Tax Rate on Import of Raw Material Be at Par to Provide Level Playing Field

Tax rate on import of raw material between Industries and Commercial importer should be at par to provide them level playing field as few industries are importing raw material more than their consumption and selling in Market which causes heavy financial losses by commercial importer and in results many items are not feasible to import commercially, but this justified demand of Commercial importer of industrial Raw material not accepted in Financial budget.

Vice President of the Federation Of Pakistan Chambers of Commerce and Industry (FPCCI) and Chairman Indenters Association Of Pakistan (IAP) Saqib Fayyaz Magoon expressed frustration over not including of Industrial Raw Material Commercial Importers Proposals in the Budget 2017-18 and requested to Finance Minister Mr. Ishaqe Dar and Chairman FBR to remove Budget Anomalies.

During meeting with delegation of Industrial Raw Material Commercial Importer, Saqib Fayyaz Magoon said that in financial Budget 2017-18 , Commercial Importer of Industrial Raw materials has been badly ignored, Which may cause bad effects on Industries Also. As these Commercial Importers are back bone of industries and they give assurance of continuous supplies of Raw material to industries.

He also agreed with members of delegation that FBR should not asked for verification in case of sale to unregistered person of item listed in SRO 1125 zero rated for five sectors. FBR Field staff ask for verification that either those unregistered persons belongs to particular five sectors or not, This type of verification is not practically possible as how sellers can verify unregistered person where as up till now even FBR is failed to bring those unregistered person in tax net . The condition is thus abused by the field staff and encourages corruption.

He said that before there was 500 Items in SRO 1125 but now only 128 items are remaining which only use in These export oriented five sectors, So saquib Fayyaz Magoon Urged Chairman FBR that this anomaly should be addressed and sales of items listed in SRO 1125 should be with out Condition of buyer’s verification.

Saqib Fayyaz Magoon also demanded that difference of tax rate should be minimised between Industrial Raw material’s commercial importers and Industries to provide level playing field for both of them.

He Hailed Federal Govt who increased funds about 21% in different heads for Education in Financial budget 2017-8 which will bring improvements in broader Aspects of Economy and development of country.