The Machinery Traders Association (MTA) has criticised the Federal Board of Revenue (FBR) for increasing taxes on used machinery and equipment and said nobody would be able to buy such machinery, which would affect national economy.
In a statement on Friday, office-bearers of the association said the hike would affect import of used machinery and importers were already bringing containers via Dubai and Singapore to save their business.
MTA Chairman Chaudhry Abdul Jabbar, along with association’s President Ghulam Mustafa, said that the Federal Board of Revenue had omitted clauses exempting their businesses from some taxes and instead increased taxes on used machinery.
He said that previously, importers were paying Rs196,441 for a 24-ton container, but after issuance of new circulars, they would pay Rs961,692.
Jabbar explained that due to the new tax schedule, importers would pay one per cent income tax, one per cent federal excise duty, 17 per cent sales tax and two per cent additional tax, among others, which include a 15 per cent flood tax on income.
Published in The Express Tribune, April 2nd, 2011.
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