Raw material importers express disappointment over abolishing FTR

KARACHI: The importers of raw materials have expressed disappointment over abolishing final tax regime (FTR) and termed the imposition of minimum tax at six percent as injustice to them.
In a statement on Wednesday, Saqib Fayyaz Maggo, former vice president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) demanded restoration of FTR and declared six percent withholding tax as minimum as injustice.
In an appeal to prime minister and the finance minister, he said the importers were expecting that the government would withdraw the amendments before finalizing the budget 2018/2019.
Former FPCCI vice president said importers of raw materials were playing key role in country’s exports as those were important source for providing raw material for manufacturing sector.
They provide raw material to textile sector so they honor export orders in-time. He said that there should not be same treatment between raw material and commercial importers because raw material importers made foreign purchases for industry and any increase in taxes would translate to higher tax on industry.
Fayyaz Maggo said that industry was already facing higher cost in the shape of utility and higher value imported raw material. Therefore, the difference between raw material importers and industrial importers should be eliminated for reducing cost for industrial units.
He also demanded the government besides restoring the FTR the raw material importers should be exempted from audit because audit opened the doors for corruption.
Former FPCCI vice president said that the imposition of three percent further sales tax would also promote flying invoices and the government would lose significant revenue.

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