KARACHI:Sindh Governor Imran Ismail on Wednesday assured the Pakistan Chemicals and Dyers Merchant Association (PCDMA) to solve their genuine problems on priority basis. The governor said that government has taken maximum resources for enhancing the economic activities and problems will solve very soon. He said Government knows the problem of business community and would solve it in priority basis.

Governor expressed these views during a meeting with the delegation of Chairman PCDMA led by Chairman Shahid Vaseem which included Vice Chairman Saleem Nini, former Chairman Muhammad Naseer, Senior member Nasir Hayat Magoon, Mansoor hakimuddin and khozema safri.

PCDMA Chairman, Shahid Vaseem demanded the government to provide a level-playing field for commercial importers who are importing industrial raw material for SME segment.

He explained that three percent Additional Sales Tax on import of industrial raw materials if imported by commercial importers is irrational and unjustified, because three percent Additional Sales Tax can only be applied if the value addition on raw material is assumed 17.65 percent, which is not possible because there is no process of value addition involved and no inputs such as land, buildings, machinery, labour, electricity and gas etc. are used by commercial importers of same industrial importers.

On the contrary the value addition by manufacturers is assumed as 10 percent only and the GST is charged at the rate of 1.7 percent despite all the above inputs.

He claimed that by implementing same rate of taxes and extending benefits of different SROs for both commercial importers and industrial importers of Raw materials for one year will result in significant drop in import volume by the industrial importers, which will prove the misuse of reduce tax facility by the industrial importers and provide option to the government to trace the non-genuine industries who are only existing for importing raw materials for commercial sales.

Shahid Vaseem also mentioned the pathetic condition of jodia bazaar and invited governor to visit the area. He said it is surprising that this area which is commercial hub of the city presented the scenario of slum area due to encroachment and illegal occupation. He request to governor to allocate separate place to the members of PCDMA to store chemical outside from congested residential.