Amin Yousuf Balgamwala, chairman PCDMA & former director of Karachi Stock Exchange has expressed reservations over non-removal of budget anomalies by ignoring PCDMA’s recommendations and requested for a review from new chairman FBR Javed Ghani.
In a statement, chairman PCDMA demanded to restore 2pc income tax on commercial importers and withdraw the decision to increase the income tax rate to 5.5pc.
“No importance was given by the FBR anomalies committee while the advisor to the Prime Minister on trade & investment Abdul Razzaq Dawood also did not play his role as a result demurrage & detention Charges are being imposed on imported goods at the ports”, he added.
He said that the PCDMA had pointed out in the proposals sent to the budget anomalies committee that in the federal budget for the financial year 2020-21, many raw materials of chemicals & dyes have been included in part2 to part3 i.e. finished goods and the income tax rate has gone up from 2pc to 5.5pc, which is not acceptable for commercial importers of raw materials.
Chairman PCDMA further said that commercial importers import raw materials for industries especially textile & leather industry, also playing an important role in maintaining the production activities while industries also import raw materials and levied only one pc income tax but the income tax rate for commercial importers is 5.5pc. Due to this injustice commercial importers will be completely excluded from the import business as a result it will not be possible to supply raw materials as per the demand of the industries while raw materials will also become more expensive which will lead to increase in production cost.
“The government should provide a level playing field to industrial & commercial importers and equal taxes should be levied as both are supplying raw materials to the industries”, he demanded.
Amin Balgamwala also demanded to include the raw materials of chemicals & dyes in part2 instead of part3. He requested the new chairman FBR Javed Ghani to hold an online meeting with the commercial importers or arrange a meeting with the PCDMA delegation for discussion about the excessive taxes.
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