Karachi, June 11, 2015 (PPI-OT): The Chairman of Pakistan Chemicals and Dyes Merchants Association (PCDMA) strongly opposed the budget 2015-2016 for not accepting any demands from commercial importers. He asked the Federal Minister of Finance to introduce the polices to improve the commercial and industrial activities to get more revenue and less refund.
Haroon Nisar Numberdar has also strongly opposed the increased of penalty from 5000 to 50,000 for not pasting the invoice on imported containers and demanded of penalty should be withdraw. He said that importers cannot get any benefit for fixing the invoices because custom department has made valuation of imported item of their own prices and never accept the prices based invoice on container at any stage but importers always oblige this rules. He further said small or medium importers who import the goods of 50,000 or more gets more hurt.
Chairman PCDMA has further said that in Budget Proposal PCDMA gave suggestions to revise 58E(2) and gave exemption of Audit to commercial importers but their demands not included in budget. He said due to withdrawal of clause 58E(2) from the Sales Tax Special Procedure Rules 2006 vide finance Act 2012 and consequently subjecting them to Audit, although they pay @3% value added tax in advance at import stage.
This created an ambiguity as on the one hand they are required to pay value added sales tax @3% whereas on the other hand they have been subjected to audit. This is against the basic principle and spirit of the value added sales tax scheme. Hence, it is suggested to reinstate the clause 58E(2) of sales tax and exempts the audit to commercial importers.
Chairman has suggested that after increasing further tax to Unregister Person from 1% to 2% only flying invoice will generate and due to this flying invoices, Government will only gets loss of millions of Rupees in Revenue. Haroon Nisar has demanded to withdraw its increased and allow to adjust, in Industrial Raw Material – Chemical and Dyes under Pakistan Custom Tariff chapter 25-40.
For more information, contact:
Syed Shakil Ahmed
Pakistan Chemicals and Dyes Merchants Association (PCDMA)
Chemical and Dye House, Rambharti Street,
Jodia Bazaar, Karachi-74000
Tel: +92-21-32432752, +92-21-32439124