Trade bodies urged not to ignore interests of SMEs

KARACHI: The Union of Small and Medium Enterprises (UNISAME) has urged the trade associations to work for the cause of their SME members vigorously with devotion and dedication just like they work for the cause of their members belonging to the large sector.

President UNISAME Zulfikar Thaver said most of the trade bodies have majority of SME members yet they ignore the issues of the sector and fail to plead the cause of the majority sector with the ministries of commerce, finance and industries.

He said that none of the trade bodies took up the matter of relief for the sector in terms of the SME definition which clearly states the parameters of employment strength, turn over and productive assets.

He said that entrepreneurs employing up to 250 employees, having a turnover of less than 300 million rupees and productive assets of 100 million rupees are considered as SMEs and under the SME policy are entitled to relief where ever applicable. It is pertinent to note that the SME Policy 2007 is an approved document under the constitution and any violation can be challenged in a court of law.

He lamented that the Federal Board of Revenue (FBR) has disregarded the uniform legal definition and only allowed relief up to a turnover of rupees 50 millions and issued notifications that SMEs having a turnover of more than Rs50 millions are liable to act as withholding agents and deduct withholding tax from the suppliers and deposit it in the treasury.

Likewise they have imposed upon the SME brokers having small incomes

He urged the trade bodies to take up the matter with the FBR in the interest of their SME members and enlighten the FBR on the subject and advocate the cause of their SME members in the best interest of justice.

The Union has offered to help the trade bodies and urged the trade bodies to intimate them by forwarding copies of the pleas to the concerned ministries where ever applicable to protect the rights of the SMEs.

Copyright PPI (Pakistan Press International), 2011