Auto sector rejects FBR’s data demand

Auto and auto parts manufacturers have asked the Federal Board of Revenue (FBR) not to force companies to submit their data repeatedly as it will only hurt the ease of doing business drive in the country.

Pakistan Automotive Manufacturers Association (Pama) and Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) made the request in separate letters written to FBR Chairman Javed Ghani.

Pama Director General Abdul Waheed Khan, while conveying the response of association members, stated that the procedures specified in SRO 615(1)/2020 were not workable since the data required was already part of FBR’s record.

“Auto sector is a 100% documented sector, hence, forcing companies to submit the data again and again will only add to the bureaucratic hurdles to businesses,” he stated.

“Pama has always supported government’s efforts for the documentation of economy but such rules only hurt the ease of doing business in the country,” the DG said in the letter.

He pointed out that Pama members were monitored by a number of government bodies including the Engineering Development Board (EDB) and FBR at various stages, hence, their complete record was already available with the government.

He suggested a few changes to make the SRO 615(1)/2020 workable and to facilitate the manufacturers. The first suggestion was that the exemption certificates allowed previously should be proposed in SRO 615(1)/2020.

“In Division-II, a high-level committee has been formed to examine applications. We suggest including a time frame for action on each step so that uncertainty and delay on applications may be avoided,” the association suggested.

Also, he added, in Division-III the cumbersome requirement of documentation proposed in Rule 40(E) should be removed as all the required data was already part of FBR’s record and such details may only be required from newly established companies.

Similarly, he said, the work of the committee formed under Division-III should be delegated so that the amount of work could be managed efficiently in the minimum possible time.

Meanwhile, Paapam Chairman M Akram stated in his letter that the association was duly governed under SRO 655(l)/2006 and under strict regulations/controls exercised by the EDB, Ministry of Industries and Web Based One Customs (WeBOC).

“We submit that the entire procedure of verification laid down in the said SRO was already being strictly implemented by the EDB for all auto parts manufacturers,” he said.

“And complete verification of their consumption is carried out and records maintained by them (including synchronising with automotive assembler’s production), in line with the processes laid down in the proposed SRO 6l5,” stated the letter.

Published in The Express Tribune, July 16^th, 2020.

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