Advance tax collection issue will be resolved, Tarin tells pharma distributors

KARACHI: Federal Finance Minister Shaukat Tarin has ensured the pharmaceutical distributors to resolve the issue of collection of advance tax at the time of sale of medicines.

The section 236-G is related to the advance tax on sales made to distributors, dealers and wholesalers and section 236-H deals with the advance tax on sales to retailers.

A delegation of Pakistan Chemists and Druggists Association (PCDMA) led by Ghulam Hashim Noorani met finance minister Shaukat Tarin during his visit to Federation of Pakistan Chamber of Commerce and Industry (FPCCI) and discussed the imposition of Section 236-G and 236-H of Income Tax Ordinance.

Other members of delegation include Chairman PCDA Salahuddin Shaikh, and Deputy Convenor FPCCI for druggists and chemists Samad Budhani

On this occasion Special Advisor to Prime Minister on Finance Dr Waqar Masood Khan, Chairman Federal Board of Revenue (FBR) Asim Ahmed were also present.

The delegation explained the finance minister that as it is simply not possible for them to collect particulars of their buyers therefore this exercise had remained non practicable in the past.

Upon which finance minister directed chairman FBR to resolve pharma distributes. He said withholding of tax is not an answer to improve the taxation in the country, in fact taxes are only collected worldwide in two major heads - income tax and general sales tax.

Chairman PCDA Salahuddin Shaikh thanked finance minister and hoped that the issue would be resolved at the earliest.

Copyright Business Recorder, 2021