The Pakistan Chemicals & Dyes Merchants Association (PCDMA) has called for stronger controls on the Export Facilitation Scheme (EFS), arguing that growing imports under the scheme are creating tax disparities and need closer monitoring.
The issue was raised during PCDMA’s annual dinner, where Senate Standing Committee on Finance & Revenue Chairman Senator Saleem Mandviwalla assured the chemicals and dyes trade that its taxation, EFS, import and e-invoicing concerns would be taken up at the parliamentary level.
PCDMA Calls for Action on EFS
PCDMA Chairman Salim Valimuhammad said imports under the EFS had increased by more than 70 percent without a similar rise in exports.
He proposed several measures to prevent potential misuse, including linking EFS imports with actual export proceeds or letters of credit. The association also suggested imposing a 40 percent limit and conducting annual audits based on an industry’s three-year consumption and export records.
According to PCDMA, stronger monitoring is necessary to ensure that the scheme continues supporting genuine export-oriented activity rather than creating an uneven tax environment.
Tax Disparity Remains a Major Concern
The association also called for the removal of the 3 percent additional sales tax and demanded equal treatment for commercial importers and industrial businesses.
PCDMA argues that the chemicals and dyes sector plays an important role in supplying textile, leather, pharmaceutical and other export-focused industries. Any tax or import policy affecting the sector can therefore have wider implications for manufacturing and exports.
Parliament to Review Business Concerns
Senator Saleem Mandviwalla said the Senate finance committee would invite the Federal Board of Revenue, Ministry of Finance and other relevant departments to examine the concerns raised by the business community.
He also urged trade associations and chambers to maintain regular engagement with policymakers instead of waiting until the federal budget period to raise their issues.
According to Mandviwalla, policymakers must balance business demands with the government’s revenue requirements and commitments under the IMF programme.
E-Invoicing Issues Also on the Agenda
Alongside EFS and taxation, the chemicals and dyes trade raised concerns over the implementation of e-invoicing.
The association called for consultations between the business community, FBR, Finance Ministry and Senate to address practical difficulties and improve the system.
The upcoming discussions could determine whether changes are made to EFS monitoring, tax treatment and e-invoicing requirements. For the chemicals and dyes sector, the priority is to ensure that tax and import policies support legitimate businesses without creating unfair advantages or additional costs.