Ishaq Dar advises CM KPK to approach provincial governments for cess-free passage of goods

KARACHI: Finance Minister Ishaq Dar has advised Chief Minister KPK Pervez Khattak to approach provincial governments of Sindh and Punjab to effect suitable amendments in respective provincial legislations for ensuring cess-free passage for goods destined for KPK.

Chief Minister KPK Pervez Khattak had approached Finance Minister Ishaq Dar apprising him that the collection of infrastructure development cess (IDC) has run into snags due to issues beyond the control and jurisdiction of KPK.

The Khyber Pakhtunkhwa Chamber of Commerce and Industry also expressed deep concern regarding the fact the importers/traders in KPK were being subjected to double and in some cases triple taxation apart from paying IDC in Sindh where they are charged in the transit or transshipment stage, they also have to pay it in Punjab and KPK.

The Khyber Pakhtunkhwa Government considered the reservations of the local importers as genuine and agrees with their view point.

Pervez Khattak requested Ishaq Dar to step in and resolve the issue of the collection of IDC.

Chief Minister KPK proposed that IDC is charged and collected at the time of submission of GDs and not during the course of shipment of goods.

Ishaq Dar responded that levy of cess on goods destined for Khyber Pakhtunkhwa by the Punjab or the Sindh Government, under their respective provincial statutes, resulting in duplication of levy on the same goods, is an inter-provincial matter falling in the domain of provincial governments concerned.

The role of the Federal Board of Revenue is limited to the extent of providing technical software programme for IDC collection.

Dar advised Khattak to approach other provincial governments to effect suitable amendments in respective provincial legislations for ensuring cess-free passage for goods destined for Khyber Pakhtunkhwa.

Such an arrangement would be in line with international conventions and national laws which allow levy-free transit or transshipment of goods.

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