Category of raw materials: APTTA urges government to include PCT:44.07

KARACHI: Chairmen All Pakistan Timber Traders Association (APTTA), Sharjil Goplani has appealed and urged Honourable Prime Minister, PTI government, Chairmen FBR and Chairmen Committee of Imported Goods to include PCT:44.07 in the category of Raw Materials as wood/timber is purely a very important raw material for many industries including construction industry.

The same has been recommended and confirmed by ABAD, PMFA and other trade bodies. Without the inclusion of PCT:44.07 in the XII th Schedule Part (II) the farsighted vision of Prime Ministers and his entire team will not be completed.

All Pakistan Timber Traders Association applauded and thanked FBR for rationalizing rates of Withholding/Income Tax for capital goods 1 percent, raw materials 2 percent and finished goods 5.5 percent irrespective of the status of importer whether commercial importer or manufacturer in the finance bill (2020-2021) which provides a level playing field for the importers.

We commend these farsighted steps which will provide a boost, strengthen and augment our economy. Raw wood and timber falling under (HS code 44.01 to 44.07) is basically non-indigenous raw material, undoubtedly falls under the category of raw material. As Pakistan does not produces any significant amount of wood & timber because of very scarce sources of forest area. However schedule XII (Part II) mentions our items as having 2 percent W.H.T/I.T being raw material. But it only mentions HS code 44.01 to 44.06 and overlooks.

PCT/HS code 44.07 and 44.07 undoubtedly falls under the raw material category. Besides, it's being raw material is further substantiated by the fact that the present rate of statutory duty is zero percent and it carries no competition as wood/timber (44.07) is not produced in factory but it is a natural product coming out of forests.

All Pakistan Timber Traders Association further mentions that Pakistan do not have any forests left so the demand has to be met through imports only and as known to all the forest cover is only 1.8 percent as per report and survey of FAO-United Nations 2015, our forests have disappeared due to massive De-Forestation.

"Wood, Timber PCT:44.07 is used in almost every stage of the construction industry right from ground breaking up to finishing and interiors. Wood and timber is used for multiple purposes as basic raw material such as furniture. Door frames (Chaukhat), window frames, slab filing, kitchen cabinets, pelmets, sofa frames, tools handles and a long list of items follows. This raw material is used from a daily wages carpenter, small workshops and up to the high tech factories.

The dream of Prime Minister for house to everyone and construction of 5 million houses by rationalization of Withholding Tax/Income Tax will not only give heavy boost to construction industry but it will pave way for plantation of one billion trees and will reduce de-forestation which. Hence, it is requested that Wood & Timber falling under Hs 44.07 also be included in schedule XII in (Part II).-PR

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