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Tag: SITE Association

  • Export orders under threat as gas supply to industries suspended

    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.

  • FBR criticized for delaying sales tax refunds under FASTER module

    FBR criticized for delaying sales tax refunds under FASTER module

    KARACHI: Business community has criticized Federal Board of Revenue (FBR) for delaying release of sales tax refunds under newly launched Fully Automated Sales Tax e-Refunds (FASTER) module.

    Suleman Chawla, President of SITE Association of Industry, while expressing deep concerns over the poor performance of the recently launched Fully Automated Sales Tax e-Refunds (FASTER) module, stated on Friday that FBR claimed of processing payments of Sales Tax Refunds within 72 hours through FASTER module but the ground reality was totally contrary to this claim as many exporters have not received anything.

    He pointed out that many exporters have not received outstanding refunds for July 2019 which was really worrisome and too disappointing for the Business and Industrial Community as the FASTER module was launched with a commitment to release refunds within 72 hours but it was not happening at all, which has intensified the hardships for exporters who are finding it almost impossible to stay afloat due to delays in release of refund claims and rescission of SRO 1125(I)/2011 dated 31.12.2011, which allowed zero-rating of inputs of five export-oriented sectors.

    “It was a matter of grave concern that a system titled FASTER for processing refund claims within 72 hours, has actually made the entire process too messy and cumbersome while the FBR officers in Islamabad were also totally unaware and confused because of the so-called FASTER system hence, it should be remained as SLOWER”, he criticized.

    President SAI said that it has been a month since the first tranche was processed via FASTER module but many exporters have not received funds, creating severe liquidity crunch for the exporters from five export-oriented industries which clearly indicates that FASTER system has failed miserably to improve the situation in fact it has made the refunds process more cumbersome and slower.

    He was fairly optimistic that keeping in view the government’s resolve towards ensuring the Ease of Doing Business, the decision makers would pay attention to this serious issue and order the concerned department to improve FASTER’s performance which would certainly be warmly welcomed by business community of Karachi but also by all other stakeholders from across the country.

    He appealed to the Federal Minister for Finance, Revenue and Economic Affairs, adviser to the Prime Minister on Finance and Chairman, FBR to personally intervene for immediate release of pending claims so that exporters could meet their export contracts.

  • SITE Association hails FBR chairman’s no bank account freezing decision

    SITE Association hails FBR chairman’s no bank account freezing decision

    KARACHI: SITE Association of Trade and Industry on Friday hailed the very first decision by Shabbar Zaidi after assuming the charge as the chairman of Federal Board of Revenue (FBR) regarding curtailing powers of tax officers in recovery cases.

    “First decision taken by the Chairman will restore confidence of tax filers on FBR,” Saleem Parekh, President SAI, said in a statement

    He said that the association was pleased with the balanced approach on handling recoveries taken by the freshly appointed Chairman FBR.

    The condition of the Chairman’s approval before seizing bank accounts would make the process transparent by limiting the discretionary powers of field officers.

    It is expected that the Chairman will devise policies that will channel the full force of FBR on broadening the tax base instead of subjecting the current tax payers to different types of annual audits.

    The chairman must realize that the only way to broaden the tax base is to make the cost of doing business of non-filers more than the cost doing business of filers.

    The current system is heavily in favour of non-filers. A filer is subjected to Income tax audit, sales tax audit, withholding tax audit & audits before issuance of Income tax exemptions u/s 153 and u/s 148 on an annual basis whereas non-filers are allowed to trade, buy cars and properties and travel.

    The energies of FBR will be better spent if the focus is on non-filers who continue to enjoy many privileges with impunity.

    He hoped that a culture of tax collection with transparency, respect and oversight will flourish under the dynamic leadership of Shabbar Zaidi where filers will be considered as partners of FBR instead of adversaries.

  • Pakistan unlikely to get benefit from 2nd phase of China FTA: SITE Association

    Pakistan unlikely to get benefit from 2nd phase of China FTA: SITE Association

    KARACHI: Pakistan may not get benefit from the 2nd phase of Pak China FTA as Chinese imports of $2 trillion are either of raw materials or high-tech equipment.

    “Pakistan does not have the industrial and technical base to produce high-tech equipment such as computers, ICs, telecommunication equipment & automobiles,” Saud Mahmood, Chairman SITE Taxation and Trade Policy, said in a statement on Friday.

    Moreover, he said, exports of minerals, live stock and agricultural products is not accelerated by FTAs as importing countries do not apply duties on raw materials.

    China is known as the supplier of the world with huge current account surpluses with most trading partners.

    After the first phase of PAK China FTA, we had to impose up to 30 percent regulatory duty to save the local industry from closing down.

    Even after the imposition of 30 percent regulatory duty, trade deficit from China is over $15 billion with Pakistan exporting under USD 3bn worth of goods to China, mostly minerals, agricultural products, and livestock.

    In view of the above ground realities, it would be interesting to see in which areas Ministry of Commerce has envisioned growth of Pakistan’s exports to China.

    If exports to China are expected to grow to $6 billion after the 2nd phase of FTA, an item wise break up in which exports are expected to jump should be shared with the industry for their comments.

    In the absence of such a detailed effort duly endorsed by leading chambers, it seems that we are all set to shoot ourselves in the foot again.

  • Industry demands separate gas line to avoid losses

    Industry demands separate gas line to avoid losses

    KARACHI: The business community has demanded separate gas line for industries and CNG stations in order to avoid production losses.

    Saleem Parekh, President, SITE Association of Trade and Industry in a statement on Wednesday said that the common gas line for industries and CNG stations is a ‘hurdle in industrial production’ and also the main cause behind low gas pressure being faced by industries of SITE frequently.

    He said that on the days when CNG stations remains open, the industries face acute low gas pressure which is similar to no gas and badly effects industrial production.

    Hardly 30 percent industries manage to run on low gas pressure due to which, exporters in particular face delays in timely completion of export orders.

    There are approximately 4,000 industries in SITE area, Karachi, out of which 60 percent industries run on gas. As such, the production process of these 60 percent industries stops due to low gas pressure which remains below the required pressure.

    Resultantly, the industries suffer losses of billions due to production losses and damages. They quoted that in other industrial zones, separate gas lines have been laid for industries and CNG stations.

    Therefore, gas line of SITE Area industries should be separated from CNG stations line in order to maintain the gas pressure required to run industries.

    Expressing concern over gas closure for industries on Sundays, they said that on every Sunday, gas remains closed for industries for 24 hours.

    However, gas pressure starts to drop 4-6 hours earlier, much before the time given for closure. The effects of one day gas closure last for more than 36-40 hours which ultimately hits industries.

    The possibilities of increase in unemployment due to closure of industries cannot be ignored in this matter.

    They demanded the Federal Government to direct SSGC to end Sunday gas closure for industries, improve gas load management system and provide gas to industries in required pressure so that industrial production continues without hurdle which is essential to put the country back on the path of economic and industrial development.