Traders say no to revised FBR law

ISLAMABAD: The Mirpur Chamber of Commerce and Industry (MCCI) and the business community of Azad Jammu and Kashmir (AJK) have urged the Pakistan government to immediately withdraw recent amendments made by the Federal Board of Revenue (FBR) in the tax laws for AJK.

MCCI President Chaudhry Allah Ditta sought immediate relief for the survival of the local industries.

The business fraternity feared a complete collapse of the business and industrial sector in the tax-exempted territory of AJK; following the promulgation of a statutory regulatory order (SRO) by the FBR, imposing sales tax on the supplies of taxable goods brought from the tax-exempted areas into taxable areas, including the AJK.

The businessmen said the SRO will undermine the industrial progress and socioeconomic growth in the state. With the SRO, issued on January 26, the FBR had added “Chapter X-A Supply From Tax Exempt Areas Application” in the Sales Tax Rules, 2006 and said that the provisions of the chapter would apply to the supplies of taxable goods brought from the tax-exempted areas into taxable areas.

Talking to newsmen, the local business community leaders said the AJK state was already lacking industries and required infrastructure in the industrial areas due to its particular geographical layout and the lack of resources.

“We strongly condemn this step and request the government of Pakistan to immediately intervene and withdraw the amendment in the tax laws,” they said.

“After investments in the industrial sector, the AJK government has developed industrial estates in various places, particularly in Mirpur and Bhimbher, offering incentives, including tax exemptions, for the newly-established industries with prime focus to boost the industrial activity. These industrial units have not only provided the employment opportunities for the skilled and unskilled manpower but also attractively contributed to the government exchequer in the form of due taxes.”