IHC denies concessions under SRO 1125

KARACHI: The Islamabad High Court has dismissed two petitions filed by the importers of polyurethane prepolymer and declined their claim of concessions under SRO 1125/2011.

The petitioners claimed that the importer goods were the raw material for footwear manufacturing and claimed before the Court concessions under SRO 1125/2011 at sales tax of 3.0 percent and income tax of 1.0 percent at import stage under PCT 3909.5000.

The petitioners M/s Prime Brothers and M/s Ahsan Elahi Company are aggrieved of the classification of polyurethane resin under PCT 3208.9000 and also objected levy of sales tax of 17 percent and income tax of 5.5 percent in denial of concessions under the above mentioned SRO.

Justice Noor-ul-Haq Qureshi after detailed deliberation noted that sales tax concessions under SRO 1125/2011 cannot be allowed merely on the ground that a certain imported material is an industrial input.

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