Karachi : Chairman Pakistan Tanners Association, Mr. Hamid A. Zahur expressed high hopes for an export friendly budget in order to be on the right path to acheive USD 2.0billion exports under the URAAN PAKISTAN program.
In its budget proposals, PTA has requested to keep the export sector under the original Fixed Tax Regime, but to increase the turnover tax from 1% to 1.5% in order to increase government revenue. In order to avoid unnecessary harassment by the Tax men at the FBR, he urged not to bring the export sector under the final tax regime.
It is learnt from media news that the EFS registered companies will have to pay sales tax on the import of raw materials from the next budget. Chairman Zahur strongly opposed this step by the FBR/MOF as this step will totally negate the basic principal of no duty, no drawback under which the EFS was originally developed. One wrong has been done last year by imposing sales tax on domestic sales under EFS and it will be a second wrong to impose sales tax on import of raw material under the EFS, going forward. This will lead to a cash flow crunch, defeat the very purpose of the EFS and be detrimental in increasing the exports any further. He urged the government to bring EFS back to its original form as on 30th June 2024, whereby purchase of domestic or imported raw materials under EFS are exempt from any duties or taxes.
He appreciated the recent news about reduction of import duties in the next budget to make our export sector competitive and urged the government to include a brief list of materials, as submitted by the PTA, from the current negative list to positive list in order to claim the sales tax amount on such inputs.
He thanked Secretary MNSFR, Mr.Waseem Chaudhary for helping resolve a long pending matter of requirement of Animal Quarantine Certificate on Import of raw materials and export of finished and semi finished leathers.
With regards to the requirement of Licence for import, storage and consumption of Industrial Raw Materials under the garb of Dangerous Petroleum Products, he thanked Mr.Ali Pervaiz Malik for granting an extension on this requirement. He also thanked Mr.Atif Ikram, President FPCCI and Mr.Saqib Fayyaz Magoon, SVP FPCCI who have been working very closely with PTA and other industry stakeholders for the resolution of this matter.
While strongly opposing the recent Amendments to the Tax Ordinance-2025, he thanked Mr.Haroon Akhter, SAPM to the MOIP for giving his time to listen to the concerns of the business community and to help ease them going forward.
Mr. Hamid Zahur thanked the SIFC for taking the initiative to revive Pakistan’s economy and increase its exports, as PTA has been working with the SIFC on various export led matters.
Chairman PTA congratulated the nation and particularly the Armed Forces of Pakistan on the recent success of the Operation Bunyan Um Marsoos. On his exemplary leadership qualities, Chairman PTA congratulated General Syed Asim Munir on being awarded the title of Field Marshall and wished him all the best in leading the Armed Forces of Pakistan to serve and protect the country.
