A Federation of Pakistan Chambers of Commerce and Industry (FPCCI) delegation held a meeting with Central Board of Revenue (CBR) chairman Abdullah Yusuf to apprise him of negative impact of the changes made in the budget in tax system. The delegation included Tariq Sayeed, Iftikhar Ali Malik, Shakil Ahmed Dhingra, Zakaria Usman and Shaukat Ahmed.
An FPCCI handout issued here on Friday said that Shakil told the CBR chairman that in the new budget the procedure for sales tax had been made cumbersome for commercial importers as the system of value-addition at customs stage was done away with and they were required to pay value-addition monthly with their sales tax returns while adjusting 90 percent output tax from input tax, maintain record and they were subject to audit.
The handout said CBR chairman agreed that commercial importers would pay additional 2 percent sales tax as value-addition and it would be their final liability. He said that the importers would also be exempted from filing monthly sales tax returns.
It added that FPCCI team also took up the matter of sales tax on items subject to 20 percent sales tax and it was pointed out that where input tax on raw material was 20 percent and the final product was subject to 15 percent sales tax, since capping of 90 percent adjustment will create problems as the manufacturers would have to wait for refunds. The FPCCI recommended that capping of 90 percent input adjustment be withdrawn.
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