment of some 60,000 metric tons of wheat arrived in the country on Wednesday, but the importers are still waiting for a decision on the E&T charges imposed by the Sindh government.

Sources said that a meeting of the chief secretary of Sindh with the wheat importers and association of flour mills had been scheduled to take place on Thursday, but it could not be held due to the rain in the city.

They said that the cost of the imported wheat would increase by some Rs50 to Rs60 per 100-kg bag if the Sindh government did not waive the E&T charges.

The importers have also urged Chief Minister Syed Murad Ali Shah to immediately approve the summary and announce the abolishment of the E&T charges on the imported wheat so that the importers can import more wheat for local consumption.

They said that import of wheat would not be viable if the E&T charges were not abolished by the Sindh government.

Meanwhile, the Sindh government on Thursday formed teams of Sindh Food Department to monitor unloading of the imported wheat and to facilitate its dispatch to the respective destinations across the country.

The official in charge of the food department would also obtain details of the arrived shipments and loading trucks.

The private sector has booked some nine ships for import of some 0.6 million metric tons of wheat.

The federal government has also imposed a ban on export of wheat, wheat flour and wheat products, asking the provinces to remove all restrictions to ensure free movement of wheat and wheat flour across the country.

Copyright Business Recorder, 2020