Lahore, September 21, 2016 (PPI-OT): The Lahore Chamber of Commerce and Industry has called for immediate revision of SRO 1125(I)/2011 saying that it is hitting the registered suppliers of packaging material hard.
After having meeting with the representatives of All Pakistan Carton Manufacturers Association and Small and Medium Enterprises (SMEs), the LCCI President Sheikh Muhammad Arshad said that SRO 1125(I)/2011 has pushed the registered suppliers to the wall as manufacturers have started to make their purchases from unregistered suppliers or from other countries.
The LCCI President said that most of the packaging industries are supplying packing material to the exporters and are duly registered for sales tax. He said that the denial of input tax/refund to exporters will encourage them to make purchases from un-registered persons so that only 1% tax is required to be withheld, instead of making purchases from the registered manufacturers/suppliers who will charge sales tax @ 17%. He said that the business of registered manufacturers/suppliers of packaging material will, therefore, come to a standstill and they will be forced either to close down or to de-register themselves and go in the un-organized sector.
He said that the problem will be aggravated in view of the fact that most of the large exporters/export houses will obtain DTRE for import or local purchase of various items including packing material. They will import packing material free of customs duty and sales tax under the said scheme and there will be no need for them to make purchases either from registered suppliers or from un-registered suppliers. He said that this will cause loss of local economic activity resulting in huge revenue loss to the national exchequer.
For more information, contact:
Lahore Chamber of Commerce and Industry (LCCI)
Lahore -54000, Pakistan