FBR official summoned over foam-makers' plea.
LAHORE -- The Lahore High Court on Tuesday sought personal appearance of chief tax policy officer of the Federal Board of Revenue (FBR) on a petition moved by local foam manufacturers questioning sale of smuggled foam in Pakistan.
Representing the foam manufacturers, advocate Taffazul Haider Rizvi submitted that the foam manufactures in Pakistan were on the brink of complete collapse due to sales tax exemption offered to the foam manufacturers of Azad Jammu and Kashmir (AJK).
He said as a result nearly 85 per cent of all foam manufactured in AJK was being exported to Pakistan without any payment of tax or duty. He argued that the authorities were failing to levy customs duties when manufactured foam entered Pakistan.
The counsel pointed out that at the moment in Pakistan only five foam manufacturing companies were left as all others had either closed down or relocated their manufacturing facilities to AJK.
He said government should be directed to provide level playing field to local foam manufacturers and stop smuggling of the foam.
Justice Shahid Jamil Khan, after hearing preliminary arguments, directed the chief tax policy officer of the FBR to appear in person along with deputy attorney general on March 14.
The five foam manufacturers left in Pakistan namely Ruby Foam, Crown Foam, United Foam, Vohra Foam and Cannon Foam Industries filed the petition.