June 19, 2003	Thursday	Rabi-us-Sani 18, 1424

KARACHI, June 18: The chairman, SITE Association of Industry, Haroon Farooqi has demanded withdrawal of SRO 479(1)/2003 issued on June 7, 2003.

He said under the SRO, tax concessions, available on import of machinery or spares for the expansion, balancing, modernization and replacement of existing units, were withdrawn.

He said on the demand of the trade bodies, the then government had exempted, vide SRO 554(1)/98 dated 12th June 1998, such machinery or spares from the customs-duties leviable under the First Schedule to the Customs Act 1969 (IV of 1969), and sales tax chargeable thereon under the said Act, as are not manufactured locally, imported for setting up a manufacturing unit or for the expansion, balancing, modernization and replacement of existing units in bond subject to the conditions contained in the said SRO.

He said that the government decision would hamper day to day replacement of spare parts besides resulting in deterioration of export products’ quality. It would also negate government policies of providing incentives to export-oriented industries in order to maintain competitiveness of exports.

Haroon said that the government should have taken the trade bodies into confidence before withdrawing the concession.

Site chief urged the federal finance minister, Shaukat Aziz to look into the matter.