The importers, particularly those running industries, are likely to face a fresh setback, as the Federal Board of Revenue (FBR) put the review of valuation advice process in the doldrums, Business Recorder learnt on Thursday.
According to sources a delegation comprising businessmen from Karachi, Lahore and Islamabad called upon Chairman FBR, Ahmed Waqar, in his office on Thursday and expressed its concern over the issue. The sources further said that delegation informed the chief of FBR about the declining prices of imported materials, including raw material for manufacturers, which in fact had raised the valuation advice up to 80.5 per cent during the last 6 to 8 months.
The sources said the delegation quoted section-19 of Customs Act according to which the industrialist could be given a one-time waiver in case of frequent change in the prices of raw materials. Accepting arguments of the traders, Waqar said, it is still indecisive that which ministry would move a summary to the Economic Co-ordination Committee (ECC) for its review of the valuation advice.
The sources said that delegation stressed the FBR officials that they were responsible for moving a summary to cut in valuation advice, as the importers were facing hardship, but they refused to move the matter before concerned authorities. "Later on the delegation was asked to contact Advisor to Prime Minister on Finance Shaukat Tarin to solve their problems," they added.
The sources said that the authorities of Pakistan Steel also made many requests to FBR for reviewing the valuation advice, as officials informed FBR that purchasing of steel went out from approach of buyers due to high value advice. The sources said that the imported goods of million of dollars are waiting at port for release, but due to delaying tactics by FBR the importers were facing hardship, even many of the industries are compelled to shut their production.
The sources said that during the last one year custom valuation department of Federal Board of Revenue (FBR) has increased the valuation of steel, chemicals, plastic and other raw materials in the line with international market.
Source said that according to custom rules and regulations in ordinary conditions, the custom authorities have to revise the valuations of imported products and raw materials by considering last 90 days prices in the world market.
While, in frequent (over 10 per cent) change in prices of any goods in the international market, the custom authorities is bound to revise the valuations.
Sources said that since the last two months the prices of imported raw material has been continuously declining in the world market and prices of some imported items have reduced to less than previous level. Quoting an example they informed that scrape prices in the world market have declined to 225 dollar per tonne, while custom is calculating taxes on the valuation of over 500 dollar per tonne.
Likewise, plastic raw material was being imported at 2,200 dollar per tonne, but after decreasing trends in oil markets the plastic manufacturing material went down on 800 per tonne.
They said that the prices of all industrial commodities had been cut in the international market, even in London Metal Exchange, which is counted as standard for steel products' valuation advice. The members of delegation included Vice President Federation of Chambers of Commerce and Industry Zubair Tufail, Chairman, Standing Committee on FBR Shaikh Shakil Ahmed Dhingra, Muzzafar Ahmed and other.
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