ISLAMABAD: The embattled manufacturing sector has shown its concern over the FBR move to slap 2 percent extra-tax on manufacturers’ non-retail operations under SRO 896 (I)/2013.
According to the manufacturers, the non-retail operations consist of supplies from vendors to vendors and vendors to manufacturers which are ultimately used in making finished goods.
They are of the view that since all these vendors are registered and have been paying their due share of taxes. This additional 2 percent tax will add to their cost which is unfair and will simply add to the plight of manufacturers, they added. They claimed that the manufacturers’ non-retail operations and supplies did not fall in the purview of extra tax and therefore the government should abandon the idea.
Commenting on the issue, former Karachi Chamber of Commerce and Industry (KCCI) president Majyd Aziz pointed out that the issue had been lingering since past three months and the changes introduced in the SRO were now affecting the manufacturers. He urged the FBR to resolve the issue immediately as it only involved a simple notification for clarification.
Meanwhile, the Pakistan Automotive Manufacturers Association Director General stressed that delay in issuance of clarification by the FBR would make the issue more complex as it will result in increased cost exposure to vendors and extra litigation costs, warning that if the matter went to court.
