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FBR asked to consider tax-related proposals of engineering industry

FBR asked to consider tax-related proposals of engineering industry

ISLAMABAD: The country’s engineering industry has urged the Federal Board of Revenue (FBR) to consider its tax-related proposals in the federal budget 2018-19.

The National Assembly Standing Committee on Industries and Production has been informed that the budget exercise which should have been concluded in January 2018 was so delayed that in fact proposals were received by FBR on April 13, 2018 at 4 p.m. when FBR has already completed its work.

“While the naivety of EDB acting CEO in sending proposals for the federal budget to FBR a week ago, two months late from the deadline, implies that it is not necessary for FBR to examine the concessions requested by the engineering industry to survive in the presence of FTA’s in place which especially target the growth of the local industry,” said one EDB Board member.

The proposals submitted include addition to Sales Tax Act 1990 where a small modification will not allow sales tax paid on imported machinery which is made locally to be adjusted as input tax instantly providing an incentive to buyers to switch to local production. The industry has proposed restoration of concessions on imported raw materials and components as earlier available in SRO 565 as they were well justified in view of tariff under FTA’s for similar machinery.