Business community wants duty on gas generators cut

Business community has criticised powers given to tax collecting authorities in federal budget 2007-08 and demanded that these powers should be withdrawn. This demand was made during a joint meeting of five sub committees of Karachi Chamber of Commerce and Industry (KCCI) held under the Chairmanship of Mohammed Haroon Agar here on Monday.
Sub-committees including Customs, Imports, Export, Labour and Industry. Sources said that they discussed federal budgetary measures in detail. Some of the participants have criticised changes in sector 25 and 25-A as well as addition of section D-25 of valuation and added that these changer are not acceptable to them.
Opposed the changes and addition in these sectors they claimed that these changes have given huge discretionary powers to the valuation department and collectors, which might be misused.
They also demanded withdrawal of Sector 18 of valuation and noted that under thesis sector some more texts can be imposed on importers and exporters. Meeting also discussed withholding tax and its reduction from 6 percent to five present. They demanded that it should be further reduced to 3 percent. Importers of generators have demanded that duty on petrol and gas power generators up to 5 KV which are commonly used domestically should be reduced to zero
They pointed out that in budget duty on diesel generators up to 5 KV have been reduced to zero whereas domestically gas and petrol generators are commonly used in instead of diesel generators.
They demanded that duty on import of gas and petrol generators should also be reduced to zero The meeting demanded that one-percent tax on import of pharmaceutical raw material should be withdrawn. Withholding tax imposed on import of yarn at the rate of 5 percent should be brought down to one percent.
Duty on smuggling prone items should be fixed at 10 percent During the meeting they appreciated some of the budgetary measures. Haroon Agar informed the meeting that chairman, Central Board of Revenue (CBR) Abdullah Yousif has assured him that CBR would take care of concern of business community on the budget.