Decision to exclude packing material from sates tax refund claim regretted

Salim Ahmed

Lahore—The Pakistan Industrial & Traders Associations Front (PIAF) has expressed its concern over the government’s decision to exclude the ‘Sales Tax refund claim’ on packing material while allowing zero-rated regime to the five export sectors.
While meeting with a delegation of Packing Industry at his office, Mian Anjum Nisar said that The government should withdraw the additional notification No. 491(I)2016 in the relevant notification No. 1125 (I) 2011 under which the government has abolished the tax credit facility on packing material. The packaging is one of the main costs of the export industry and its exclusion from the zero-rated regime is share injustice not only to the packaging sector but also the five export sectors, as they would have to pay tax on packing raw material which is illogical.
The PIAF patron in-chief Mian Anjum Nisar, said that after this notification the five zero-rated exporting industries will avoid purchasing of packing material from the local industry owing to taxation and will import the raw material under the DTRE facility without paying any duty. The local packaging industry, consisting of mostly SMEs, fully documented and registered with the FBR and providing employment to hundreds of thousands, will be destroyed.

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