Afghan Consul opposes Infrastructure Development Cess levy by KP govt on transit trade

PESHAWAR
Afghan Consul General in Peshawar, Hafiz Mohibullah Shakir has opposed levy of Infrastructure Development Cess (IDC) by Khyber Pakhtunkhwa government on goods being transported to Afghanistan under Transit Trade Agreement.
According to a press release issued here on Friday, the Afghan envoy expressed these view while talking with a delegation of Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI) which called on him under the leadership of SVP PAJCCI, Zia-ul-Haq Sarhadi.
Other members of the delegation included Farooq Ahmad, Director PJACCI, Imtiaz Ahmad Ali, Coordinator PAJCCI, Former President SCCI, Faiz Ahmad Faizi and former VP SCCI, Shuja Muhammad.
Afghan Counsul General was assisted by Transport Attache, Maulvi Said Muhammad Faiz and Public Relationing Officer, Shahid Khan.
Talking to businessmen, Afghan envoy said enforcement of any levy on transit trade is against the Geneva Convention under which land lock country, Afghanistan is being facilitated for import of goods.
Hafiz Mohibullah Shakir said such decisions have negative impact on bilateral trade and regional economy.
He demanded of KP government to fully abolish Infrastructure Development Cess which was earlier two percent, but has now been slashed to one percent.
Earlier, the delegation members raised the issues being faced by transporters and traders while transporting goods through Afghanistan.
Speaking on the occasion, SVP PAJCCI, Zia-ul-Haq Sarhadi said trucks traveling from Pakistan are only allowed up to Jalalabad city.
While for onward transport, Afghan trucks must be hired, which is increasing costs and logistical complexities.
Furthermore, Zia continued, Afghan government requires a security deposit equal to 110% of the custom value of goods being transported.
This deposit is held in the National Bank of Afghanistan and inflicts a significant financial burden on traders, he added.
While objecting the decision of IDC levy, Zia said the charges imposed by KP government on all the inward and outward transit goods is contrary to the Geneva convention which allows excess to all the goods in transit to land lock countries.
He demanded of KP government to forthwith waive off this levy from all kinds of export, imports and transit trade goods.
In response to the submissions of delegation members, Afghan Consul General held out assurance of taking up the issue with concerned officials for resolution of problems.