PMMG for restoring ST exemption to import of generators

President, Pakistan Machinery Merchant Group (PMMG) Khurram Saigal has urged the Chairman, Federal Board of Revenue (FBR), to withdrawal S. R. O. 448(1) 2011 and restore sales tax exemption on import of generators.
In a communication to FBR chairman through Karachi Chamber of Commerce and Industry (KCCI), Saigal has drawn his attention towards serious problems being faced by PMMG members and general public due to the sudden withdrawal of sales tax exemption on "generators not locally manufactured' through SRO 448(I) 2011, as notified on May 21, 2011, just 15 day before budget announcement and on the import of other plant, machinery and equipment in respect of S. R.O 448(I) 2011, as notified on May 21, 2011 by amending the S.R.O 575(I) 2006, dated 5th June, 2006, read with Sr. No 21 & 23.
The aforesaid S.R.O had harsh impact on the small businesses and self-employed who are greatly dependent on import of generators to keep them going. Therefore, the government recognised this fact and its potential adverse impact on employment and allowed special relief in import tariff on "generators," but now suddenly, the relief has been withdrawn, he added.
This sudden manner of imposing such a high tax rate throws the economics of all manufacturing and business entities into disarray, which will have a very damaging impact on the manufacturing and service sectors, cottage industry, micro businesses. Now it seems that the total business is on hold and the wheel of economy has no way to move further.
Previously, exemption on plant and machinery and equipment was available through S.R.O 549(1)2008 dated June 11, 2008, which was subsequently ended by virtue of S.R.O.230 (1) 2011 issued on March, 15 2011.
The government is neither produces the level of power required to run the industries nor helping the entities trying to find solutions for the problem, in fact it is now causing hurdles by making amendments in S.R.O 575(I)/2006. The country has already faced a loss of 2-2.5 per cent of GDP because of power crisis. Thus, the actual growth of the economy will increase by 2 per cent, if government helps alternate measures of power generation by citizens/industries. In wake of the prevailing energy crisis in the country, the government should encourage people to produce power required to run industries at their designated capacities.