Who Owns Pakistan - Yimg

Export Duties
It is one of the most irrational set of duties at a time when govt's top priority is to
increase exports. Ironically on the one hand, govt is levying duties on export, on
the other hand, rebates are being provided to exports.
Export duties were introduced by Z A Bhutto govt in 1972 after the massive 110
percent devaluation to prevent windfall profits into hands of the exporters. But
they have continued as a measure of revenue collection.
While an export tax is collected by the federal govt, the local bodies also collect
export tax on goods exported from their municipality, whether for domestic
consumption or export. The export tax paid to the local bodies is claimed by the
exporters for refund and has again given rise to new avenues for corruption and
pilferage. In the sub-chapter about rebates bonanza, we have already referred to
the statements of Punjab Minister for local bodies Raja Mohammad Basharat
Elahi that the contractors of the export tax and octroi owed millions to the govt in
this head.
Development Surcharge
It is another irrational and exploitative tax which was rooted in corruption and has
given currency to pilferage of govt funds on a massive scale. The development
surcharge was initially levied on fertilizer, natural gas and petroleum products
and meant to "siphon off surplus profit of companies, representing the difference
between the cost of production and fixed scale price, or between the average
import price and the prescribed scale price of locally manufactured goods".
In simple words, development surcharge is levied on goods which are imported
or produced cheap but are sold at high price fixed by govt. However, over the
years the purpose and the very nature of the development surcharge has been
distorted and its worst form it is now applicable on WAPDA electricity bills, at
such an exorbitant rate that the amount of surcharge far exceeds the original bill
for electricity consumed.
As is obvious from the name, development surcharge was meant to finanace
specific development projects but ironically a large portion of receipts from
development surcharge are refunded, by way of refunds for specific purposes. As
for example, a large portion of development surcharge from refineries is refunded
to marketing companies to cover;
A) transportation cost over and above the freight margin included in the
consumer prices for the equalization of prices of petroleum products.
B) Imort cost of refined petroleum products over and above the ex-factory prices
and
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