Referring to the News in Dawn Newspaper dated June 23 2009 regarding 'FED on port services to prevent ships calling' by Capt. Anwar Shah - Karachi Chamber of Commerce supported his views.

Mr. Nasir Mehmood - Chairman Shipping Committee of KCCI said that FED imposed on Terminal and Shipping Lines must not be transferred on the Trade. He said that the Trade is already suffering from Ex-orbit ant charges being charged by Shipping Lines / Freight Forwarders and Terminals and it is feared that impact of recently imposed FED might also be transferred to local Trade, which will directly increase 'Cost of Doing Business' for Pakistan's Trade. Citing an instance, he said Maersk Line is being charging 20,000 to 30,000 rupees where Importers are not being able to get their D/Os within 10 to 15 days. Similarly, most of shipping lines (APL, Maersk, Cosco, Hanjin, Hyundai) operating in Pakistan are having Tax Exemptions on their Freights and charges hence can subsidize the Freights and recently imposed FED.

Contrary to that, local Trade is already paying hefty amounts of Taxes on different accounts to National Exchequer. Therefore, it seems more prudent to broaden the tax net by taxing the Terminal Operators & Shipping Lines instead of Local Trade.

He said, as been said by Capt. Anwar Shah that Port of Singapore had twice reduced their Tariff to around 35% is a very relevant example to be followed in Pakistan. Owing to the recession and sluggish Pakistan's economy it is needed that Terminals & Shipping Lines should reduce their charges to facilitate the Trade.

On behalf of KCCI - he reiterated KCCI suggestion that a Single regulatory authority on top of All Terminal Operators, Shipping Lines and Freight Forwarders is the only solution, by which GoP can better exercise their Control on Taxes and also the local Trade can be supported efficiently. He said the structure & modality of that regulatory authority be such that it can take independent decisions on Tariffs and of Trade disputes.