Import restrictions in different forms, government directed economic policies and corrupt bureaucracy are hindering regional trade in South Asia, said a recent World Bank (WB) study.

The WB report on 'Trade Policies in South Asia' blamed mostly India, followed by Bangladesh, Pakistan, Nepal and Sri Lanka for imposing protective import tax, a deterrent to maximising regional trade volume.

The report recommended abolishing protective import taxes, slashing customs duty and improving general conditions for trade within the region to reap maximum benefits from trade liberalisation.

The average customs duty along with other protective taxes in India is the highest in the region, which is 32.7 per cent, followed by

Bangladesh 26.4 per cent, Pakistan 18.2 per cent, Nepal 16.2 per cent and Sri Lanka 12.5 per cent, according to the report.

Terming the corrupt bureaucratic attitude a deterrent to trade liberalisation, the report said bureaucrats in the South Asian countries often act against trade liberalisation.

"The interests which resist change often include the bureaucracies which are responsible for the administration of tariffs and protective controls..." the WB observed.

It said bureaucrats see trade liberalisation as a threat to their jobs, which also offer informal opportunities like bribes.

Furthermore, government directed economic policies that have a basic distrust of both private enterprises and international markets also act against openness to trade, the report said.

About the protective import taxes such as luxury tax, special tax, supplementary duty, antidumping duty, VAT on import, the report recommended the governments concerned either to abolish or merge the same into customs duties.

The WB report also recommended introducing a uniform tariff structure including topping down import duties in South Asian countries as part of tax reform.

It also suggested for improving general conditions for trade within the region. These include development of transport, communication and market intelligence among the countries to increase their trade volume.

Besides, the WB underscored the need for simplifying travel rules and customs procedures among the South Asian countries to reap benefit from trade liberalisation.