FBR restores 2pc income tax on chemicals, dyes raw materials
KARACHI: The Federal Board of Revenue (FBR) has met the long-standing demand of the Pakistan Chemicals & Dyes Merchants’ Association (PCDMA) by removing chemicals & dyes raw materials from part 3 (finished goods) and put now in part 2 (raw materials).
According to a press release, in this regard, SRO 1240 has also been issued under which the previous rate of 2pc income tax for commercial importers has been allowed.
In a statement, PCDMA Chairman Mirza Nadeem Baig said that in the federal budget 2020-21, the raw material of chemicals and dyes was mistakenly shifted from part 2 (raw material) schedule to part 3 (finished goods) schedule due to this, the income tax rate for commercial importers was increased from 2pc to 5.5pc.
"PCDMA informed the FBR's anomalies committee that raw materials could not be included in the finished goods, after which the anomalies committee allow to pay 2pc income tax instead of 5.5pc, while under section 81, a pay order of 3.5pc has to be submitted which will be returned after the decision is taken", he mentioned.
Mirza Nadeem Baig thanked FBR officials, former Chairman PCDMA Amin Yousuf Balgamwala, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Anjum Nisar, Nasir Hayat Magoon, Saqib Fayyaz Magoon and Nasir Fateh Kukda for resolving this important issue of commercial importers.
Chairman PCDMA further stated that with the issuance of SRO, commercial importers will be able to pay 2pc income tax instead of 5.5pc and also start getting back the submitted 3.5pc pay orders under section 81. In this regard, PCDMA members should provide the pay orders details so that association can play a role in refunding it. - PPI