The penalty amount, totaling Rs400 million, has been waived for the clearance of goods held up in bonded warehouses.
In a significant move aimed at facilitating the business community and boosting economic activity, the government has announced a waiver of penalties amounting to Rs400 million for the release of goods stuck in customs bonded warehouses. Finance Minister Asad Umar made this announcement during his speech while presenting the Finance Supplementary (Second Amendment) Bill, 2019, on January 23.
According to Umar, a substantial volume of goods consignments, including crucial industrial inputs, with a total worth of Rs5 billion, had been held up in customs warehouses due to non-payment of surcharges for overstayed periods. Recognizing the challenges faced by the business community, particularly in terms of liquidity, the finance minister highlighted the difficulty in meeting surcharge payments to clear these goods.
In response to these challenges, the government has taken the proactive step of waiving the Rs400 million penalty amount, offering relief to businesses struggling with liquidity constraints. This decision is expected to have a positive impact on economic activity, facilitating the release of stuck industrial inputs and, in turn, contributing to an increase in exports.
Finance Minister Umar emphasized the significance of this penalty waiver, stating that it aligns with the government’s broader strategy to promote economic growth and alleviate financial burdens on businesses. The move is particularly aimed at supporting the business community, allowing them to overcome liquidity issues and play a more active role in driving economic recovery.
The penalty waiver is anticipated to create a more conducive environment for businesses to clear their goods from customs bonded warehouses, ultimately stimulating economic activity across various sectors. The release of industrial inputs, in particular, is crucial for the resumption of production processes and meeting market demands.
While addressing the National Assembly, Finance Minister Umar underlined the government’s commitment to fostering a business-friendly environment. The waiver is seen as a pragmatic measure to address immediate challenges faced by businesses and promote a more favorable economic climate.
This initiative is in line with the government’s broader efforts to streamline processes and reduce financial barriers for businesses. By facilitating the release of stuck goods, the government aims to not only support the business community but also catalyze economic growth, enhance export capabilities, and contribute to the overall economic well-being of the country.
As the Finance Supplementary (Second Amendment) Bill progresses, stakeholders and business entities are encouraged to stay informed about the details and implications of this penalty waiver. The government’s commitment to addressing challenges faced by businesses reflects a proactive approach to economic governance, demonstrating responsiveness to the needs of the business community in a rapidly evolving economic landscape.
very good gesture showed by govt.