24/05/2011 (The Nation) - Famous industrialist, chairman Pakistan Edible Oil Refiners Association (PEORA) and former president Faisalabad Chamber of commerce and industry Mian Muhammad Hanif has proposed to the federal government some suggestions for the upcoming federal budget 2011-12 that levy withholding Tax on Imported Edible Oils in the PTR Mode. “The structure of income tax applicable on Edible Oil and Vegetable Ghee industries before 30th June 2009 would be as on import of raw material at 2% us 148(8) and as final discharge of liability.”

Mian Muhammad Hanif proposed that where as it has been converted in Finance Bill 2009 as on import of raw material @ 3% u.s. 148 (8) and as minimum tax liability instead of final discharge. Hanif further added that the PTR system was most suitable as it avoids interaction between assesses and the tax collecting authority. Further the local / foreign investment was brought in this industry on the Government policy of PTR.

He said that while decision requested, with holding Tax on edible oils may be converted to PTR mode as Final Discharge Liability. “Second main proposal No. 2 is government increased the Income tax (WHT) from 1% to 2 % on the purchase of locally produced edible oils”. He apprehended.
He reminded that the Government in the Federal Budget 2008-09, Second Schedule Clause (38)(b)(ii) Finance Bill had increased the Income Tax from 1% to 2% on purchase of locally produced Edible Oils. The Clause spells out as “seeks to enhance the reduced rate of tax from 1% to 2% on the purchase of locally produced Edible Oils by the manufacturers of Cooking Oil or Vegetable Ghee.” He said.
Mian Hanif, as chairman Pakistan Edible Oil Refiners Association, proposed that the Edible Oil Refineries have been established in Pakistan to refine Crude Palm Oil (CPO). These Refineries are in fact playing role of Value Added Industry. Our Members import Crude Palm Oil (CPO) from Malaysia / Indonesia.