Chairman, Pakistan Yarn Merchants Association (PYMA), M Iqbal Mandvia and members of the association have urged the chairman Federal Board of Revenue (FBR) and ministry of commerce to withdraw SRO212(1)2013. The FBR has contended that the sprit of the SRO was to have a level playing field for all stakeholders.
However, the SRO clearly discriminates between manufacturers and commercial importers by imposing 3 percent withholding tax on import of raw measles by commercial imports, whereas in the case of import of raw materials by manufactures, the rate of withholding tax is one percent.
Such discrimination will not only lead to the eventual elimination of economic activity conducted by commercials imports, but will also encourage unscrupulous elements ie fake manufacturers, to take advantage of non-uniform tax rate, thereby resulting in huge losses to revenue collection efforts.-PR