N. Korean trading companies abandon train service for Nampo
Some of the North Korean trading companies that imported goods into North Korea through freight trains are now looking at other options.
This is because even though the trading companies have loaded inbound trains with state-approved items, the authorities take 40% of the imported items as “taxes.” Moreover, customs officials have forced them to turn over an additional 8% to 15% of their total haul. All of this runs counter to contracts the companies had concluded beforehand.
Ultimately, the authorities take over 50% of the imports as “tax.” Some traders have reportedly criticized the authorities’ behavior, saying that they have been “stabbed in the back.”
Initially, many traders thought they might pay around 30% in taxes, but with the authorities taking so much more than expected, they have suffered huge losses due to thin margins. ......
[Source: Daily NK]
