ISLAMABAD: The Pakistan Polypropylene Woven Sack Manufacturers Association (PPWSA) has sought similar concessions in withholding tax available to commercial importers, involved in flying invoices and inflicting huge financial loss to the national exchequer.
In a letter to Finance Minister Muhammad Aurangzeb, the Association has claimed that it is facing discriminatory withholding tax regime applied on the Polypropylene industry compared with commercial importers of Polypropylene Granules, a Polypropylene industry specific raw material.
The Association maintains that polypropylene industry, being import oriented, suffers heavy taxation due to anomalous tax structure. It pays income tax at the rate of 2% u/s 148 of Income Tax Ordinance 2001 and income tax @ 5.5% on the import of polypropylene raw material, spare parts and machinery. Contrary to this, the commercial importers, enjoy facility of minimum tax regime u/s 148(7A) of the Ordinance.
Copyright Business Recorder, 2024
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