ISLAMABAD: Federal Board of Revenue Chairman Dr Mohammad Irshad has rejected the demand of zero rating on import of powder milk by dairy industry but said that a mechanism could be worked out to reach an equitable solution.
Dr Irshad was briefing the Senate Finance Committee which met under the chairmanship of Senator Saleem Mandviwala at Parliament House. In the committee meeting, representatives of the dairy industry, cane industry, food industry, stationery industry and the cable manufacturing industry discussed the problems in details. Representatives of cane industry said that there was only one company in the country and they had to pay heavy duty on the import of raw material.
They suggested the duty on import of raw material should be decreased and promote the local industry. Dairy industry representatives told the committee there are 4,000 milk collection centers in the country and their profit rate is very low. The business of packing milk is going down and if government did not announce relief for dairy industry, it is expected that many centers and factories will be closed down.
They demanded that zero duty to be imposed on the import of the Milk Powder. Milk packaging companies providing healthy and hygienic milk. They offered that government may check quality of our milk and check can be made from Dutch companies. Representatives of Stationery industries told committee that industries of making pencil, rubber and stationery is facing losses.
They told committee that recently K Electric has imported cable of Rs 4 billion. The committee directed FBR to give every possible relief to the cable industry. There are four ghee mills in FATA and PATA which sell their ghee in KPK.
The ghee industry in FATA and PATA has eight rupees per liters tax exemptions, we cannot compete with them in any way or be given discounts. The committee directed the FBR and representatives of Ministry of Law and Justice that they jointly find out the solution of the problem. Representatives of food industry recommended that the same facilities and privileges are given to the local investors which are being given to the Chinese investors on the basis of CPEC agreement.
The committee approved the proposal and directed to add the same in the budget recommendations. Senator Talha Mehmood said that Price Control Authority must be strengthened for the provision of basic services at reasonable prices to consumers. Meeting of Senate Finance committee attended by Senator Ilyas Ahmed Bilour, Talha Mehmood, Mohsin Khan Leghari, Osman Saifullah Khan, Mohsin Aziz Ali Agha, Chairman FBR Dr. Mohammad Irshad , Member IR policy FBR Dr. Mohammad Iqbal , Member Customs Zahid Khohar, Joint secretary Ministry of law and other high officials.
