KARACHI: The Pakistan Polypropylene Woven Sack Manufacturers Association (PPWSMA) has reiterated its concerns regarding the disparity between commercial and industrial imports of industry-specific raw materials and has urged the government to take corrective measures in the upcoming tax regime.
In a communication addressed to the director general of the Tax Policy Office, Finance Division, the association stated that it had expected its proposals aimed at eliminating large-scale tax evasion to be incorporated into Budget 2026-27.
The association proposed imposing a regulatory duty on commercial imports of Polypropylene Granules (HS Code 3902.1000), describing them as an industry-specific raw material used exclusively by the polypropylene industry.
The PPWSMA also called for the creation of a level playing field between commercial and industrial imports by exempting industrial importers from withholding tax under Section 153 and applying a similar tax rate under Section 148.
It also recommended the reintroduction of the differential sales tax regime, which had remained in place for 10 years and was used to tax the value added by finished polypropylene bags.
The association further proposed mandatory printing of Track and Trace registration numbers on polypropylene bags to ensure documentation of production under the Track and Trace system.
According to the PPWSMA, commercial imports of polypropylene granules facilitate undocumented and untaxed production and supply of polypropylene bags throughout the industrial packaging supply chain. The Association stated that implementation of the proposed measures would discourage misuse of commercial imports and help eliminate anomalies in the withholding tax regime.
