Wednesday, May 15, 2024

PAMA& PAAPAM rejects the FBR data demands

Auto and auto parts manufacturers have asked the Federal Board of Revenue (FBR) not to force companies to submit their data repeatedly, as it only affects how easy it is to do business in the country.

The Pakistan Automotive Manufacturer Association (Pama) and the Pakistan Association of Automobile Parts and Accessories Manufacturer (Paapam) submitted the application in separate letters to FBR chairman Javed Ghani.

Pama's CEO Abdul Waheed Khan, while conveying members' replies, said the procedures described in SRO 615 (1) / 2020 were not practical because the required data was already part of the FBR protocol.

Read Also: Automobiles sector seeks tax relief in budget

"The automotive industry is a 100% documented industry. Forcing companies to submit data over and over again will only increase bureaucratic barriers for businesses," he said.

"Pama has always supported the government's efforts to document the economy, but such rules only affect the ease of doing business in the country," the DG said in the letter.

He noted that at various stages, Pama members were supervised by a number of government agencies, including the Engineering Development Board (EDB) and the FBR. Therefore, their full record is already available from the government.

He proposed some changes to make SRO 615 (1) / 2020 operational and support the manufacturers. The first proposal was that previously approved exemption certificates are presented in SRO 615 (1) / 2020.

“In Section II, a high-level committee has been established to assess applications. We recommend setting a timetable for measures for each step, so that uncertainty and delays in the application process can be avoided, ”states the association.

In Title III, the cumbersome documentation requirement proposed in Rule 40 (E) should be deleted as all necessary data was already part of the FBR administration and such information can only be requested by start-ups.

Likewise, the work of the Section III Committee should be delegated so that the workload can be effectively managed in the shortest possible time.

Meanwhile, the chairman of Paapam, M Akram, stated in his letter that the association had been properly administered in accordance with SRO 655 (l) / 2006 and under strict rules / controls by EDB, Department of Industry and web-based Customs (WeBOC).

"We assume that the full inspection procedure described in the said SRO has already been strictly implemented by EDB for all auto parts manufacturers," he said.

"And a full overview of their consumption will be performed and recorded by them (including synchronization with the car manufacturer's production) according to the processes of the proposed SRO 615," the letter said.

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