According to an announcement by Karachi Chamber of Commerce & Industry (KCCI) here on Thursday, the status of S.R.O 509(1) 2007 will be maintained and relief will be provided to all falling under the zero rating status of S.R.O 509 under which no duty will be levied on import of machinery or raw material for value added sectors.
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(1) 2007 effective from 15th March, it added.
They communicated effectively on the issue of zero-rating from 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 Esmall 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.
The discussions were made to eradicate the sufferings of 5 zero rated sectors due to stuck consignments at port and consequently facing heavy demurrages and shortage of raw materials.
Iftikhar Qutab, Chief RGST/Safes 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(1) 2011 and withdrawal of 0 rating will be held in abeyance till further notification since the Government was reviewing the 0 rating scheme and reduced tax rates to broaden the tax base and ease the burden of existing taxpayers.
Likewise, it was also assured in the notification that Special Excise Duty shall not be charged from sectors falling under the S.R.O 509(1) 2007.
The import consignments held at ports shall be entitled to benefit from S.R.O 509(1) 2007 retrospectively from 15th March, 2011 and accordingly no demurrage or detention charges should be levied.
KCCI has asked FBR to review the implication and substance in SRO meticulously with consultation to the trade and industry and all other major stakeholders since plant & related equipments are used in the process of industrialization which creates employment and inspire economic growth, which is much needed for the country in the current economic scenario.