KARACHI: Federation of Pakistan Chambers of Com­merce and Industry (FPCCI) has identified around 70 anomalies relating to taxes and duties in budget FY24 which will prove counter-productive if not rectified before the passage of the final version of the Finance Bill by the parliament.

Addressing a press conference at the Federation House on Saturday, FPCCI President Irfan Iqbal Sheikh said that the most important anomalies are related to the customs.

For example, section 14-A should be revised as, at present, the business community is facing major problems related to Customs Delay Detention Certi­ficates (CDDCs) on impor­ted goods.

The business community demands that shipping lines and shipping agents should not give importance to the CDDC which is the main reason for the legal deficiency in the relevant regulations.

Another important issue with the customs is concerning the reduction of customs duty on butyl acetate and di-butyl ortho-phthalates in the 5th Schedule, which would affect the domestic industry.

On paper and paper board, the provisions refer to the regulatory duty (RD) enacted in HS.4802, which should be terminated immediately, while withholding tax on raw materials under HS 4810 should be revised.

The government has adjusted customs duty on some items relating to chapters 47 and 48 of the Pakistan Customs Tariff and these taxes need to be revised.

Highlighting the budget anomalies in income tax, Mr Irfan said fleet operators and warehousing logistic associations say that the tax rate has been revised in Section 153 of the Income Tax Ordinance and this rate should be revised again in favour of the industry.

He said it is grossly inappropriate to put more burden on the registered taxpayers and more people should be brought into the tax net to distribute the burden equally.

The existing slab of the ‘super tax’ also needs to be revised downwards which is an undue burden on the business community. The existing rate of withholding tax (WHT) has been increased which covers companies, service sectors and commercial importers and persons having bonus shares — and due to the WHT hike, the business community has been further burdened.

He said anomalies have been detailed in the erstwhile Fata/Pata regions since the time it was implemented. There have been concerns from the business community regarding unfair concessions and their misuse.

The stance of the business community is that smuggling is flourishing due to the misuse of these privileges. This is affecting the industry and trade of other regions of the country.

Published in Dawn, June 18th, 2023