KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Wednesday urged the tax authorities to expand the list of raw material for purpose of reduced income tax rate at import stage.
FPCCI President Mian Anjum Nisar while reacting to SRO 1240(I)/2020 dated November 20, 2020 stated that through this notification a very few number of raw material had been added to 12th Schedule for the purpose of reduced income tax rate at 2 percent at import stage.
The Federal Board of Revenue (FBR) has allowed a list of industrial raw materials for benefits under 12 Schedule.
The anomalies committee of FBR declared very few raw materials not to be included in the finished goods and allowed to pay 2 percent income tax instead of 5.5 percent this of course resolves an important issue of commercial importers but there is still a long list of raw materials to be considered the same way.
The FPCCI has been emphasizing for the removal of duties / taxes on the industrial raw materials. However, the SRO 1240(1)/2020 dated 20-11-2020 cover a limited item that does not support industry, while there is an exhaustive list of industrial raw materials already contained in rescinded SRO 1125(1)/2011 dated 31-12-2011.
In order to further facilitate the industry there is an immediate need to revise the list of industrial raw materials as per SRO 1240(1)/2020 dated 20″ November, 2020.
FPCCI president strongly recommends addressing the grievances of the industry at the earliest and resolving the issues being faced by the industry through amendments and inclusion of all raw materials in the said SRO.