Will be half-effective if illegal trade not checked: IFCC chief

200% hike in customs duty on Pak goods

A body of businessmen doing trade with Pakistan, is not sure if the Centre’s decision to hike basic customs duty on all goods imported from Pakistan to 200 per cent will be so effective.

Speaking to ANI in Amritsar on Sunday, president of Indo-Foreign Chamber of Commerce (IFCC) Balbir Bajaj said: “This step was needed, but the Central government has responded late. I feel this step is half-effective. Until the smuggling routes from Jammu and Kashmir are not closed, the trade will continue to take place.”

“The Central government should take further steps to stop illegal trade,” he said.

Asked if the step would have an adverse impact on the business, Bajaj said: “The country is first. The trade is secondary. We can earn money by doing trade with another country. Trade with Pakistan is not that mandatory.”

“The way the trade is conducted across the border has changed over the years. It involves hawala transactions and illegal smuggling now. It is necessary for the government to take action against those behind these practices to make Pakistan feel the pinch of not having India’s MFN status,” said a trader.

India on Saturday hiked basic customs duty on all goods imported from Pakistan to 200 per cent in the wake of Pulwama terror attack. “The decision comes into force with immediate effect,” Finance Minister Arun Jaitley said. “India has withdrawn MFN status to Pakistan after the Pulwama incident. Upon withdrawal, basic customs duty on all goods exported from Pakistan to India has been raised to 200% with immediate effect,” he tweeted.