04-14-2011, 09:16 PM
After understanding SRO 283 learned panelist are requested to give their anomolies. Its marits and demerits etc so that budget anomolies / Correspondance can be made with the FBR.
Anomolies i can suggest are.
1- It will destroy the local manufacturing industry and inflation will climb up. ( simply After all one has to charge GST at least at 4%).
2- Manufacturing industries other than 5 sectors previously enjoying zero rating would have to pay tax @ Standard rate for onward transactions means at least 19.5% addition. again inflation.
3- Suppose a person is registered importer of goods used in textile sector and import goods at zero rated. He will enjoy now by selling invoice (only) to registered person and delivering goods to unregistered person at higher rate. Mojan e Mojan. Goods from Local industry would available at higher rate than the imported goods. The best way to destroy economy of Pakistan.
4- Suppose A RP purchased 3 items to manufacture an item. out of three, he paid GST on 1 say @ 17% Rs.100. He made supplies to URP of of given sector and paid GST @ 6%. Undoubtedly He can't claim or adjust GST paid on Supplies @ 6%. What will happen with GST paid as input i.e. Rs.100 which is receiveable / adjustable / refundable in the books of accounts. If it is gone / finish with 6% then manufacturere has to add Rs.100 in cost so as to pay further tax @ 6%. (Again prices will go up).
5- It is firt time in the history of pakistan and might be internationally that an item (PCT heading) has dual effects.
6- It is misunderstood that due to SRO 283 registration will inclrease. Not at all. Instead specific 5 sectors would have been aimed to destroy.
7- If SRO 283 is aimed to collect GST from auxiliary industry then new PCT heading might be added in the custom tarrif like indian and chinese custom tarrif.
8-I am unable to understand how and who will determin RP and specially URP (Whole seller , importers, traders etc ) doing business in the given sectors.
9- In short SRO 283 is very very harmfull to the local industry and might have been designed by some person who do not know ground reality and simply philaspher of Pakistan Economy sitting outside Pakistan.
Anomolies i can suggest are.
1- It will destroy the local manufacturing industry and inflation will climb up. ( simply After all one has to charge GST at least at 4%).
2- Manufacturing industries other than 5 sectors previously enjoying zero rating would have to pay tax @ Standard rate for onward transactions means at least 19.5% addition. again inflation.
3- Suppose a person is registered importer of goods used in textile sector and import goods at zero rated. He will enjoy now by selling invoice (only) to registered person and delivering goods to unregistered person at higher rate. Mojan e Mojan. Goods from Local industry would available at higher rate than the imported goods. The best way to destroy economy of Pakistan.
4- Suppose A RP purchased 3 items to manufacture an item. out of three, he paid GST on 1 say @ 17% Rs.100. He made supplies to URP of of given sector and paid GST @ 6%. Undoubtedly He can't claim or adjust GST paid on Supplies @ 6%. What will happen with GST paid as input i.e. Rs.100 which is receiveable / adjustable / refundable in the books of accounts. If it is gone / finish with 6% then manufacturere has to add Rs.100 in cost so as to pay further tax @ 6%. (Again prices will go up).
5- It is firt time in the history of pakistan and might be internationally that an item (PCT heading) has dual effects.
6- It is misunderstood that due to SRO 283 registration will inclrease. Not at all. Instead specific 5 sectors would have been aimed to destroy.
7- If SRO 283 is aimed to collect GST from auxiliary industry then new PCT heading might be added in the custom tarrif like indian and chinese custom tarrif.
8-I am unable to understand how and who will determin RP and specially URP (Whole seller , importers, traders etc ) doing business in the given sectors.
9- In short SRO 283 is very very harmfull to the local industry and might have been designed by some person who do not know ground reality and simply philaspher of Pakistan Economy sitting outside Pakistan.
