March 28, 2013
According to the SRO No 212(1)/2013 dated 14th March 2013, Commercial Importers of Raw Cotton are required to pay additional 2 percent Sales Tax on this import as per condition (9C) of FBR's SRO No 212(1)/2013 dated 14.03.2013, whilst the Textile Industry is exempted from such tax on its import of same item and nomenclature Raw Cotton which is clear discrimination.
Such discrimination greatly hurt commercial importers/ traders of raw cotton and their activities are affected by way of levy of such Sales Tax as it enhanced their overall cost, rendered them uncompetitive and eventually eliminated from the trade of imported raw cotton as their landed cost has been increased compared to imports by the spinning mills manufacturers. It may also be stated that the weaker sections of the Textile Industry are also affected as they rely on commercial importers to import and finance them as they don't have credit lines to import directly.
The commercial importers/ traders of raw cotton are, therefore, of the views that the Government should ensure a level playing field both to the commercial importers/traders of raw cotton and the industry as fair play demands that no sector should be given any preferential treatment. The tariff on import of raw cotton should be same both for the commercial importers/traders of raw cotton and the textile industry.
In view of the above it is requested that matter may be taken up with the Government to look into it and 2 percent additional Sales Tax chargeable from the commercial importers/traders on import of raw cotton should be waived in order to provide level playing field both to the commercial importers/traders and the textile industry. (Source: Business Recorder)