FPCCI urges government to establish a level-playing field for commercial importers

Anomaly breeds flying invoices, encourages the misuse of industrial licenses

KARACHI: The President of FPCCI, Mr. Atif Ikram Sheikh, has called on the government to fix what he described as unfair tax rules on commercial importers of industrial raw materials.

He said the current system is putting extra pressure on importers and should be corrected to ensure equal treatment with industrial manufacturers. He added that this step could also help save billions for the national economy.

He explained that commercial importers are currently facing an additional tax burden of around 6% to 9%, while industrial manufacturers are charged a much lower rate of about 3% VAT on imports by saying “You are forcing legitimate businesses to close their doors. It is not an industry’s job to trade”.

Furthermore he added that this anomaly breeds flying invoices, encourages the misuse of industrial licenses, and severely damages the national exchequer. Treating industrial raw materials equally across all sectors is a definitive recipe for saving billions of rupees.

According to him, this difference is damaging fair competition and forcing many businesses, especially SMEs, into financial trouble. He warned that such pressure could even force small businesses to shut down.

FPCCI Senior Vice President Saquib Fayyaz Magoon also raised concerns over the tax system. He said the proposed rules encourage unfair trading practices and weaken the formal economy. He added that small industries depend heavily on commercial importers for raw materials, and any damage to them will directly affect jobs and production.

Business groups said the current situation is also increasing risks of undocumented trade and misuse of industrial licenses. They urged the government to revise the finance bill and ensure equal taxation on all imports of raw materials. They said a fair system is necessary for a stable, competitive, and growing economy in Pakistan.

The issue was also highlighted in a high level press conference held at the Federation in Karachi. The event was attended by senior leaders of the Pakistan Yarn Merchants Association (PYMA), Pakistan Artificial Leather Importers & Merchants Association (PALIMA), Pakistan Chemicals & Dyes Merchants Association (PCDMA), Pakistan Iron and Steel Merchants Association (PISMA), and Pakistan Plastic Importers Association.