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In order to educate and facilitate the Port and Terminal Operators about the recent levy of Federal Excise Duty in VAT mode on their services, an orientation seminar was conducted by the Large Taxpayer Unit, Karachi on Tuesday, 23rd February, 2010.
Organized by the Taxpayer Facilitation Division of LTU, the seminar aimed at providing information and assistance to the port and terminal operators about payment of 16% Federal Excise Duty in VAT mode on services rendered by them at or near any port area. In the Federal Budget 2009-2010, the Government levied FED on services provided by port and terminal operators at the rate of sixteen percent. However, it was found that many such units who were engaged in providing services like piloting and berthing of vessels, loading and unloading of cargo, storage, delivery, etc. at or near the port areas were not aware of the levy of FED on their services.
The seminar was attended by representatives of Karachi Port Trust as well as many prominent terminal operators. Addressing the audience the Chief Commissioner LTU, Mrs. Yasmin Saud emphasized on the need to improve compliance level of the taxpayers through education and awareness.
During the panel discussion, Mr. Ashfaq Tunio, Additional Commissioner answered wide-ranging questions raised by the audience on the scope of FED on services, payment structure and philosophy behind introducing FED in VAT mode. Mr. Mardan Abbasi from Karachi Port Trust provided some support information regarding stevedores and terminal operators.
During presentation, Ms.Farah Farooq, Deputy Commissioner TFD (Taxpayer Facilitation Division) covered the legal provisions and view point of tax authorities on this new levy.
The participants appreciated the initiative by LTU, Karachi which was aimed at better awareness among taxpayers, encouraging voluntary compliance and removing any practical difficulties being faced by them.