KARACHI, Aug 22: Chairman Federal Board of Revenue (FBR) Abdullah Yousuf has assured the members of All Pakistan Textile Processing Mills Association (APTMA) that the amendment made in the SRO 470(I) 2007 will be rescinded.
The APTMA delegation led by Zubair Motiwala in a recent meeting held in Islamabad apprised the FBR chairman of the situation after the amendment made in rule 26(b) of Refunds (Chapter V), depriving the zero-rated sector of refund of input tax arising from sales tax paid on purchases of taxable goods.
The FBR chairman opined that there was no rationale in denying the refund of the input tax to the zero-rated, irrespective of whether the sale of manufactured goods was made to registered or unregistered person.
The delegation pointed out that import duty on pigment thickener had been rationalised, however, the sales tax was charged under the two HS Codes though at separate rates. The factual position was that the product should not attract any sales tax at all and should be zero-rated.
The FBR chairman assured the delegation that it would be addressed and corrected.
The issue of enhanced import duty on viscose and nylon yarns, both not produced/manufactured in the country was an anomaly that needed to be redressed.
Mr Yousuf said the matter would be resolved in the meeting of the Anomaly Committee.
On the issue of refund of one per cent special FED, the delegates were assured that, in view of the action taken on the amendment in SRO 470, the matter will be reviewed by the department and settled favourably.
