It may be noted that the Punjab government has already faced music by imposing luxury tax on vehicles and big houses. The Punjab government is in the process of withdrawing it once and for all because the taxpayers had started applying for registration of their vehicles in other provinces. The Customs clearing agents said they are also facing a similar situation, as the importers are not ready to pay 0.9 percent on their imports. They said the government had adopted the measure to enhance revenue of the province but the situation on ground suggests that it is becoming difficult for the Customs Collectorate at the Lahore dry port to meet earlier years' revenue target. In addition, they pointed out that the clearing agents, their ground staff, dry port handling companies and the airport handling companies are losing business fast, a situation which multiplied economic effect.
Saad, one clearing agent, said he has lost three clients over the last one year, as they are not ready to pay hundreds and thousands of rupees under the Punjab Infrastructure Development Cess. Interestingly, they do not pay a single penny for release of their consignments at the Karachi port. They said the Punjab government should withdraw the Punjab Infrastructure Development Cess immediately. Otherwise, they have suggested an amended in law and make it compulsory for every importer registered in Punjab to pay this Cess irrespective of clearance his consignment from anywhere in the country.
Copyright Business Recorder, 2017