Plastic importers and manufacturers have threatened to shut down their businesses and stage sit in protest against unchecked smuggling of plastic moulding compound from Iran by land route. A nine-member delegation of Punjab Plastic Importers and Manufacturers Association called on LCCI President Irfan Qaiser Sheikh on Monday and informed him that the unchecked menace of smuggling was not only causing a loss of Rs25 billion annually to the exchequer, but also hitting hard the entire businesses.
Punjab Plastic and Manufacturers Association delegation, comprising Malik Munwar, Javaid Jillani, Chaudhry Mobeen, Mian Anjum, Sheikh Waheed, Usman Sharif, Sheikh Pervaiz, Sheikh Mohammad Ayub and Malik Fakhir Sultan said it is very surprising that on one hand, FBR authorities were exiting tax payers by issuing SROs like 191(I) 2012 while on the other hand, the menace of smuggling is fast spreading its tentacles under their watch and at the cost exchequer. The delegates said the authorities concerned should immediately ban import of Polyethene and Polyproplene from Iran via land route from any border of Pakistan, as at present these products are available in the local market at Rs20/kg, below the imported price that is very damaging for the local businessmen. They informed the LCCI President that the association had already sent letters to Federal Board of Revenue (FBR) that the smuggling of polymers from Iran was not only causing huge loss to the government, but was also badly damaging the local investors who are running their businesses through clean documentation. They said only because of these unscrupulous elements it has become almost impossible for the genuine businessmen to continue their businesses.
They said that the total import of plastic raw material Polyethene and Polyproplene in 2010-2011 was about Rs75.5 billion. The importers pay advance tax at port about 38 per cent in lieu of duties and taxes and if the smuggling is not stopped, it will lead to a loss of minimum Rs25 billion to the exchequer. They said it was very unfortunate that people sitting at the helm of affairs of FBR are taking this important issue of national importance very lightly. They said government would have to weed out the menace of smuggling once for all to save the local investors and economy.
Speaking on the occasion, Irfan Qaiser Sheikh said Lahore Chamber of Commerce would extend full cooperation to FBR if it initiates a strict action against such black sheep who are not only challenging the writ of the law, but also denting the economy in a big way. He said growth of the unorganised sector must be checked for the sake of organised sectors that are doing business after paying all their dues.
