Latest news with #SalimValimuhammad
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.
Express Tribune
01-03-2025
- Business
- Express Tribune
Oman seeks investment in petrochemical sector
Listen to article Oman Consul General Sami Abdullah Salim Al Khanjari has invited Karachi traders to invest in the oil-rich Gulf Arab nation as there are vast opportunities for investment that offer significant benefits to the business community. New trade avenues can be explored in Oman in areas such as the petrochemical sector, where joint ventures and business agreements can bring the business communities of both countries closer, positively impacting their economies and further strengthening economic ties. The Oman consul general expressed those views during a meeting with a delegation, led by Pakistan Chemicals and Dyes Merchants Association (PCDMA) Chairman Salim Valimuhammad at the consulate. The consul general invited the PCDMA delegation to visit Oman, explore the petrochemical sector along with other industries and hold business-to-business meetings with Omani traders, which would be organised by the consulate. He also announced visa facilitation by the consulate based on PCDMA recommendations and emphasised the importance of promoting trade and strengthening economic relations. PCDMA Chairman Salim Valimuhammad gave a detailed briefing to the Omani envoy about the chemicals and dyes sector as well as discussed the available opportunities in Oman, related particularly to the import of industrial raw material. He also highlighted the potential of business-to-business meetings, contacts and trade opportunities with Omani traders. He welcomed the invitation for the delegation's visit and stated that the exchange of delegations between the two countries would promote mutual trade and expand business connections, helping Pakistan and Oman meet each other's trade needs.
