RECORDER REPORT

LAHORE: The All Pakistan Dry Ports Association (APDPA) has urged to withdraw 0.9 percent infrastructure cess in Punjab, as already the dry ports business has registered a drop of 90 percent due to 1.1 percent cess by the Sindh government. The demand was made in a meeting of the Association held at a local hotel with Mukhtar Sheikh in the chair. The members also elected Muhammad Hanif Khan as its next Chairman.

Holding a press conference at the Lahore Press Club, the Association leadership pointed out the dual tax has invited troubles for exporters, commercial importers and clearing/forwarding agents.

They said clearance of imported consignments has been shifted to Karachi port because of 0.9 percent cess, resultantly bringing the revenue down in the province. Further, they added, a large number of clearing/forwarding agents have become unemployed due to the fact.

It was further mentioned that the exporters in Punjab province are facing an ordeal situation as an increase in production cost due to import from Karachi has put them behind in the international competition.

They said the Punjab and Sindh governments have imposed 16 percent and 13 percent sales tax on heavy vehicles respectively. Only the transporters operating on the ports are bound to pay this tax while the individuals are exempted from the same. This discrimination has added fuel to the fire and business relating to the dry ports has come to halt.

They said the dry ports are non-profitable facilities and both the importers and exporters are provided with the service against negligible charges. Introduction of innovative taxes amidst rising cost of doing business was proving last nail in the business of dry ports, they added.

The newly appointed Chairman of the Association urged the chief executives of Punjab and Sindh provinces to exempt dry ports from the taxes with immediate effect.

While listing down other problems of clearing/ forwarding agents, he said, dual and ruthless checking of export cargo by the Anti Narcotics Force causing financial loss besides a delay in supplies.

Further, he said, an absence of LCL module in the WEBOC system at the upcountry dry ports adding troubles to the exporters. They are avoiding dry ports for DTRE and temporary imports, he added.

He said a ban on the facility of port hopping in the WEBOC system was causing delay in transmission of exports besides multiplying the import expenditures. Error in the Customs software cannot be corrected and a minor glitch leads to restart the clearing process that adds to the cost and wastage of time.

He urged the federal minister for Railways for supply of freight trains for dry ports on priority and allocated quota of wagons permanently.

The Association also expressed concern over the commercialization fee at the Multan Dry Port and urged the Chief Minister Punjab Shahbaz Sharif for early revocation of the fee in order to save the port from a permanent closure.