The Pakistan Industrial and Traders Associations Front (PIAF) while expressing disappointment over abolition of final tax regime (FTR) for importers of raw material has termed the imposition of minimum tax @ six percent as injustice to them.
PIAF chairman Irfan Iqbal Sheikh has said that the imposition of six percent withholding tax is injustice, hence, demanded restoration of the FTR. In an appeal to the caretaker prime minister, he said the commercial importers were expecting that the government would withdraw the amendments before finalizing the budget 2018-2019.
According to him, importers of raw materials were playing key role in country's exports as they provide raw material to textile sector. The industry was already facing higher cost in shape of utility raw material.
He said there should not be same treatment to raw material importers and commercial importers because raw material importers made foreign purchases for industry and any increase in taxes would translate to higher tax on industry.
He also demanded of the government to exempt the raw material importers from audit. He said that imposition of three percent further sales tax would also promote flying invoices and the government would lose significant revenue.
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