"The facility for payment of 10 percent minimum value-added sales tax, in advance at customs stage, as available to commercial importers prior to 2007-08 Federal budget should be restored." This was stated by senior vice-president of Karachi Chamber of Commerce and Industry (KCCI) Abdullah Zaki in a statement issued here on Friday.
He recalled that according to the Special Procedure Rules 2005, prepared after reaching an agreement between the commercial importers and the Central Board of Revenue (CBR), commercial importers were exempted from sales tax audit, subject to payment of minimum value-addition of sales tax in advance at the exorbitant rate of 10 percent.
"The scheme proved a success by increasing the government revenue on the one hand, and minimising contact between a commercial importer and sales tax auditor, on the other", he said.
However, the scheme has been withdrawn in the recent budget vide SRO 468(I)/2007 without any prior consultation with the business community and taking into consideration that a vast majority of commercial importers earn their livelihood single-handedly as they do not have the means to hire staff to fulfil the new requirements, he added.-PR
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