Plastic manufacturers demand final tax regime for commercial importers


KARACHI: Pakistan Plastic Manufacturers Association (PPMA) has strongly opposed bringing commercial importers into minimum tax regime and demanded of restoring final tax regime.
Zakaria Usman, Chairman, PPMA while criticizing the budget 2018/2019 for unfriendly for taxpayers, said bringing commercial importers into minimum tax regime from Fix Tax Regime (FTR) was unjust. “We are of the strong view that the current rate advance income tax is very high as our raw material is of high value commodity and a huge amount is already paid at import stage,” Zakaria Usman said.
In a statement PPMA expressed concerns over proposed changes in the budget saying this will badly affect the plastic sector.
PPMA urged Finance Minister Dr. Miftah Ismail and Federal Board of Revenue (FBR) to withdraw this proposal of Minimum Tax u/s 148 of Income Tax Ordinance, 2001 as it is already heavily taxed and retain commercial importers in the FTR.
Chairman PPMA said observed that as a matter of fact government failed to register wholesalers and retailers in bringing them into tax net. Enhancement of further tax from 2 to 3 percent will discourage the honest tax payer and incentivize the tax evaders who are already out of tax net.
Zakaria Usman also urged government and tax authorities to withdraw enhancement of 1 percent further tax.