KARACHI, July 14: Federation of Pakistan Chambers of Commerce and Industry president Riaz Ahmed Tata has again requested the government to rescind the SRO 507 (1), 2003, amended by SRO 592(1), 2003.

“If this SRO is not rescinded immediately, it will lead to shrinkage of sales due to the restriction on sale to any person who is not registered under the Sales Tax Act,” he said in a letter sent to Finance Minister Shaukat Aziz on July 12.

The concessionary imports are primarily made to provide cushion between tariff rates on import of raw materials and finished goods produced from these concessionary rates, and normal rates on import of similar goods are very low due to rising input costs under other heads and have already put the domestic industry in a disadvantageous position to face the cost competition against the import of similar goods, he added.

In fact the concessionary imports are due to non-rationalization of tariffs for import of raw materials, sub-components and components, which are not locally manufactured or have to be deleted as per deletion programmes. The concessionary imports are to help the domestic manufacturing of goods to take share of the markets against import of similar goods.

The FPCCI chief said sales tax registration and revenue were showing progress and with the passage of time increase in the sales tax registration would automatically correct the situation. However, the present requirement to do the sales with only registered persons will certainly reduce the sales.

Mr Tata said the discrimination between policies for domestic manufactured goods and for import of similar products would be favourable to imports of finished goods as there was no restriction on their sales to non-registered persons.