KARACHI : Members of Pakistan Chemical and Dyes Merchant Association (PCDMA) vehemently rejected the 14 percent GST imposed on services of indenters by Sindh government and demanded its immediate withdrawal .
An emergency meeting was held at PCDMA headed by Chairman PCDMA Haroon Nisar Numberdar to discuss the issue. They termed the tax as unjustified and decided not to accept it at any cost. Members of PCDMA expressed their concerns over imposition of unjust sales tax imposed on indenter services by Sindh Government.
Speaking on the occasion, Chairman PCDMA Haroon Nisar Numberdar said that commercial importers import various raw materials and supply it to industries to keep their wheels running and in this process indenters play an important role. The commercial importers obtain services of indenters to negotiate deal for import of raw material from foreign suppliers.
He also mentioned that indenters work on a very low rate of commission and face fierce competition. They negotiate with foreign suppliers for the most competitive prices of raw materials and other products at a very low commission. The Sindh government should help and facilitate the business community instead of imposing such levies and taxes on this important segment of business,” he added. He said that the indenters were engaged in export of service to foreign principals and WHT to the federal govt on such export earnings.
“The earning of indenting agents is considered as export earnings which do not come under the purview of service tax by the province,” he added.