LAHORE: The Pakistan Plastic Manufacturers Association has expressed concern over the simultaneous introduction of Third Schedule taxation on plastic household items and a new fixed tax regime, saying the measures could disrupt the documented plastic sector and increase costs.
In a statement, the association appealed to the government to rationalise the taxation framework, arguing that the introduction of a fixed sales tax regime for traders without corresponding sales tax record-keeping requirements creates disparities in the market, giving non-compliant segments an advantage over compliant plastic manufacturers.
Association office-bearers said there was a need for clarity on the government’s stated objective of promoting documentation, adding that the current policy mix could instead encourage informality.
They warned that continued distortions in the tax regime may push documented plastic product manufacturers towards informal operations in order to remain viable.
