KARACHI: President Karachi Customs Association (KCAA) Faisal Mushtaq has expressed his concerns as SRO 1070(I)/2017, which is an amendment to the SRO 1125(I)/2011, has not been incorporated in the weBOC system.
FBR has issued SRO 1070(I)/2017 under which it has reduced sales tax on textile and leather finished goods/articles from 17% (along with 2% value addition sales tax) to 6% sales tax (along with 2% value addition) tax on both import and its subsequent supplies stage.
The SRO has been issued in order to rationalize the rates of finished article of imported textile and leather goods. Prior to this amendment, there was a disparity of sale tax rates on locally manufactured finished articles with imported finished articles of textile and leather made-ups. This disparity has been seriously confronted by EU and other counterpart countries for the last couple of years.
Faisal Mushtaq said scores of consignments had stopped clearance waiting for the reduced rate to be incorporated in the WeBOC system and the importers were bearing demurrage and detention charges. He said they had approached several officers including the Chief Collector South Abdul Rasheed Sheikh.
Mushtaq said chief collector was cooperating completely and trying to help the traders. However, someone in Islamabad was creating this problem due to which SRO 1070(I)/2017 could not be added in the system.
Faisal Mushtaq has demanded of the authorities to immediately incorporate the SRO in the system which was issued on October 23, 2017 so that importers could proceed with their business.