KARACHI, June 27: Businessmen and industrialists are not happy with the amendments in the SRO 507 introduced by a new SRO 592(I) 2003. They said despite the new amendments, “a manufacturer generally still cannot supply its products to an unregistered retailer.”

The president, Karachi Chamber of Commerce and Industry (KCCI), Mian Nasser Hyatt Maggo has informed the president FPCCI, Riaz Ahmed Tata that a manufacturer, availing concessions on import of raw materials, generally ‘still cannot supply to an unregistered retailer.’

He termed the amendments in SRO 507 as an eye wash. “The government has miserably failed to register a significant number of retailers and now it wants trade and industry to force the retailers for registration.”

“This obviously is not the job of trade and industry,” he said urging the FPCCI chief to take up the matter with the higher authorities, and seek its (SRO507) immediate withdrawal.

The chairman, Pakistan Electronic Manufacturers Association (PEMA), Sarfarazuddin, informed the chairman Central Board of Revenue (CBR) and Member Sales Tax that the amendments in SRO507 have not in any manner improved the position for the local industry. In fact the SRO507 still continues to threaten the existence of local television industry.

Current ratio of the registered persons under the Sales Tax Act is about 10-15 per cent. To restrict local industry to cater to only 15 per cent market/consumers is a serious blow to it, he added.

He pointed out to the CBR that in the previous year only three per cent of the total sale of television industry was made to registered buyers. The current action of CBR would only promote sales of imported and smuggled TV sets, he added. Sarfarazuddin urged the CBR chief to withdraw the SRO507 immediately.

An official in Writing Instrument Manufacturers Group said that their sales had been restricted to only 30 per cent registered retailers and distributors.

The chairman, Site Association of Industry, Haroon Farooqi said that the affected industries’ representatives would gather at the Federation House on Saturday to discuss the matter with the FPCCI. He expressed the hope that the FPCCI, after hearing their plights, would refer the case to the head of the anomaly committee. “It is a major anomaly and causing problems to at least 40 industries,” he added.

He said the amendments in SRO507 is of temporary nature and things will again reverse after July 1.

Some of the affected industries include writing instrument makers, engineering goods, footware, disposable syringe, electronics, TV sets, printing ink, wool products, textile products, silk products, nylon products, viscose products, cotton yarn, printing plates, ribbon for printers, battery cells, agriculture pesticides, needles, sticker paper, sanitary ware, toilet soaps etc.

The SRO 507, issued on June 7, had prohibited supply of goods manufactured by consuming raw materials, parts, sub-components and components imported under various concessionary notifications to any person who is not registered or enrolled under the Sales Tax Act 1990. If any supply is made, the registered person shall not be entitled to re-claim or deduct input tax in respect thereof.

However, after receiving various representations from the concerned trade associations and individuals companies, the government on June 19, vide SRO 592(I) 2003, made some amendments in SRO 507(I) 2003, allowing manufacturers to claim input tax on supply of locally manufactured non-taxable goods to un- registered persons. The SRO 507 would only be applicable on goods, which were manufactured from raw materials, parts, sub-components and components whose bills of entry filed on or after July 1, 2003. This means that the restriction of SRO507 would come on supply of goods from August.