KARACHI: Mian Anjum Nisar, President of Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has urged the Federal Board of Revenue (FBR) to address the grievances of the industry immediately and resolve the issues being faced by the industry through amendments and inclusion of all industrial raw materials in SRO 1240(1)/2020 dated November 20, 2020.

He said that the amendments cover limited industrial raw materials for inclusion in the 12th Schedule through SRO 1240(1)/2020 dated 20th November 2020. The FBR has allowed a list of industrial raw materials for benefits under 12th Schedule.

The FPCCI was continuously emphasizing for the removal of duties/taxes on the industrial raw materials. However, the SRO 1240(1)/2020 dated 20-11-2020 cover limited items, while there is an exhaustive list of industrial raw materials already contained in rescinded SRO 1125(1)/2011 dated 31-12-2011. In order to further facilitate the industry there is an immediate need to revise the list of industrial raw materials as per SRO 1240(1)/2020 dated 20th November 2020.

However, Chairman Pakistan Chemicals & Dyes Merchants Association (PCDMA) Mirza Nadeem Baig said the FBR has met the long-standing demand of PCDMA by removing chemicals & dyes raw materials from Part 3 (finished goods) and put now in Part 2 (raw materials).

In this regard, SRO 1240 has also been issued under which the previous rate of two percent income tax for commercial importers has been allowed.

He said that in the federal budget 2020-21, the raw material of chemicals & dyes was mistakenly shifted from Part 2 (raw material) Schedule to Part 3 (finished goods) Schedule and due to this, the income tax rate for commercial importers was increased from two pc to 5.5 percent.

"PCDMA informed the FBR's anomalies committee that raw materials could not be included in the finished goods, after which the anomalies committee allowed to pay two percent income tax instead of 5.5 percent, while under section 81, a pay order of 3.5 percent has to be submitted which will be returned after the decision is taken," he mentioned.

Copyright Business Recorder, 2020