Regulatory duty must be rationalized to curb smuggling: Karachi Chamber

KARACHI: Karachi Chamber of Commerce and Industry (KCCI) has urged tax authorities to rationalize the regulatory duty on imported goods in order to curb smuggling.

In its proposals for budget 2020/2021, the KCCI said that the regulatory duty was imposed in last fiscal year to rectify the balance of payment crisis.

To some extent the regulatory duty on imported food items supported the food items produced locally but most of those items which are not produced locally due to climate and resources, have to be imported.

High rates of RD on imported food items has sharply increased cost of import and consequently these items have been pushed into smuggling regime.

“Rampant smuggling of these items is taking place with impunity making it impossible to import through documented channels.”

The KCCI  Major loss of revenue to exchequer because smuggling mafia makes everything available without paying any taxes and duties.

Imposition of regulatory duty is the main cause that such commonly used items like dry-fruits, nutrition, honey, grains, pulses and spices are being imported through illegal channels which is causing significant damage to the economy of the country.

The KCCI suggested that regulatory duties should be rationalized and in some cases withdrawn to curtail smuggling and help to increase in revenues, documentation of trade and support the exports as many of the imported items are industrial raw materials which are re-exported to generate foreign exchange for Pakistan.

Leave a Reply

You have to agree to the comment policy.