KARACHI: Indenters Association of Pakistan (IAOP) has expressed disappointment over imposing of service sales on indenters in the provincial budget 2016/2017.
In a statement issued on Thursday, IAOP Chairman Khurram Sayed and IP Chairman Saquib Fayyaz Magoon said Indentors are bitterly disappointed that, Sindh government did not removed service tax from indenters in the Provincial budget 2016-2017.
In budget anomalies, they point out that, instead to encourage indenters like other export oriented sectors, Sindh government imposed injustice service tax on indenters in the last year budget. They said that indenters get quantity discount from foreign suppliers and save foreign exchange and then get back this amount as a commission in foreign exchange. “Indenters should be in tax free regime, like other exporters and omit them from domain of provincial government,” they demanded.
“We request the Chief Minister Sindh Qaim Ali Shah to give appointment for meeting enable us to clear our point of view that indenters should not be in regime of service tax, as they are exporter of services to their foreign principals and in return they get commission in shape of precious Foreign Exchange for our country,” they added.
Khurram Sayed and Saquib Fayyaz Magoon said that after our several meetings with Sindh Revenue Board (SRB) in good atmosphere with positive notes, they said. “We were expecting that in this provincial budget 2016-2017 service tax would be removed from Indentors but we wondered that Sindh government kept old status regarding service tax on indenters,” they said.
They further said mostly indenters deals in basic raw material of industries and they are source of quality goods supplying to manufacturing and export sector to ensure smooth production of industries.
They requested to chief minister of Sindh, Provincial Finance Minister and Chairman SRB to consider their one point demand and exempted indenters services from service tax.