By way of potential and performance, Pakistan entrepreneur is second to none in the world. Nevertheless, it is imperative that the private sector of Pakistan should also pay its share of income to the government so that we may achieve our target of national reconstruction and resurgence during the upcoming era alongside other developing countries.
Chairman CBR Abdullah Yousaf, expressed these ideas addressing a representative delegation of the All Pakistan Textile Processing Mills Association (APTPMA).
During the discussion and question-answer intermission APTPMA Chief elaborated his viewpoint vizi-a-viz sales tax refund (other than utility bills). He stated that whereas the textile processing sector had all along been "paying sales tax" , "rather than claiming refunds", they had not been conversant with the procedure, and modalities of refund claims.
Saeed Sheikh further stated that as a sequel to inadequate publicity on part of CBR secretariat, and quite a few technical flaws, some of the member units were not able to file their refund claims along with supportive documents within the stipulated dates. So in the context of S.R.O. No 555 dated 05th June 2006 (Sales Tax Rules), CBR would be well advised to delete the clause ("Prior to July 2006") from Circular dated 28th December 2006m while the last date for filing of supportive documents may not be extended beyond 31st December 2006.
But after deleting the "prior to July 2006" clause, it may be clarified that the supportive documents which could not be filed within sixty (60) days may be filed till 31st December 2006. Chairman CBR, thereupon said that he would look into the matter and try to find a way out. He, however, cautioned that no further extension would be granted beyond 31st December 2006 in any case.
Regarding the issue of zero-rating of sales tax on utility bills, Sheikh Saeed contended that the credentials of quite a few members of APTPMA, especially the newly enrolled have not been entered, or erroneously misdeclared. Chairman CBR stated that collectorates concerned are reviewing the issue and fresh S.R.O.s would be issued on completion of the process.
With regard to the complaint of excessive rate of "protective duty" on import of Caustic Soda, Chairman CBR said that this is a genuine grievance and CBR would take it up with the Caustic Soda Manufacturers Association and devise a workable via media before promulgation of Federal Budget 2007-08.
Members and office-bearers of APTPMA who took part in the question-answer session included, besides Chairman APTPMA, its former Chairman, Mian Shabbir Ahmed, Regional Chairman, Mian Aftab Ahmed, and Mian Ajmal Farooq, Vice Chairman (Central) and Mian Abdul Latif, Former Senior Vice Chairman, while the Chairman CBR was assisted by Collector Sales Tax, Parwez Sultan Rana, Director General Income Tax, Qurban Ali, Collector Custom, Mehboob Saqib , and other senior officials of CBR. Consensus among the participants was that it has been a most objective, pragmatic and meaningful session.
Earlier, Chairman APTPMA, Muhammad Saeed Sheikh, presented his address of welcome to the Chairman CBR wherein he highlighted a number of problems faced by the textile processing sector with regard to Income Tax, Sales Tax and Customs Duty.
In his speech, Chairman CBR reiterated that in the context of national economy, the government is fully cognisant of the importance of the textile industry. Consequently, it has embarked upon an ambitious programme of its reconstruction and earmarked substantial funds for the infrastructure.
Elaborating, he said that besides initiating the mega-projects of Textile Cities, Sales Tax on utility bills has been zero-rated while an amount of Rs 55 billion has been set aside during the preceding five years for dispensation of sales tax refund.
All these measures have been adopted because it has all along been the earnest endeavour of the GoP to keep abreast with our rapidly progressing neighbours like India and China and maintain a status of dignity and honour among the comity of nations. Nonetheless, it is imperative that the traders and industrialists of Pakistan should contribute the smallest chunks of their income to the national exchequer voluntarily whether it is procured through export or industrial production.
Consequently, it has been the earnest endeavour of the government to formulate a fiscal policy through budgetary exercise, which should be "business friendly and investment friendly". He contended that, by way of potential and performance, our industrialist is second to none in the world. He assured the participants of the meeting that their genuine grievances would be redressed expeditiously through tangible corrective measures.