KARACHI Pakistan Chemical and Dyes Merchants Association (PCDMA) has detected several flaws and anomalies in the amended SRO-283 of the five zero-rated sectors, which is likely to be issued in next few days. According to the said amended SRO, twenty five new additional items will be included which are not a part of five zero-rated sectors and will lead to revenue loss of billions of rupees. Muhammad Haroon Agar, Chairman Pakistan Chemicals & Dyes Merchants Association (PCDMA), in a letter forwarded to the FBR chairman, has protested against 5 per cent sales tax on import stage while stating the contentions that it will lead to possibilities of frauds and revenue loss. He demanded equal level playing field for industrialists and traders to execute their businesses. The letter further states that PCDMA is the genuine representative body which supplies raw materials, chemicals and dyes to the textile and allied industries. The PCDMA holds members over 1300 from all over Pakistan who are taxpayers and registered for income tax and sales tax. In the SRO 283(I) 2011, more than 75 per cent items are essential part of supply chain of 5-zero rated sectors. The PCDMA has learnt about flaws and anomalies in amended SRO draft, such as it is impossible to verify and ensure that items sold to unregistered persons will be used/consumed only in zero-rated sectors because the items included in said SRO are specifically used for export oriented sectors. In the SRO, for goods/items sold to unregistered persons are categorically subject to 5 per cent sales tax, therefore, the clause 13 of SRO should be deleted because in case of selling to unregistered persons, due to the said clause the auditors would have the excessive powers which might cause harassment and lead to corruption. The letter further says that 70 to 80 per cent commercial imports are made for 5 zero-rated sectors and remaining 20 or 30 per cent is consumed by domestic industries whereby only the 5 per cent sales tax should be applied. Consequently, the withholding tax should be maximum 2.5 per cent and the taxes be treated and taken as advance or outpkut taxes being adjustable in the returns. The chairman PCDMA said that the commercial importers would not claim refund of said amount. He also urged that the government besides consulting non-stakeholders/irrelevant person should consult only the genuine stakeholders so that the grievances may be resolved amicably.