Sales tax reduction for surgical sector demanded

12 Jul, 2007

Chairman Surgical Instrument Manufacturers Association of Pakistan (Simap) Aamir Riaz Bhinder has said the President and Prime Minister of Pakistan are taking revolutionary and commendable steps to increase the exports of Pakistan and to nurture the export culture of this country.
However, the federal board of revenue is creating problems for the exporters by issuing complex and confusing SROs. Talking to media persons on Wednesday here he quoted the examples of recently issued SROs 509 and 644. He said that the government announced reduction of sales tax from 20 percent to 15 percent on surgical machinery and raw material in federal budget 2007-08.
However, according to recently issued SRO 644 this ratio is fixed at 17.5 percent instead of 15 percent. Aamir Bhinder further said that stainless steel, used in surgical goods manufacturing, has not been included in zero rated sales tax regime as per SRO 509.
Chairman Surgical Association said that the surgical industry had demanded a complete ban on exports of surgical forging and semi finished surgical instruments or a 100 percent duty on export of such items; so that these items could be finished within the country and exported at good prices. He demanded that FBR should adopt export-oriented policies that could supplement the national export cause.

Read Comments