KARACHI: Citing massive misuse of concessions that have been causing severe blow to the national exchequer, Pakistan Economy Forum (PEF) proposed rectification of SROs- 1125(I), 565 and 575 to flourish economy. The forum through its proposals advocated traders’ problems and also suggested their viable solutions. The PEF pointed out that all SROs, wherein exemption or relief to any industry had been granted, should be rectified and the minimum criteria for registration as manufacturer or industry may be elaborated to discourage the malpractices.
It stressed that manufacturing capacity should be examined prior to extending tax benefits through SROs, adding that if any manufacturer took benefit under SRO 565 or SRO 575 at import stage, Customs department should ensure that the unit must have some manufacturing capacity as there were hundreds of cases where SROs were misused by ghost industrial units.
PEF said that Acitic & Hydraid were contraband items and had also been included in control list of narcotics, as there were used for refining heroine but Customs department had granted special permission to Pharma sector for their imports. It said that this import permission should be given after proper examination of its usage in medicine manufacturing and added that regularisation of clearance of goods should be made mandatory on production of certificate of origin (recognised as international best practices for clearance of goods from Customs) to eliminate the menace of invoicing issue.
The PEF claimed that SRO 1125, SRO 575(I) and SRO 565(I) were being misused, causing huge revenue losses to the exchequer in all the five zero-rated sectors. To rectify these SROs, it is very important to discuss the reasons, causes and the areas of interest as well as its beneficiaries as it has cost billions of rupees to the economy.
