PIAF Demands Inclusion Of Packing Material In Zero-rating

PIAF demands inclusion of packing material in zero-rating

LAHORE,(Pakistan Point News - APP - 1st Augst,2016) : Pakistan Industrial & Traders Associations Front (PIAF) on Monday expressed concern over zero-rated regime granted to five export sectors, as it does not include 'Sales Tax refund claim' on packing material. In a meeting with Packing Industry delegation here, the PIAF patron in-chief Mian Anjum Nisar demanded that the authorities concerned to withdraw additional notification No. 491(I)2016 in the relevant notification No.

1125 (I) 2011 under which the government had abolished tax credit facility on packing material. He cited, "Packaging is one of the main costs of export industry and its exclusion from zero-rated regime is unjustified not only for packaging sector but also for the five export sectors, as they will have to pay tax on packing raw material." Mian Anjum said that after this notification, the zero-rated exporting industries would avoid purchase of packing material from local industry owing to taxation and import the raw material under the DTRE (Duty and Tax Remission for Export) facility without paying any duty.

The local packaging industry, consisting of mostly small and medium enterprises (SMEs), fully documented and registered with Federal board of Revenue and providing employment to hundreds of thousands individuals, would destroy. The government either should include Sales Tax refund claim facility on packing raw material in zero-rated regime or exclude duty-free packing material import facility under DTRE scheme to save the local industry from shutdown. The PIAF appealed to the authorities concerned to amend the additional notification No. 491(I) 2016 in the relevant notification No. 1125 (I) 2011 without any delay.