Monday, October 18, 2021

PCDMA seeks FPCCI help for resolution of tax issues

KARACHI: Pakistan Chemicals and Dyes Merchants Association (PCDMA) has asked the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) to help in resolving issues regarding the classification of certain goods of the chemicals and dyes sector under the Income Tax Ordinance, 2001

A PCDMA delegation visited the newly elected FPCCI President Mian Nasser Hyatt Maggo in this regard, a statement said on Wednesday.

Led by Mirza Nadeem Baig, the delegation pointed out many issues facing the chemicals and dyes sector, including the classification of certain goods in part-III of the 12th schedule of Income Tax Ordinance, 2001. The importers on the other hand claimed the goods should be covered under part-I or part-II of this schedule, the statement added. Initially, the Federal Board of Revenue allowed all such disputed consignments securing difference of taxes in the form of pay order or bank guarantee till the importers provided documentary evidence that the claim rate had been allowed during the last financial year on the same goods.

The list of such raw materials was available in the then rescinded SRO 1125(i)/2011 which was accepted by the FBR to grant such exemptions, the statement said.

In the meanwhile, a list of industrial raw material approved by the FBR without taking into account the consideration of the trade to the effect that a detailed list of raw materials was already provided in the then rescinded SRO 1125(I)/2011. A detailed representation of the issue had already been made by the FPCCI vide letters dated 25-11-2020 and 26-11-2020 showing concern on encashment of pay order / bank guarantee by the FBR already deposited by the importers in this respect. However, the issue was not resolved by the FBR till to date.

FPCCI president Maggo assured his full support in removing the hardship of the industry. He said he would discuss the matter with the relevant departments. The meeting also suggested FPCCI consider the formation of committees for resolving the issues of income tax, sales tax, and customs duty.

It suggested the formation of an Arbitration Committee for resolving the mutual issues faced by the business community.

Source: The News

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