Pakistan Chemicals and Dyes Merchants Association’s budget proposal for 2016-17

Karachi, May 24, 2016 (PPI-OT): PCDMA has requested to Federal Minister for Finance Ishaq Dar to remove the differences between Industrial and commercial importers and wants that same level field should be provided for doing business for Commercial and amp; Industrial Importers. PCDMA said more taxes for imports of raw material for commercial importers is injustice and taxes should be same for both type of importers.

Chairman PCDMA Khawaja Arif Kapoor has said in budget proposal for 2016-17, which sent to Federal Minister for finance that export industries play a vital role in industrial and financial growth, and Commercial importers are back bone for uninterrupted financial activities for export oriented industries specially textile, leather and other industries.

He further said that mostly companies of PCDMA consist of commercial importers of raw material, industrial chemical, dyes which provide raw material for in time completion of exporting order. Commercial importer pay 6% advance income tax which also non refundable while industrial importers pay 5.5% advance income tax, Which is refundable and the commercial importers pays 17% sales tax , in addition 3% value addition tax, while the industrial does not pay any value addition tax.

He further pointed in Budget proposal that commercial importers has pays 2% of total amount for sale of goods to non registered person and in this way commercial importers has pay 11% tax, While industrial importers pay only 5.5%, Due to this wide differences of taxes the commercial importers faced very hard to run the import activities because industries importing much more raw material due to less tax and sale in local market in less price and the commercial importer faced financial losses, thats why the tax should be 5% for both sides and addition sales tax should be 1% instead of 2% and this move will end the flying invoices and Government can generate the revenue.

In Budget Proposal, Chairman PCDMA has made request to revise the custom tariff and make it 5% and also make 5% duty of disperse dyes and reactive dyes which used in exporting textile industries, without dyestuff the value added product of textile cannot be made. The product came under chapter 27-55, the tax for industrial raw material should be same for all importers and in this way exporting activity will be better and at the same time the importing activity will also boost.

For more information, contact:
Syed Shakil Ahmed
Secretary General
Pakistan Chemicals and Dyes Merchants Association (PCDMA)
Chemical and Dye House, Rambharti Street,
Jodia Bazaar, Karachi-74000
Tel: +92-21-32432752, +92-21-32439124
Fax: +92-21-32430117