Recently the FBR had notified that the government has also allowed 80% percent rebate in the tax liability of pharmaceutical distributors, distributors of fast moving consumer goods and distributors of fertilisers and 80% tax rebate would be available only on payment of turnover tax.
In this regard, it is pointed out that many multinational companies have designated their selling agent as dealers instead of distributors. Rafhan Maize Products Company Ltd, Faisalabad, is such an example to mention. It has appointed dealers all over the country and most of the dealers fall under the turnover tax regime. Moreover, Rafhan is the leading manufacturer of pharmaceutical products and other refined starches, which are used not only in manufacturing of pharmaceutical products and medicines but also in other industrial raw material in industrial sector.
In view of the above facts, through the courtesy of your esteem newspaper, we request Israr Rauf, FBR member, to remove the ambiguity or distinction between dealers and distributors and both the categories be treated on equal footings. If the dealer qualifies other condition of turnover tax, then 80% tax rebate be also available to Rafhan's dealers, who come under the purview of turnover tax.
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