Karachi: The business, industrial, and trade community of Pakistan has expressed strong dissatisfaction with the State Bank of Pakistan’s (SBP) decision to keep the policy rate unchanged during its recent Monetary Policy Committee (MPC) meeting.
(more…)Tag: Site Association of Trade and Industry
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Export orders under threat as gas supply to industries suspended
KARACHI: Industrial activities come to a standstill as gas supply was suspended by Sui Southern Gas Company (SSGC). The suspension would affect meeting export orders.
Abdul Hadi, President, Site Association of Industry, while expressing deep concern on Saturday over non-supply of gas to the industries of the site area, said that Sui Southern Gas Company (SSGC) has suspended the supply of gas to the industries.
“As a result, the gas crisis has intensified and production activities have come to a standstill position and many industries have been shut down. He demanded to restore Gas supply to the industries at the required pressure so that production activities can be resumed.”
He appealed to Prime Minister Imran Khan and Federal Minister for Energy Hammad Azhar, to take notice of the non-supply of gas, Abdul Hadi said that the industries of the site area have been facing shortage of gas for a week and now the supply of gas has been suspended.
“The non-supply of gas is affecting production activities, which has led to the closure of several industries. Gas pressure is constantly zero and despite repeated complaints to the SSGC, the gas pressure has not been improved. On the contrary, SSGC has taken the position that it may take another 2 to 3 days to improve the gas pressure, which is an alarm for the fulfilment of export orders”, he pointed out.
SAI chief questioned the SSGC officials that if there is such a situation of gas supply in summer, then what will happen to the gas crisis in winter? Abdul Hadi requested Prime Minister Imran Khan and Federal Minister for Energy Hammad Azhar to issue directives to SSGC to restore gas at required pressure to the industries of the site. Otherwise timely delivery of export orders will not be possible.
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FBR proposed imposing additional sales tax on failure to implement CNIC condition
KARACHI: SITE Association of Industry on Monday proposed the Federal Board of Revenue (FBR) to imposed additional sales tax as the government failed to implement condition of Computerized National Identity Card (CNIC).
Instead of disallowing proportionate input tax for sales made without CNICs, alternate is recommended for sales made without submission of CNIC to increase the further tax at 5 percent of sales till December 31, 2019, 7.5 percent of further sales till March 31, 2020 and further tax at 10 percent of sales till June 30, 2020.
The SITE Association of Industry proposed new formula to end the deadlock between Government and traders on the condition of production of CNIC on sales and purchase of goods by the Federal Board of Revenue.
Chairman of Taxation Committee of the Association Saud Mehmood has suggested that input tax inadmissibility against sales made without CNIC should be replaced with progressive increase in rate of further sales tax.
He said that the FBR has not been able to successfully implement the CNIC condition due to the complex nature of disallowing input against sales made without CNIC which is difficult for sellers as well.
Because of the complex nature of this condition, sales tax registered sellers have made CNIC submission the only option whereas legislation allows for sales without CNIC as well.
Saud further said that in order to make implementation of CNIC submission smooth, SITE Association of Industry strongly recommends that input tax inadmissibility be replaced with progressive increase in further tax. “Progressive increase in further tax will make the transition smooth. Moreover, it will be in line with the existing system of charging further tax of 3 percent of sales made to non-filers,” he added.
SITE Association of Industry believes in the documentation of the economy. When submission of CNIC is mandatory for availing a mobile connection then there is no reason to shy away from submitting CNIC for purchases above PKR 50,000/-.
“We feel that more than the requirement of CNIC, the sudden imposition is one of the causes of the stiff resistance being faced by FBR. A gradual and progressive implementation of further sales tax on sales without CNIC will make the whole process more palatable.”
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Business community wants secrecy of information under assets declaration scheme
KARACHI: Business community has urged Federal Board of Revenue (FBR) to keep information secret under assets declaration scheme in order to ensure confidence of declarants.
Saleem Parekh, Chairman Site Association of Trade and Industry, urged that all the information disclosed must be kept in secret and should not be shared with any other department. “The scheme will only be successful if no questions are asked with regard to the transactions,” he said at an awareness seminar on Asset Declaration Scheme organized at the association.
On the instructions of Chairman FBR Shabbar Zaidi, FBR officials have started awareness campaign in Karachi. In this regard Maqsood Jehangir, Commissioner IR, Large Tax Paying Units (LTU) and Kashif Hafeez (Addl. CIR, Zone 6, CRTO, Karachi) visited SITE Association of Industry which was attended by Executive Committee and large number of industrialists.
Kashif Hafeez gave detailed presentation about Asset Declaration Ordinance 2019 wherein he highlighted the incentives announced by the government that anyone under this scheme can declare their un-declared assets (immovable and moveable) and in this regard all FBR officials would help the business community.
Commissioner informed that under this scheme all information would be kept secret to safeguard the concerns of business community.
He informed that government has received detailed financial information from 26 countries and now it is impossible to hide moveable and immoveable assets. Therefore FBR is encouraging all stakeholders to declare their un-disclosed assets obtained before June 30,Bu 2019.
Saleem Parekh appreciated the presentation and insight knowledge of Commissioner. He said that Commissioner has responded each and every question of the industrialists with clarity which shows his authoritativeness on the subject.
He also appreciated the efforts of government to document the economy and extended his full support on behalf of members of SITE Association of Industry in this regard.