PCDMA Urges Removal Of Tax 'disparity' On Raw Material Import

The Chairman of Pakistan Chemicals and Dyes Merchants Association (PCDM), Shahid Waseem, has called for the redressal of, what he called, disparity in taxes on raw materials imported by industrial and commercial importers

KARACHI, (UrduPoint / Pakistan Point News - 25th Jun, 2019 ) :The Chairman of Pakistan Chemicals and Dyes Merchants Association (PCDM), Shahid Waseem, has called for the redressal of, what he called, disparity in taxes on raw materials imported by industrial and commercial importers.

He maintained that tax concession given by the Federal board of Revenue (FBR) was being misused, causing loss to the national exchequer up to Rs 50 billion per annum, said a PCDMA press release on Tuesday.

"This inequality in taxes did attract unscrupulous persons to import raw materials in the name of industrial importers and sell it in the open market. Thus, destroying the legitimate business of commercial importers as their import cost was higher than the cost of industrial importers," he said.

Closed industrial units and many operational ones were also taking advantage of the alleged flaw by importing raw materials beyond their actual consumption and selling the same in open market, damaging the business of commercial importers, he maintained.

Shahid Waseem also mentioned that withholding income tax paid by commercial importers at import stage is 6% that is non-adjustable whereas industrial importers paid 5.5% which is adjustable/refundable.

They also got exemption certificate for further import when their tax reached last year tax limit. The effective rate of 6% became 10% depending on rate of Customs duty as WHT is appliedon C and F value plus Custom duty and Sales Tax.