KARACHI: President Federation of Pakistan Chambers of Commerce & Industry (FPCCI) Anjum Nisar has expressed concern over anomalies in the federal budget 2020-21 and assured commercial importers to raise voice in front of policymakers.
During a meeting with Amin Yousuf Balgamwala, chairman, Pakistan Chemicals & Dyes Merchants Association (PCDMA), he expressed deep concern over the inclusion of chemicals and dyes raw materials in finished goods category of the Commerce Export List (CCL).
FPCCI president demanded chairman Federal Board of Revenue (FBR) Javed Ghani to restore two percent income tax on commercial importers and withdraw the decision to increase the income tax rate to 5.5 percent so that the industries can get cheap raw material or else the production cost of industries will increase significantly.
President FPCCI had a detailed discussion with chairman PCDMA on budget anomalies and talked on phone call with FBR officials. He requested to arrange an online meeting with FBR chairman or a senior member to find solution to the problems facing commercial importers.
FPCCI President also assured to solve the issue of valuation ruling of imported goods, which has not been revised for many years, and stressed that customs officials must revise the valuation ruling in 90 days according to the prices available in the international markets to protect commercial importers.
PCDMA chairman pointed out that in the budget 2020-21, raw materials of chemicals an dyes have been included in Part 2 to Part 3 i.e. finished goods and the income tax has risen from two percent to 5.5 percent resulting in losses.
He said the move will make industrial raw materials more expensive which will increase production costs and exporters will be unable to compete in global markets.
Chairman PCDMA further said that the prices of imported items in valuation guidelines of the Customs Department are not in line with the prices available in the international market, causing huge financial loss to the importers while industries are also facing higher production cost due to high cost of raw materials.
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