Tea import
duty cut to 15pc demanded:
Smuggling on rise
KARACHI, March 23: Leading tea
packers and importers forecast that the smuggling of tea by
the end of fiscal 2001-02 will range between 35,000 to 40,000
tons as compared to 25,000 to 30,000 tons in 2000-01.
"Smuggling is gaining momentum day-by-day since the political
situation in Afghanistan has improved to some extent," an
official in Pakistan Tea Association said.
Tea consumption in Pakistan stands at 140,000 tons per annum
and a total of 25,000 to 30,000 tons of tea arrived through
illegal channels in 2000-01 while the rest of quantity was
imported.
Pakistan imported 68,262 tons of tea ($108 million) in
July-February 2001-02 as compared to 77,417 tons worth of $147
million in the same period of 2000-01, showing a decline of 26
per cent in terms of value and 12 per cent in quantity.
Import of tea in February 2002 stood at 8,685 tons ($14
million) as compared to 9,860 tons ($18 million) in the same
month of 2001.
Keeping in view the consumption of 140,000 tons, the import of
tea by the end of fiscal 2001-02 will range between 100,000 to
110,000 tons.
PTA official said that the smugglers have an advantage since
their cost of bringing tea into Pakistan has further declined
due to dollar depreciation and almost zero difference in the
rate both in open market and inter-bank.
He said that the importers have to bear a cumulative impact of
67 per cent in shape of duties and taxes in order to bring the
imported tea into Pakistan.
The government's aim to collect more revenue by enhancing
import duty on tea by five per cent to 30 per cent from 25pc
in July 2001 may not materialize by end of the financial year.
It can be reflective in the import figures of July-February
2001-02 as compared to same period of 2000-01.
PTA has urged the government to bring down the import duty to
15 per cent from 30 per cent in order to discourage the
on-going smuggling.
The Association has also taken up the issue with the Commerce
Ministry regarding misuse of dry ports by some unscrupulous
elements in the trade in order to evade import duties.
The gross misuse of dry ports for misdeclaration of origin and
under invoicing of price should be checked effectively as the
government is losing revenue in million of rupees, PTA said.
Courtesy Dawn March
24, 2002
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