Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said that the issue of reduction of value-addition of 10 percent against 14 percent proposed in the Finance Bill 2004-05 has been resolved.
It was made mandatory for the commercial importers to pay 14 percent value-addition at the time of import for availing the facility of exemption of sales tax audit or scrutiny of record if such minimum value-addition is declared.
The resolution was passed during the FPCCI meeting chaired by its president Riaz Ahmed Tata. The meeting was specially called to consider the proposal of reduction of value-addition of 10 percent against 14 percent.
Tata and chairman of FPCCI standing committee on sales tax Shaikh Shakil Ahmed Dhingra appreciated Central Board of Revenue (CBR) chairman Abdullah Yousuf, Member Sales Tax Shahid Ahmed and Collector Sales Tax Khawaja Tanveer Ahmed for their positive role in the resolution of problems and irritants highlighted by the FPCCI in the budget 2004-05.
Tata informed the meeting that the CBR has assured that they will issue a notification if the FPCCI will recommend to the CBR that minimum value-addition of 10 percent will be mandatory at the time of import for availing the facility of exemption of sales tax audit or scrutiny of record if such minimum value-addition is declared.
Sheikh Shakil Dhingra apprised the meeting about the pre- and post-budget meetings with officials of the CBR. He said that due to the positive approach of the CBR chairman, the FPCCI succeeded in getting the 3 percent further tax abolished and in the resolution of other irritating issues.
He said the FPCCI will try to ensure that the exemption of audit become a part of law if a commercial importer pays 10 percent value-addition at the time of import.
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