"Government should consider to rationalize the Afghan Transit Trade Tariffs in equivalence to Pakistan Duty Tariffs to safeguard the business of Pakistan's legal importers and to increase government's revenue", expressed by President, Karachi Chamber of Commerce & Industry, Abdul Majid Haji Muhammad. He while addressing to the delegation of Pakistan Tea Association strongly condemned the unlawful entering of tea consignment in Pakistan, imported via Afghan Transit Trade.

He observed that several Afghanistan-bound containers are diverted to Pakistani markets from Quetta and Torkhum and every day hundred of bags are disseminated in Pakistani markets resulting colossal losses to the legal importers of tea who pay high duties to the Government. Abdul Majid informed that at times, in several meeting, the ATT issue is highly voiced to the high-ups at Islamabad and KCCI has urged to resolve the issue while taking the stakeholders and KCCI into confidence.

He also referred that in context of ATTA, KCCI is regularly attending the meetings at Islamabad to identify the modalities and providing productive input to protect the legal rights of importers and to enhance the revenue generation for the Government. President-KCCI also quoted to hold a single agenda meeting on ATT with Finance Minister. He concluded that KCCI believes in provision of equal level playing field for all sectors. Vice President-KCCI, Javed Ahmed Vohra while referring his participation in the ATTA meeting held at Islamabad in the last month, informed that he on behalf of KCCI has raised high voice for rationalizing of duty tariffs of ATT and proposed to review ATTA in line with the Agreement of India-Nepal for transit trade and the agreements of other land-lock countries and imply products identification and restrictions.

He added that it was also urged to restrict ATT import of tea as per the existing need of Afghanistan. Earlier, President-KCCI, welcomed the delegation of Pakistan Tea Association, headed by its Chairman, Hamid Saeed Khawaja accompanied by former Chairman, Muhammad Hanif Janoo and Vice Chairman, Abdul Basit and other members.

The delegation informed about their apprehension in the tea business due to Afghan Transit Trade. President-KCCI asked for written proposals for onward submission to government on tea import via ATT and assured best cooperation and support to Pakistan Tea Association for their genuine demands. Chairman, Pakistan Tea Association, Hamid Saeed Khawaja highlighted that to fulfil the needs of consumption, 175 million kilograms tea is imported and each Pakistani individual consumes 1 kg tea every year in Pakistan. He stated that tea is a 100 percent imported item, Last year approximately 105 million kilograms is the official import whereas 70 million kilograms was imported unlawfully via ATT.

He bemoaned that due to shortfall of rain in tea producing countries and devaluation of Pak Rupee, the cost of doing business has increased giving more advantage to the smugglers as legal trade is subject to duty on ad-vol-arum basis (higher the cost higher the duty) whereas smuggling cost is fixed. Chairman-PTA, lamented that due to uncontrolled smuggling of tea and import via ATT, the legal importers are facing high disparity and fearing total losses in their business.

In a comparative presentation he informed that during the month of August, legal import of tea was 131262 packages and ATT import was 249340 packages, in September, legal import was 120587 packages and ATT import was 97833 and in October 88000 packages were legally imported and 184099 packages were imported via ATT. He voiced that unlawful import is resulting a loss of Rupees One Billion to Government revenue every month. Several companies engaged in tea business are intending to close fearing huge losses.

He said that tea import represents only 1 percent share in the total national import bill. Chairman-PTA bewailed that concerned quarters of the Government are already aware of this menace and the ATT figures regularly appear on their website but they are not paying the deserving attention to the grave issue. He voiced that despite of paying 39 percent in various duty taxes, they are forcefully deprived of their business benefits which has reached to the verge of closure. He requested President-KCCI to take-up their case and apprehensions to the Government for immediate remedial measures.