ISLAMABAD: The Federal Board of Revenue (FBR) has given relief to commercial importers by allowing them to pay 2pc income tax instead of 5.5pc due to anomalies of chemicals & dyes raw material, which was included in part 3 (finished goods). Pakistan Chemicals & Dyes Merchants Association (PCDMA) had pointed out in the federal budget 2020-21 that the raw materials of chemicals & dyes were shifted from Part 2 (raw material) to Part 3 (finished goods). As a result, the income tax rate for commercial importers rose sharply from 2% to 5.5%.
In a statement, Amin Yousuf Balgamwala, chairman PCDMA & former director of Karachi Stock Exchange, said that he sought the help of FPCCI president Anjum Nisar to solve these issues which are finished goods. In response, Anjum Nisar contacted senior FBR officials and urged them to remove the anomalies and FBR officials assured to look into the matter.
“FBR has issued a notification after the efforts of Anjum Nisar, according to which the matter of the inclusion of the raw material of chemicals & dyes from Part 2 (raw material) to Part 3 (finished goods) has been handed over to the budget anomalies and until the committee decides, commercial importers will have to pay 2% income tax instead of 5.5%, While under section 81, a pay order of 3.5% has to be submitted which will be returned after the decision is taken. These pay orders will not be cash”, he said.
PCDMA chairman hoped that the FBR’s anomalies committee would reconsider the issue and re-incorporate the raw materials of chemicals & dyes in Part 2 (raw materials) and restore the income tax rate of 2% for commercial importers, which will provide cheap raw materials to the industries.