ISLAMABAD: The Senate Standing Committee on Finance was informed on Tuesday that there is no tax on export of goods from Gwadar port.
The committee headed by its Chairman Senator Farooq H. Naek took up the issue of tax exemptions, establishment of green channels and linking of Gwadar port with Gulf countries.
Federal Board of Revenue (FBR) Chairman Javed Ghani informed the committee that the tax rate on export cell in Gwadar is zero and only one per cent income tax is levied for the development and prosperity of the region. He said Gwadar Free Zone facility has been provided so that exports can be improved and there is no customs duty on exports.
Regarding the complaints received at the Silk Bank branches in Islamabad during the year, the State Bank of Pakistan (SBP) officials told the standing committee that a total of 42 complaints were received against the bank. If the problem is not resolved, the bank would send it to the ombudsman.
The committee chairman asked for sharing of information with the committee.
Senators Anwar-ul-Haq Kakar, Musaddiq Masood Malik and Zeeshan Khanzada expressed some reservations regarding the bank complaints, to which Mr Naek said that the SBP should provide their written answers to the committee for detailed review.
Senator Musaddiq said that district wise details of bank credit and deposit should be provided to the committee in the next meeting.
In response to a question from Senator Anwar-ul-Haq Kakar, the committee was informed that border markets have been set up in Balochistan to curb smuggling and provide employment to the locals. This model has been adopted by various countries of the world. There are not enough resources to completely eradicate smuggling.
Mr Naek and Mr Mussaddiq said that the border market will promote black marketing and smuggling.
Published in Dawn, September 30th, 2020