ISLAMABAD: The government has reduced the commission of the Trading Corporation of Pakistan (TCP) by more than half from two percent to 0.75 percent on import of sugar and wheat to lessen the cost borne by the federal government on import of these two commodities.
An official said that the ECC of the Cabinet was requested to approve reduction of commission charges of the TCP to 0.75 percent of the C&F (cost and freight) value of imported wheat and sugar connected to the current import allowed.
The Ministry of Industries also informed the ECC that an inter-ministerial meeting after detailed deliberation finalised the proposals that: (i) TCP will negotiate reduction of various service charges associated with import with service providers; (a) stevedoring @1250MT for handling; (b) clearing forwarding and other charges; (ii) both food department, Punjab and TCP were asked to finalise lifting/transportation mechanism and sign an MoU agreement as soon as possible; (iii) TCP commission two percent of C&F would be reduced to 0.75 percent by the Ministry of Commerce through the ECC; (iv) Ministry of Maritime Affairs would be requested to reduce port handling charges; (v) Ministry of Science and Technology would be requested to reduce the PSQCA charges; (v) Government of Sindh would again be requested to remove taxes on these imports; (a) 1.5 percent Cess; (b) sales tax on wharfage service.
The ECC meeting was also referred to previous decision, and stated as the TCP is not provided funds by the federal government for meeting its expenditure, it charges commission the commodities imported by it on the direction of the federal government. In November 2004 letter of the Ministry of Food, Agriculture and Livestock shows that the prime minister has approved that the TCP would charge two percent commission of the landed price of urea and in line with import and in line with import of wheat to be paid by the government.
Moreover, the ECC of the cabinet in its decision of April 2005 had allowed the TCP to charge a commission of two percent for handling import of fertiliser.
The meeting was informed that in view of the above referred decisions, the TCP is also charging a commission of two percent on import of wheat and sugar.
In an inter-ministerial meeting chaired by the Minister for Industries and Production, it was decided that there was a need to reduce the commission charges to 0.75 percent as it would help on import of two commodities.
The minister stated that since all the relevant ministries and divisions were part of the inter-ministerial meeting, their views have been made part of the recommendations.
Copyright Business Recorder, 2020
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