Around 900 percent abnormal increase in Customs duty on imported garments may encourage the commercial importers to opt some illegal means that could cause huge loss to the national exchequer. A 50-member delegation of readymade garments dealers from different areas of the city including Allama Iqbal Town and Shahalam Market on Thursday expressed these reservations during a meeting with the Lahore Chamber of Commerce and Industry (LCCI) Vice President Nasir Saeed.
They informed him that the Directorate General of Customs Valuation has drastically increased the Customs evaluation with an average of around 900 percent on imported garments.The delegation members - Tanveer Ahmed Soofi, Zahid Maqsood Butt, Ashraf Bhatti, Muhammad Shahzad, Shahzada Baber, Haji Farrukh Iqbal, Muhammad Adress, Ashfaq Butt, Ikhlaq Ajmeri also spoke on the occasion and expressed their concern over the increase of Customs valuation.
They said that extraordinary increase in Customs duty with an average of around 900 percent is unjustified and would force the commercial importers to find other illegal means to bring garments into the country. The valuation ruling on the import of unbranded garments was previously based on per dozen basis but the Customs department had now imposed duty on per piece basis, they pointed out.
The imported garments were being valued at the rate of US 4.4 dollars per dozen that has been increased to $3.3 per piece after amendment in the SRO 886. They further informed LCCI vice president that if this new valuation ruling is not withdrawn then the Customs department would not be able to generate revenue collected against the clearance of around hundreds of garment containers per annum. The increase in valuation would create monopoly of the local garment manufacturers which would deprive the poor of cheap garments, they said. Nasir Saeed assured the delegation that the Lahore Chamber would take-up the issue of massive increase in Customs valuation on the import of unbranded garments with the Directorate General of Customs Valuation (DGCV).
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