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| Shipping ministry opposes tax on port services |
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Saturday, June 20, 2009
By our correspondent
KARACHI: The Ports and Shipping ministry does not want a tax to be imposed at different stages of cargo handling when international trade from the country is already slowing down.
Ports and Shipping Minister Babar Ghauri told a news conference on Friday that the government will be approached to review its decision of levying 16 per cent federal excise duty on port services.
“We are all seeing a slump in international trade,” he said, after his meeting with stakeholders at the Karachi Port Trust (KPT) office. “Shipping agents, terminal operators and businessmen all have a problem with the tax.”
In the budget for fiscal year 2009-10 announced on June 13, the government introduced 16 per cent FED on port and terminal operators in relation to imports. Stevedores were spared.
Industry people say this will add to the cost of imports, something undesirable when already demand is sliding. Many industries import raw material for making exportable goods.
However, Ghauri said his ministry is reviewing if port charges, which shipping lines have to pay for using port facilities, could be reduced. “We want these charges to come down,” he said, later adding “notwithstanding the new tax, we will scale down our charges.”
Speaking about different projects being executed by the ports and shipping ministry, he said an investment of $4 billion is expected. Despite an economic slowdown, the KPT handled 38.5 million tons of cargo in fiscal 2008-09, slightly more than previous year’s 37.5 million tons. The Port Qasim saw goods pass-through of 25.5m tons, down from 26m in 2007-08.
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ISSN 1563-9479 
