MULTAN: Punjab Revenue Authority (PRA) has exempted import shipments from Punjab Infrastructure Development Cess to promote business activities in the whole province including South Punjab.
According to details, business community and Industrialist of Punjab appealed from Provincial government to withdraw Punjab Infrastructure Cess on shipments to provide them financial relief because industries are facing severe issues after the pandemic of Corona Virus. Chairperson Punjab Revenue Authority exercised his power after the approval of Punjab Government under subsection 3 of the section 6 of the Punjab Infrastructure Development Cess act 2015.All import shipments have been exempted from paying Punjab Infrastructure Development Cess after the issuance of notification till 30 June 2020.
Talking with Customs Today Chairman Multan Dry Port Trust Khwaja Jalaluddin Roomi has welcomed the government of Punjab decision to exempt all import shipments from Punjab Infrastructure Development Cess cleared through different ports of province to promote business activities.
He said that current decision to exempt import shipments from Infrastructure Development Cess in province will revive closed business units in southern Punjab and provide employment opportunities to thousands of people. Infrastructure Development Cess has enhanced the business cost of importers and manufacturers were facing serious issues in competing global markets due to high cost of production. Different products manufactured in the whole province especially South Punjab region will meet the demand of markets.
Double taxation was a major impediment to economic growth and the government has taken decision to withdraw Infrastructure Development Cess for the promotion of business activities in the province. He told that importers and manufacturers were compelled for dual taxation on clearance of import shipments because importers paid almost 1.15 % at Karachi Ports for the clearance of shipments.
After the passage of 18th Constitutional Amendment, the Punjab government also imposed the Punjab Infrastructure Development Cess at the rate of 0.9% from July 1, 2015. “This levy inflicted a severe blow to upcountry dry ports, which have created multiple issues for the Multan Dry Port Trust and all imports were shifted to Karachi due to multiplicity of taxes,” Roomi said. Due to imposition of Punjab Infrastructure Development Levy import has been shifted to Karachi and other dry ports to avoid dual taxation.
Majority of importers preferred to clear their consignments at the Karachi port to avoid dual taxation after imposition of Infrastructure Development Cess. Punjab government has generated almost Rs4 billion from the Punjab Infrastructure Development Cess after its imposition but it disturbs manufacturing units badly due to increase in business costs.
He invited business community of South Punjab to come forward and take benefit of same service of Karachi at Multan Dry Port. Multan Dry Port is offering smooth clearance facilities to importers and exporters of the region and importer should avail swift clearance facility for handling of shipment. Government has taken decision to provide relief to importers and it will provide opportunity to importer to clear shipments from their nearest port.Multan Dry Port is offering an opportunity of swift clearance of consignments and same day clearance of batches is our trade mark, therefore importers and exporters preferred to clear their shipments from Multan Dry Port which also increase revenue and promotes business activities.
