Latest news with #Valimuhammad
Business Recorder
4 days ago
- Business
- Business Recorder
PCDMA chief exposes rampant EFS exploitation
KARACHI: Salim Valimuhammad, Chairman of the Pakistan Chemicals & Dyes Merchants Association (PCDMA), has exposed rampant exploitation of the Export Facilitation Scheme (EFS), with fraudulent practices reportedly costing the national treasury a staggering Rs 25 billion. The veteran trade representative warned that the scheme, designed to boost exports, has instead become a pipeline for duty evasion and revenue leakage. Presenting import-export data analysis, Valimuhammad revealed that under Chapters 27 to 32 of chemicals & dyes - particularly 3204 - imports surged by 80% between 2023-2024 while corresponding exports showed no growth. 'This glaring discrepancy proves large-scale duty-free imports are being diverted to local markets instead of being used for export production,' he stated in a press release. The PCDMA chief provided a detailed breakdown showing that just for Chapter 3204 imports, the government should have collected approximately Rs 6 billion in Customs duty and Rs 18 billion in sales tax, totalling Rs 24-25 billion in potential revenue. However, actual collections remained alarmingly low, indicating massive leakage in the system. Valimuhammad proposed urgent reforms to curb EFS misuse, including immediate processing of 18% sales tax rebates and Customs duty refunds upon receipt of export remittances to improve cash flow for genuine exporters. His key recommendation was imposing a complete ban on duty-free imports under EFS without valid export Letters of Credit (LCs). Highlighting the scheme's distortive impact on trade, the PCDMA chairman noted a 25% decline in association membership over two years as regular importers couldn't compete with industries availing duty-free raw materials. 'While importers pay customs duty, income tax and additional sales tax, some industries get completely tax-free imports under EFS - this discriminatory treatment is destroying level playing field,' he argued. 'Dozens of legitimate importers of chamicals & dyes have been forced to shutter their businesses completely as a direct result of these scheme violations.' Expressing frustration over official inaction, Salim Valimuhammad revealed that despite submitting detailed budget proposals to FBR highlighting EFS anomalies and suggesting corrective measures, the association has received no response. He made a direct appeal to Prime Minister Shehbaz Sharif, Finance Minister Muhammad Aurangzeb and FBR Chairman Rashid Mahmood Langrial to immediately restrict EFS benefits only to actual export production and completely disallow duty-free imports without verified export LCs. Copyright Business Recorder, 2025
Business Recorder
06-06-2025
- Business
- Business Recorder
ST returns filing: PCDMA concerned at FBR's new requirement
KARACHI: The Pakistan Chemical & Dyes Merchants Association (PCDMA) has raised serious concerns about difficulties faced by traders in filing their sales tax returns, following a new requirement introduced by the Federal Board of Revenue (FBR). Through SRO 55(I)/2025, the FBR has made it mandatory for all registered commercial importers, distributors, and wholesalers to declare their stock position in Annexure H1 with every monthly sales tax return. However, PCDMA Chairman Salim Valimuhammad said the lack of clear instructions from the FBR has created unnecessary confusion and hardship. He explained that many traders submitted their March 2025 returns without Annex H1 simply because they didn't understand the process. As a result, they're now unable to declare their opening stock for April, and the delay continues even in June. 'PCDMA has received many complaints from members who are still unable to file their April 2025 returns due to this confusion,' Valimuhammad stated. He added that many traders were forced to go back and forth with the FBR for clarification. Eventually, the FBR allowed revised returns without needing to change Annex A or C or seek commissioner approval—but by then, it was too late for many. To address the issue, PCDMA is urging the FBR to grant traders a 60- to 90-day grace period to submit Annexure H1 after filing their returns. This would be similar to the 120-day window already available to manufacturer-exporters. 'PCDMA believes that such decisions should be made after proper consultation with trade bodies,' Valimuhammad said. He emphasized that timely and clear communication is crucial to ensure compliance and avoid similar problems in the future. PCDMA continues to push for reforms that protect traders' interests and promote smoother tax procedures. The association urges urgent action before more disruptions affect business operations, confidence, and overall revenue collection in the coming months. Copyright Business Recorder, 2025
