950815

3 bodies set up to solve

customs, ST, excise

problems

RECORDER REPORT

KARACHI: Three working committees, headed by Collectors of Customs, Sales Tax and Excise respectively, are being constituted with a view to speedy redressal of the problems faced by trade and industry in these sectors, it is learnt.

V.A. Jafarey, Adviser to Prime Minister on Finance and Economic Affairs, agreed to set up the working committees after a meeting with Yaqub Karim, Chairman, SITE Association of Industry. As Karim told Jafarey, the problems are being aggravated due to uncalled for delay in attending to them.

One of the problems discussed in the meeting was that the multinational companies manufacturing toilet soaps, have lodged a strong protest over the tactics being used by the local companies for escaping the excise duty on tallow which has been increased from 15 percent to 25 percent. The local manufacturers, they alleged, prepare semi-finished toilet soaps in the form of chips or noodles and take them to the tax-exempted areas like Gadoon Amazai or Azad Kashmir for packing in the form of soap cakes to avoid duty, while the multinationals have to pay excise and suffer. By using this method the products of local companies become cheaper even than the laundury soap.

The complex situation at the customs stage due to dual system of price valuation by Cotecna/SGS and ITP was also discussed which is creasting a number of problems, including demurrage due to delay in issuance of Correct Finding Report (CFR) by the preshipment inspection companies.

The SITE chairman had also discussed these issues in a meeting with the Members of Excise, Sales Tax and Customs of the Central Board of Revenue.