KARACHI, Jan 28: The Working Group for the promotion of investment, constituted by government, on Monday formed four sub-committees on, “Under-invoicing”, “Sales Tax Refund”, “Export Rebate”, and “Industrial Raw Materials” to identify irritants.
In a meeting with the Karachi Chamber of Commerce and Industry (KCCI), Convener of the Working Group, Shahzad Alam said one member each from KCCI and Lahore Chamber of Commerce and Industry (LCCI) will be taken at each sub-committee.
Other members of the Working Group, Ramzan Bhatti, chief sales tax CBR, Mahboob Saqib Khan, controller of valuation, Aftab Anwar Baloch, collector of customs export and Sohail Afzal, collector of sales tax were also present.
The under-invoicing sub-committee is headed by Mahboob Saqib, Sales Tax Refund by Akhtar Naeem (co-convener Sohail Afzal), Export Rebate by Aftab Baloch and Industrial Raw Material is headed by Ramzan Bhatti.
Shahzad Alam said the government was trying to increase the liquidity of the exporters by quick refund and efforts were underway to ensure refund in 48 hours, he added.
He said the proposals could be submitted to the sub-committees by January 31, after which the reports of sub-committees will be submitted to the Working Group to prepare basic document/recommendations to remove irritants and check under-invoicing.
He said the local industry could not compete with the items imported through under-invoicing. He said the sub-committee had to identify which raw materials should be allowed on zero-rated duty without affecting the local manufacturing of that particular raw material. However, it will also study the extent to which the duties on raw material should be reduced, which can not be allowed on zero-rated duties.
