The Pakistan Chemicals and Dyes Merchants Association (PCDMA) today expressed concern over the recent decision of the federal government allowing industries to sell 50% of their imported raw materials in the local market, stating that this move undermines the fundamental purpose of industrial incentives and harms commercial importers.
PCDMA states that this policy, introduced under the Sales Tax Act, effectively legitimizes the misuse of specific tax and duty concessions meant for export industries. They assert that under these conditions, imported raw materials should remain solely for value addition and export, and should not enter the local market, to maintain economic balance and fairness.
A prominent figure of the Association, Saleem Wali Muhammad, has demanded a complete ban on the local sale of such raw materials. He emphasized that the current policy creates an unequal competitive environment, where industrial manufacturers are allowed to import at concessional rates while commercial importers have to bear a higher tax burden.
The Association highlights that this inequality not only harms commercial importers but also results in significant financial loss to the national treasury. At times, industrial entities sell the imported raw materials directly in the open market without processing, which exacerbates the issue.
PCDMA calls for the elimination of the distinction between commercial importers and industrial manufacturers. They support a uniform tax system at the import stage to ensure fair competition, strengthen the SME supply chain, and protect the interests of legitimate traders.
The Association has called upon the government and the Federal Board of Revenue (FBR) to implement comprehensive reforms, including a uniform tax system, to prevent the exploitation of industrial incentives and stabilize the national economy on a documented basis.