MoC says taking efforts to bring down ACD to zero

ISLAMABAD: Commerce Ministry said on Monday it is fighting at the highest level to bring down Additional Customs Duty (ACD) to zero aimed at facilitating trade activities in the country.This was revealed by Commerce Ministry’s Special Secretary Shakeel Ahmed Mangnejo at a meeting of National Assembly Standing Committee on Commerce presided over by Muhammad Jawed Hanif Khan.Commerce Ministry was represented by Commerce Minister Jam Kamal, Secretary Commerce, Jawad Paul and other senior officials; and they briefed the Committee on different issues including update on implementation status of previous recommendations.RD slapped on 657 luxury goods: 2pc ACD imposed on import of 2,200 itemsThe Committee discussed trade related issues at length, the reasons for slow growth in exports and massive duty on those imports used as raw material for export-related items and the government’s plan to fuel export-led growth.Commerce Ministry briefed the Committee on the role of Tariff Policy Board (TPB), a body comprised of all concerned Ministries/ Organisations, empowered to finalise and forward tariff-related recommendations to Finance Ministry to refine them and incorporate them in the federal budget. However, the government has to keep in view other factors before taking any final decision.The Commerce Ministry’s Joint Secretary (Trade Policy) Muhammad Ashfaq informed the Committee that Commerce Ministry’s proposal on bringing down ACD on 341 tariff lines was not accepted, adding that this issue has already been taken up at the highest level; i.e., Prime Minister.In reply to a question, Special Secretary Commerce informed the Committee that Commerce Ministry is fighting for review of ADC on 341 tariff lines.However, Commerce Minister Jam Kamal toned down remarks by the Special Secretary and said that Commerce Ministry is trying to convince other stakeholders to review the decision on ACD and is not ‘fighting’ with anybody.Chairman Standing Committee argued that tariffs in Pakistan are high compared to other countries.Commerce Ministry explained that there is a difference between the conditions prevalent in Pakistan and other regional countries in the commercial sector.He further contended that no significant change in the budget can be made as the government is in talks with the IMF and Money Bill has already been passed by Parliament which is why it is necessary to take all stakeholders into confidence on policy matters.Commerce Minister said that the Government has made plans to increase exports to $60 billion. However, Standing Committee sought concrete and achievable trade enhancement plan from Commerce Ministry.Commerce Minister invited all political parties to agree on ‘Charter of Economy’, adding that such a Contract is necessary for the economic challenges facing the country.“If we want to increase investment in the country, we have to take necessary steps,” Jam Kamal added. Responding to Commerce Minister, PTI MNA Atif Khan said that PTI wants to give suggestions to improve the economy but his party is being portrayed as a traitor.Shaista Pervez Malik, MNA suggested that all political parties should sit at one table for the betterment of country’s economy.Standing Committee also deliberated on delay in release of due amount of duty Drawback of Local Taxes of Rs 37 billion including reasons for the delay and a timeline for the resolution of these cases.Commerce Ministry informed the Committee that in federal budget FY 2023-24, it requested Rs 26.987 billion funds however none were provided.MoC circulated a draft summary on December 27, 2023 for allocation of supplementary grant of Rs 37.306 billion, which was not concurred by Finance Division with the following comments “Finance Division does not support the summary for allocation of 37.306 billion. The Federal Government is committed under the IMF’s Standby Arrangement whereby no subsidy beyond the budgeted amount can be provided. However, Ministry of Commerce may review the budgetary allocation in their demand to see if any funds can be provided through re-appropriation. However, an amount of Rs 10 billion has been earmarked to release funds to exporters on pro-rata basis and Finance Minister has already directed that funds must be released.” Commerce Minister informed the Committee that cases of Rs 1.5 billion will be cleared during the first quarter of current fiscal year. He further stated that the cost of doing business by the industrial sector has had an impact on other sectors, as well. During discussion the issue of repatriation of profits by the international investors came up and Commerce Minister said that foreign direct investment requires protection.Reply to question, he said that the issue of IT sector exports in the light of current internet disruption is under discussion at the highest level as IT sector is the key sector which can give boost to exports. Commerce Ministry further informed the Committee that trade with India except import of pharmaceutical products is suspended since August 2019 after revocation of Article 370 by India.Copyright Business Recorder, 2024