KARACHI: The former General Secretary of Karachi Customs Agents Association (KCAA) Muhammad Yahya in his presentation on the topic ‘SRO regimes and its impact on revenue in Pakistan’ has emphasized on proper check and balance in the issuance of SROs.
He was speaking at a 6-working days mandatory course for Customs agents, organised by the Directorate General of Training & Research (DGTR), Customs. During his presentation, Yahya highlighted the SRO regime, its importance, effects and impact on revenue of Pakistan.
Elaborating the SRO regime, former GS KCAA said that it pertains to a particular act of government to facilitate various types of industries as well as specific imports, adding that concessionary SRO regime consists of notifications which provide concession/exemption of duty taxes.
Describing the importance of SRO, Yahya said that protection to the local industry is really important in our country, as we are still in phase of industrialization and rate of unemployment in our country is much more than our neighbouring countries.
He further said that the settlement of pattern of consumption in various sectors including agriculture, energy, mining, transport & communication, textile, carpets, leather, sports, surgical goods, automotives and other sectors are also imperative for economical growth of the country.
Discussing the effects of SRO regime, Yahya said that it protects the local infant industry from foreign competition, to cut the cost of production, cheap availability of goods and materials in the country and promotes positive change in consumption pattern.
Appraising the impact of SRO regime on country’s revenue, Yahya said that it reduces revenue collection at import stage, as misuse of SRO is mainly due to the loopholes as well as many provisions available therein.
Giving its solution, former GS KCAA said that cheaper import of goods may boost production, which are usually subjected to sales tax and federal excise duty with increased production and related income, the collection of income tax will also increase.
In the conclusion of his presentation, Yahya said that the concessions must be granted under a well sort out scheme backed by all the measures of its misuse.
He further urged the authorities of FBR to scrutinize the loopholes and many provisions prior to its issuance.
