FBR agrees to discuss 13 major issues with Aptma

The Federal Board of Revenue (FBR) has accepted a proposal of All Pakistan Textile Mills Association (Aptma) to discuss 13 major issues directly affecting textile industry following changes in tax rates and tariff rationalisation through Finance Act 2014.
Sources told Business Recorder here on Wednesday that the Aptma, tax managers and budget makers of the FBR will sit together at the FBR House and discuss each issue raised by the textile sector. The APTMA has objected restriction on input tax adjustment, SRO.1125(I)/2011 and increase in import duty on accessories and spares of plant and machinery of the textile sector. In this regard, a meeting is expected between the Aptma and the FBR in coming days.
Following issues of Finance Act 2014 would be discussed between the Aptma and the FBR: Firstly, customs duty at the rate of one percent and sales tax at the rate of 5 percent on the import of raw cotton (HS Codes 5201 to 5203). Secondly, increase in import duty on accessories and spares of plant and machinery. Thirdly, taxes on viscose staple fibre and yarn made of viscose.
Fourthly, a uniform rate of customs duty levied on dyes except (HS Code 3204.1300 & 3204.1510). Fifthly, customs duty on the import of dryers (HS Code 3206.4990). Sixthly, customs duty on the import of colouring matters (HS Code 3206.4990). Seventh, customs duty on the import of generators above 1100 kVA (HS Code 8502.1390). Eighth, Restriction imposed under section 8B of the Sales Tax Act 1990 of claiming input up to 90 percent.
Ninth, Exclusion in SRO.504(I)/2013 of fabrics waste HS Code 6310 imported for recycling which is raw material for textile spinning due to which customs department is charging sales tax at the rate of 17 percent. Tenthly, recently, tax department has issued notices to may units (electricity providers where sales tax on electricity bill was not being charged) and has raised income tax liability under section 162 of the Income Tax Ordinance 2001 though units have discharged their tax liability. Eleventh, short-realisation of sales tax on the import of cotton lint under SRO.1125(I)/2011 as amended. Twelve, interpretation of Clause (IV) of SRO.1125(I)/2011 dated December 31, 2011 relating to local supply of textile yarn. Thirteen, pending sales tax refunds of Aptma member mills.