3% WT imposition on raw material irks tradersDecember 11, 2013
KARACHI: The imposition of three percent withholding tax (WT) by Federal Board of Revenue (FBR) on import of raw material has dismantled the level-playing field.
A delegation from Pakistan Yarn Merchants Association (PYMA ) led by its Chairman Khurshid Ahmed Sheikh visited FPCCI and met Zubair Ahmed Malik, President of FPCCI at the Federation house, Karachi.
They discussed various issues faced by their members, particularly imposing three percent withholding tax by FBR on import of raw material by commercial importers against one percent by industrial importers, which has dismantled the level-playing field.
They feared that such a discrimination would not only lead to eventual elimination of economic activity conducted by commercial importers but would also encourage fake manufacturers to take advantage of unfair tax rate. The PYMA delegation also expressed their concern on levies of two percent value-addition tax as well as two percent sales tax on commercial
importers and said that they were highly unjustified since 100 percent value addition would not only increase cost of doing business but would also facilitate misuse of value-addition.
Malik, President of FPCCI, informed the PYMA delegation that he would also like to invite the manufacturers in order to listen to their point of view as well and thereafter approach the Ministry of Finance and FBR to reconcile the matter keeping in view the grievances of both the parties.