KPT litigates FBR for Rs8.2b tax deduction

Karachi Port Trust (KPT) has gone in litigation against the Federal Board Revenue (FBR) for an “unjustified” tax deduction of Rs8.2 billion from the port operator’s sources. Also, on Saturday Prime Minister Yusuf Raza Gilani announced the long-demanded restoration of
son-quota in KPT.
“You are requested to direct the FBR not to tax KPT which is a Trust,” Chairman KPT Aslam Hayat called upon Prime Minister Yusuf Raza Gilani while addressing a groundbreaking ceremony here at KPT which is reconstructing its berths, from 15 to 17 including Ship Repair Berths, at a cost of Rs8.3 billion with the World Bank funding. KPT, which has been making an operational profit of Rs12 billion during last the four years, had challenged the taxing of the non-profit Trust by the federal tax collector, in a court of law, said Hayat.
According to KPT chief, the berths would be completed in next two years, by 2014, at a cost of Rs9 billion and the spent money would be recovered within a couple years of their completion as KPT’s annual earnings for these berths amounted to Rs2 billion. “KPT, despite all existing odds, attracted a Foreign Direct Investment of over one billion dollars,” the chairman said.
In his speech, Prime Minister Gilani, lauding the 125-year-old KPT for proving itself a centre of progress over the years, announced the restoration of son quota in KPT. The premier also announced a one-month bonus for the cheering KPT employees saying the daily wagers and others employed on ad-hoc basis also be regularised. Asking KPT to donate 50 mobile vans to the Sindh government, the prime minister directed that locals be preferred in employments at the jetties at Baba and Bhit Islands. Also, PM asked KPT to build a football ground for the people of Keamari. “Let me compliment KPT, PQA and PNSC which have increased their annual operational profits to Rs18 billion,” Gilani said. Federal Secretary for Ports and Shipping Sarwar Raza Qazalbash said the 922-meter long and 16-meter deep berths would enable KPT to accommodate post-Panamax vessels and that PNSC had successfully replaced its aging fleet with the new one, mainly comprising of double-hull oil tankers.