FPCCI concerned over inclusion of chemicals and dyes raw materials in Part 2 to Part 3

KARACHI: President Federation of Pakistan Chambers of Commerce & Industry (FPCCI), Anjum Nisar has expressed deep concern over the inclusion of chemicals & dyes raw materials in Part 2 to Part 3 which is for finished goods in the federal budget 2020-21and assured the commercial importers to raise their voice in front of decision maker.

Discussing issues of commercial imports during a meeting with Amin Yousuf Balgamwala, chairman, Pakistan Chemicals & Dyes Merchants Association (PCDMA) and former director, Karachi Stock Exchange, he demanded chairman FBR Javed Ghani to include the raw materials of chemicals & dyes in part2 instead of part3 and restore 2pc income tax on commercial importers and withdraw the decision to increase the income tax rate to 5.5pc; so that the industries can get cheap raw material. Otherwise, the production cost of industries will increase significantly.

Anjum Nisar had a detailed discussion with the chairman PCDMA on the budget anomalies and talked on phone call with the FBR officials.

He was informed about budget anomalies and requested to arrange an online meeting with Chairman or member FBR. In order to find a solution to the problems facing commercial importers, it is expected that an online meeting with the Chairman or member FBR may be convened.

FPCCI president also assured to solve the issue of valuation ruling of imported goods, which has not been revised for many years and stressed the customs officials to revise the valuation ruling in 90 days according to the prices available in the international markets as per the law, so that to protect commercial importers from losses.

Amin Yousuf Balgamwala pointed out that in the budget 2020-21, raw materials of chemicals & dyes have been included in part2 to part3 i.e. finished goods and the income tax has risen from 2pc to 5.5pc, which is nothing but losses. This move will make industrial raw materials more expensive, which will increase production costs and exporters will lose the ability to compete in global markets. "The customs department is committed to revise the valuation ruling in 3 months but the valuation ruling has not been revised for many years", he drew attention.

Chairman PCDMA further said that the prices of imported items in the valuation guideline of the customs department are not in line with the prices available in the international market, causing huge financial loss to the importers while the industries are also facing higher production cost due to high cost of raw materials.

Copyright Business Recorder, 2020