All concessionary SROs giving exemptions in sales tax and import duties are likely to be scrapped in the ensuing budget for 2004-2005, it is reliably learnt.
The government is reported to be of the view that these concessions had created discrimination in the performance of the various industries.
There are certain items in the agriculture sector, which are imported under zero duty. These concessions are likely to be done away with.
Giving an example, the market sources said that the Nawaz Sharif government had allowed the import of CKD parts of the farm tractors duty free. The tractor manufacturers were also exempted from 20 percent sales tax.
In return, the manufacturers had given an undertaking that they would not increase the tractor prices. However, this undertaking has been violated and the tractor prices were enhanced two times. The government now wants to remove this facility.
The import of edible oil for the ghee making industry operating in Fata and Pata is free of import duty and exempted from 20 percent sales tax. This facility is also being misused as the edible oil thus imported is being sold in other parts of the country, adversely affecting the performance of ghee industry in the organised sector.
Representations are being made repeatedly for the last many years but with no effect. This time, the Fata and Pata industries are likely to be treated at par with the industries in the organised sector.
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