LAHORE - The Pakistan Industrial & Traders Associations Front (PIAF) has expressed disappointment over abolishing final tax regime (FTR) for importers of raw materials and termed the imposition of minimum tax at 6 percent as injustice to them.

In a statement, PIAF chairman Irfan Iqbal Sheikh and vice chairman Shahzeb Akram demanded restoration of FTR and declared six percent withholding tax as minimum as injustice. In an appeal to caretaker prime minister, chairman PIAF said the commercial importers were expecting that the government would withdraw the amendments before finalising the budget 2018/2019.

He said commercial importers of raw materials were playing key role in country’s exports as those were important source for providing raw material for manufacturing sector. They provide raw material to textile sector so they honour export orders in-time. He said that there should not be same treatment between raw material and commercial importers because raw material importers made foreign purchases for industry and any increase in taxes would translate to higher tax on industry.

He said that industry was already facing higher cost in the shape of utility and higher value imported raw material. Therefore, the difference between raw material importers and industrial importers should be eliminated for reducing cost for industrial units.

He also demanded the government besides restoring the FTR the raw material importers should be exempted from audit because audit opened the doors for corruption.  He said that the imposition of three percent further sales tax would also promote flying invoices and the government would lose significant revenue.