Establishment of dry ports in Balochistan demanded

Amanullah Khan

Karachi

In order to facilitate the industries and investors at Hub and other parts of Balochistan establishment of dry ports is required to increase the revenue collection from this region.
This was demanded by the President Lasbela Chamber of Commerce and Industry (LCCI) Ismail Suttar. He said that the justification of establishment of dry post at Hub/Gaddani has become unavoidable as more than 90% of Sales Tax and Federal Excise collected in Balochistan is being collected at Hub, and is likely to be increased with the increase in economic activities in the region after completion of Gawadar Port and CPEC projects in Balochistan.
More than 150 big and small industries are operating in Hub and other parts of Lasbela District and many others are either upcoming or under revival. Therefore the volume of import and export goods is likely to expand particularly with the increase in industrial activities.
The industries would be benefited by way of saving their time and additional cost of demurrage, if any, besides prompt availability of raw material to them which may otherwise become difficult due to heavy rush at Karachi ports. The establishment of dry port will also facilitate the customs clearance of export cargo particularly of non-traditional items like marble and granite, sea food, agricultural products etc.
It will also provide an incentive for the investors showing inclination for investment in Lasbela District. It may be pointed out that the revenue generated from Industries in Lasbela District and from other sectors like fisheries, ship breaking industry etc. in Balochistan, does not appear as revenue generated from Balochistan and hence the Provincial Government does not get its due proportionate returns, like contribution in Sales Tax, Income Tax etc. from the Federal collections, which is becoming not only a financial deprivation for its developmental activities but also for maintenance of exhausted infrastructure.
We would like to suggest that FBR should design policy and procedure to properly document the source of revenue generation. Meanwhile, we would like to suggest as a first step, to add a column in the sales tax and federal excise returns for entry of the “Source of Origin” of the respective tax.

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