Exclude the product from the ‘third schedule’ of Sales Tax Act or allow fixation of its maximum retail price on the basis of two different zones. PHOTO: FILE
Cement manufacturers have urged the Federal Board of Revenue (FBR) to either exclude the product from the ‘third schedule’ of Sales Tax Act or allow fixation of its maximum retail price on the basis of two different zones if the said procedure must continue in the upcoming budget of 2014-15.
In a letter to the FBR chairman, cement manufacturers said that the dynamics of every province and region are different in Pakistan. Hence, collection of sales tax on the basis of a single MRP across the country is anomalous, which will ultimately force manufacturers to restrict sales only to nearby markets.
This would mean stopping sales to far-flung areas where there are increased chances of a parallel market getting established which will impede FBR’s revenue collection, added the letter.
Published in The Express Tribune, March 2nd, 2014.
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