Latest news with #PCDMA
Business Recorder
05-05-2025
- Business
- Business Recorder
Traders demand withdrawal of new tax ordinance
KARACHI: Business and industrial community has demanded immediate withdrawal of the Ordinance and called upon the government to convene parliamentary debate with participation from elected representatives and industry stakeholders and address the growing anxiety within the business community, warning that failure to do so will have severe negative repercussions on the economy. President Karachi Chamber of Commerce and Industry (KCCI) Muhammad Jawed Bilwani, while expressing grave concern over the recently promulgated Tax Laws (Amendment) Ordinance, 2025, stated that this Ordinance, issued without due consultation with stakeholders and in the absence of parliamentary debate, poses severe implications for the business community and rule of law. Bilwani strongly objected to the introduction of Sections 138 (3A) and 140 (6A) of the Income Tax Ordinance, which override judgments of superior courts and make disputed tax liabilities immediately recoverable, even when relief has been granted by judicial forums. This directly undermines the sanctity of court decisions, erodes taxpayers' constitutional right to due process, and promotes a coercive tax regime. Furthermore, he said the insertion of Section 175C, allowing Inland Revenue officers to be posted at business premises under vague conditions, breaches privacy and creates an environment of harassment and intimidation. The power to place officials within private enterprises, without transparent criteria or judicial oversight, threatens operational independence and sends a chilling message to investors and entrepreneurs, he added. He was of the view that the amendments to the Federal Excise Act, 2005, granting wide powers for enforcement and deputation of federal or provincial officers for monitoring, exacerbate this intrusion. The inclusion of loosely defined offences such as 'affixing counterfeit tax stamps' leaves room for arbitrary interpretation and misuse. President KCCI demanded immediate withdrawal of the Ordinance and called upon the government to convene parliamentary debate with participation from elected representatives and industry stakeholders. 'We reiterate our commitment to fair taxation and documentation of the economy but reject any legislative measure that bypasses due process and threatens legitimate businesses under the pretext of enforcement.' He urged the President and the Ministry of Law and Justice to uphold constitutional principles and engage in dialogue rather than promulgating authoritarian ordinances that risk damaging Pakistan's already fragile business climate. The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has expressed deep concern over the implementation of the Income Tax Laws (Amendment) Ordinance 2025, describing it as a harsh and unjust measure. PCDMA has appealed to the President of Pakistan, Asif Ali Zardari, and the Ministry of Law & Justice to withdraw the ordinance and address the growing anxiety within the business community, warning that failure to do so will have severe negative repercussions on the economy. PCDMA Chairman Salim Valimuhammad and Danish Saleem, Advisor to the Subcommittee for Sales Tax and Income Tax, highlighted that the ordinance was issued without consultation with stakeholders and without holding a parliamentary debate on this critical legislation. This has not only shaken the confidence of the business community but has also undermined the supremacy of the law. Valimuhammad raised serious concerns over Sections 138(3A) and 140 (6A) of the Income Tax Ordinance, which render judicial relief ineffective by making disputed tax liabilities immediately recoverable, even when courts have granted relief. This undermines taxpayers' right to fair adjudication. 'Allowing inland revenue officers to be stationed at business premises is not only an invasion of privacy but will also lead to harassment of taxpayers.' The PCDMA Chairman appealed to President Asif Ali Zardari and the Ministry of Law & Justice to withdraw the Income Tax (Amendment) Ordinance 2025 and refrain from any anti-business measures to ensure uninterrupted commercial activity. He emphasised that only a thriving business environment can generate revenue for the government. He further warned that if government policies force businesses to shut down, the state itself will suffer massive revenue losses. The Korangi Association of Trade and Industry (KATI) has categorically rejected the newly introduced Tax Ordinance 2025, labelling it as anti-business, unconstitutional, and detrimental to investment. KATI President Junaid Naqi strongly condemned the ordinance, warning that the sweeping powers granted to tax authorities amount to 'economic terrorism.' He said the ordinance empowers the Federal Board of Revenue (FBR) to take extreme measures such as freezing bank accounts, seizing property, and sealing factories immediately after a court ruling— without prior notice or warning to the businesses involved. 'This ordinance is a blatant violation of the constitution, the judiciary, and the basic freedom of doing business in Pakistan,' he asserted. 'Instead of fostering trust and confidence in the business community, the government is creating an environment of fear and uncertainty.' The KATI chief highlighted that the amendments to the Income Tax Ordinance 2001 and the Federal Excise Act 2005 permit FBR officers to be stationed within factories and business premises, where they can directly monitor production, stock, and the movement of goods. He described this as an extreme intrusion into private enterprise and likened it to 'spying in the name of economic oversight.' Naqi warned that such draconian measures would not only harm the country's struggling economy but also discourage future domestic and foreign investment. 'This is not legislation for the benefit of a person or a department— this seems like a well-orchestrated move against the entire business community.' He called on the government to immediately revoke the ordinance and engage with all stakeholders before introducing any such drastic reforms. Copyright Business Recorder, 2025
Business Recorder
01-05-2025
- Business
- Business Recorder
ST returns: PCDMA urges FBR to extend deadline to May 31
KARACHI: The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has requested the Federal Board of Revenue (FBR) to extend the deadline for filing sales tax returns to May 31, 2025. In an appeal to the FBR chairman, PCDMA Chairman Salim Vali Muhammad highlighted several technical issues following recent updates to the IRIS portal, which have made it nearly impossible for taxpayers to meet the current deadline despite their best efforts. He pointed out that errors in calculations in the new integrated Annex H1 and Annex J have prevented a majority of taxpayers from filing their March 2025 sales tax returns. PCDMA Chairman requested the Chairman FBR to extend the deadline until necessary corrections are made in the IRIS portal and to resolve the technical issues so that taxpayers can file their sales tax returns without any difficulty. Copyright Business Recorder, 2025
Business Recorder
25-04-2025
- Business
- Business Recorder
Complexities: PCDMA concerned over issues faced by taxpayers
KARACHI: The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has expressed serious concern over the increasing challenges faced by taxpayers in filing their returns due to the complex structure of the newly introduced Annex H1 and Annex J, as well as, the technical difficulties related to Unit of Measure (UoM) requirements. In a letter to the Chairman of the Federal Board of Revenue, Rashid Mehmood Langrial, PCDMA Chairman Salim Valimuhammad and Danish Saleem, Advisor to the Subcommittee for Sales and Income Tax, pointed out that the newly uploaded Annex H1 by the FBR was causing confusion and compliance issues due to unclear guidelines, frequent regulatory changes, and persistent portal glitches. 'Taxpayers are finding it increasingly difficult to reconcile withholding statements and comply with filing requirements due to the overly complex design of Annex H1,' said Salim Valimuhammad. 'The situation is further aggravated by the form's calculation mechanism, which mistakenly subtracts Sales Value instead of Cost Value.' PCDMA Chairman emphasised to the FBR the need to allow taxpayers to voluntarily enter the Cost Value before submission of returns, to ensure accurate reporting and avoid erroneous assessments, delayed refunds, or penalties. 'Taxpayers continue to face identical challenges with Annex J, especially when reconciling transactions under constantly fluctuating tax rates. Unclear guidelines combined with recurring portal malfunctions are imposing excessive compliance burdens - particularly on small businesses and individuals lacking professional tax assistance. Most critically, Annex J replicates Annex H1's fundamental error by deducting Sales Value rather than Cost Value, a systemic flaw that PCDMA confirms is causing rampant inaccuracies in tax filings across the board.' Another major challenge reported by members is the technical complexity of the Unit of Measure (UoM) codes. The lack of clarity in categorizing goods and services, coupled with system glitches, is causing filing errors and unnecessary delays, especially for businesses involved in diverse inventories and import/ export operations. PCDMA urged that such major changes should not be implemented without consulting key industry stakeholders. The association is urging the FBR to involve trade bodies and professionals in the decision-making process to ensure smoother implementation. Salim Valimuhammad said 'A collaborative approach will help reduce errors and build trust among the taxpayer community.' Copyright Business Recorder, 2025
Business Recorder
23-04-2025
- Business
- Business Recorder
PCDMA submits budget proposals to FBR
KARACHI: Pakistan Chemicals & Dyes Merchants Association (PCDMA) has submitted budget proposals to the Federal Board of Revenue (FBR), aimed at providing relief to taxpayers and building trust between the business community and the tax authorities. In budget proposals, PCDMA Chairman Salim Valimuhammad highlighted the increasing burden of compliance faced by taxpayers, stating that excessive documentation and frequent audits are discouraging participation in the formal economy. Budget proposal committee headed by Umair Tariq. The PCDMA chief emphasized that many taxpayers are willing to comply but struggle due to limited technical knowledge and the harsh behavior of tax officials. The association called for a more supportive and educational approach from FBR to encourage voluntary compliance. He also raised concerns over the audits conducted under Section 165 related to withholding tax returns. As withholding agents already handle tax collection responsibilities, the additional pressure of audits creates unnecessary stress. The association proposed discontinuing these audits to ease the burden on businesses. A significant issue outlined in the proposals was the difficulty families face in continuing businesses after the death of a sole proprietor. Under current laws, they are required to start the registration process from scratch. The PCDMA recommended allowing a family member to be added as a representative in the deceased's IRIS profile to ensure continuity of business operations. Salim Vali Muhammad called for the revival of the Final Tax Regime (FTR) for commercial importers. The PCDMA pointed out that although commercial importers are still paying the Additional Sales Tax (Value Addition Tax), the audit exemption that was previously granted in return has been withdrawn without explanation. The association demanded either the reinstatement of audit immunity or the withdrawal of the additional tax. He further urged the government to provide relief under Section 8B by restoring the previous facility for commercial importers. If immediate restoration is not possible, it suggested that at least 95% of output tax should be adjustable, with only 5% payable to address liquidity issues. 'To combat the issue of fake invoices, the association proposed reducing the rate of Further Tax from 4% to 1%, making it easier for genuine businesses to comply. It also recommended a phased reduction in the general sales tax (GST) rate, starting with a cut to 16%, with the aim of reaching single-digit rates in the long run.' Regarding local supplies, the association suggested lowering the withholding tax rate on raw materials to 2% for companies and 2.5% for individuals. This, they believe, would encourage more businesses to join the formal economy and improve documentation. The PCDMA strongly recommended the discontinuation of the Export Facilitation Scheme (EFS), arguing that it has primarily benefited unscrupulous actors who exploit the system to evade taxes under the guise of exporting goods. The association emphasized that such schemes are incompatible with Pakistan's current economic environment, where weak enforcement mechanisms and widespread pilferage remain major concerns. 'EFS has not only failed to achieve its intended purpose but has also created difficulties for genuine importers while encouraging non-taxpayer actors to thrive. The association urged the government to instead focus on improving and expediting the standard refund system to support legitimate exporters without facilitating tax evasion.' The PCDMA also raised concerns about unequal treatment between commercial and industrial importers under Section 148 of the Income Tax Ordinance. The current higher tax rates for commercial importers were described as unjustified, particularly since many manufacturers misuse their status to import goods for local sale. The association called for an end to this disparity or the reinstatement of the FTR if the higher rates are to continue. Salim proposed streamlining customs duties under PCT 32.04, suggesting a flat rate of 5% to eliminate under-invoicing and plug revenue leakages. It also demanded the abolishment of the Rs 500 WeBOC token fee, pointing out that importers are now paying an equivalent PSW fee and should not be charged twice. The PCDMA recommended capping customs duties on raw materials such as chemicals and dyes at 5%, arguing that the current higher rates—up to 20%—along with additional customs duties, are detrimental to business and must be eliminated. The proposals reflect the business community's desire for a fairer and more efficient tax system and underscore the need for reform to restore confidence and support economic growth. Copyright Business Recorder, 2025
Express Tribune
18-04-2025
- Business
- Express Tribune
Pakistan, China eye closer trade ties at InterDye 2025
Listen to article A high-profile delegation from Pakistan's chemicals and dyes sector held key discussions with Chinese industry leaders during InterDye 2025 in Shanghai, aiming to boost bilateral trade and cooperation. According to a press statement issued on Friday, the delegation was led by Salim Valimuhammad, Chairman of the Pakistan Chemicals & Dyes Merchants Association (PCDMA). They met with Shi Xianping, Chairman of the China Dyestuff Industry Association (CDIA), and Weina Wang of the China Council for the Promotion of International Trade (CCPIT) to explore greater collaboration. The two sides discussed expanding trade under the Pakistan-China Free Trade Agreement (FTA), especially by including more dye-related products under HS Code 3204.1600, which are in high demand in Pakistan's export sectors.
