Federal Board of Revenue (FBR), as a consequence of the previous series of meetings with representatives of Karachi Chamber of Commerce and Industry (KCCI) and other stakeholders which was concluded in a final meeting held at Islamabad on Saturday, 26th March to the benefit of both trade and industry as well as the national exchequer, notified to all customs and inland revenue officials.
That the Status of S.R.O 509(I) 2007 shall be maintained and relief will be provided to all falling under the 0 rating status of S.R.O 509. Siraj Kassam Teli, Chairman, Businessmen Group & former President KCCI, Zubair Motiwala and Haroon Farooki, Vice Chairmen BMG & former Presidents-KCCI and Mohammad Saeed Shafiq, President, KCCI, rigorously highlighted the view of Karachi Chamber and reservations regarding S.R.O 509(I) 2007 effective from 16th March, 2011.
They communicated effectively on the issue of withdrawal of zero-rating from all five export sectors including the textile sector. Since the trade and industry is suffering heavily due to the practical problems in implications and implementations of the S.R.O 231(I) 2011 which has amended the S.R.O 509(I) 2007 to abolish the 0 rating on all five export sectors including the textile sector.
Continued sessions were made between the Leadership of BMG, office bearers of KCCI, Mohammad Saeed Shafiq, President, KCCI, Talat Mahmood, Senior Vice President KCCI, Junaid Esmail Makda, Vice President, KCCI, M. Jawed Bilwani, Chairman Pakistan Apparel Forum; Haroon Agar, former Vice President-KCCI & Chairman, Pakistan Chemicals & Dyes Merchants Association, Maqsood Butt, Chairman APTPMA; Usman from Pakistan Yarn Merchant Association, Bashir Ali Muhammad from Gul Ahmed Textiles along with other stakeholders from all over Pakistan and Dr Abdul Hafeez Shaikh, Finance Minister, Salman Siddique, Chairman FBR, Abdullah Yousuf, former Chairman-FBR; Asrar Raouf, Additional Secretary Revenue Division FBR, members of revenue council Iftikhar Qutub; Shabbar Zaidi as well as entrepreneurs from all over Pakistan.
They hold discussions to eradicate the sufferings of 5 zero rated sectors due to consignments stuck at port and consequently facing heavy demurrages and shortage of raw materials. Iftikhar Qutab, Chief RGST/Sales Tax & Federal Excise Duty on 29th March, 2011 vide notification No.1 (140) Chief (RGST)/2011 stated that the implications of S.R.O 231(I) 2011 and withdrawal of 0 rating will be held in abeyance till further notification since the government is reviewing the 0 rating scheme and reduced tax rates to broaden the tax base and ease the burden of existing taxpayers. Similarly, it was also assured in the notification that Special Excise Duty shall not be charged from sectors falling under the S.R.O 509(I) 2007.-PR