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Islamabad Dry Port suffers big deficit due to imposition of Regulatory Duty on imports

Islamabad Dry Port suffers big deficit due to imposition of Regulatory Duty on imports

ISLAMABAD: The Islamabad Dry Port (IDP) has faced a huge shortfall during first two weeks of April FY17-18 under the head of Customs Duty (CD) due to imposition of Regulatory Duty (RD) on all the imported consignments.

According to details explained by an official source of the Islamabad Dry Port (IDP) that the IDP was assigned Rs135.29million of CD for first two weeks of April FY17-18 against a collection of Rs56.04million whereas the IDP received Rs122.38million under the same head during the same previous duration. The IDP has been assigned Rs339.29million as CD for the current month of April FY17-18. The IDP showed -59% decrease during first two weeks against an allocated proportional revenue target while it showed -54% decline against the identical corresponding FY16-17.
The sources told CT that, due to imposition of RD on imports of non-luxury and perishable goods, the IDP business activity got chocked. Sources added that the duty taxes which were paid worth Rs0.6million (06 laks) per container of 40 feet before the imposition of Regulatory Duty (RD) now reached Rs0.11million (11 laks). It becomes difficult for importers to continue business with the imposition of RD on almost all the imported goods.
The sources told the correspondent that RD must be minimized so that increase in the prices of daily used products can be controlled. During the last month, the SHC had struck down an amendment to the Customs Act which became the basis for the imposition of the RD on more than 356 goods in order to curb the growing imports.
It told the correspondent that on February7, the provincial court declared the Statutory Regulatory Order (SRO) 1,035 of 2017 unconstitutional which the FBR had issued in October 2017 to exercise the powers conferred by the amended Section 18(3) of the Customs Act-1969. The SHC declared the amendment to the Customs Act “ultra virus and unconstitutional”.