Located in Faisalabad, Sutar Mandi – also known as Yarn request – is one of the biggest yarn and fabric requests in Asia. According to the Federal Board of profit( FBR), there are 860 registered wholesalers, dealers and commission agents in Sutar Mandi. Spinner, needlewomen, dealers of Yarn Market, brokers and agents are attached with this business mecca.
Talking to Dawn, sources explained that kachchi parchi and pakki parchi were principally plain paper bills which were being used to conduct business in the Yarn Market.
FBR officers claim that kachchi parchi is being used to shirk levies – which run into millions – as these deals remain anonymous. still, disbanding the print, dealers said that this was a decades-old practice at the request and claimed that they were paying levies. Tax collection from Sutar Mandi is anticipated to fall as utmost trade currently is being done using cash rather than through banks.
Riaz, a fabric dealer, who didn’t allow to use his full name, said that despite paying billions of rupees in levies, the cloth sector was being dubbed as duty evaders which wasn’t a good sign. “ We issue kachchi parchi when we shoot fabric for checking at the mending section. After completion of the healing process, a pakki parchi is issued to the supplier featuring total quantum to be paid and the number of metres to be supplied against this quantum. The quantum is being paid through banks as we know that any wrongdoing in the payment process would land us in trouble, ” he added.
Riaz claimed that rather of chancing other ways to increase profit collection, the FBR officers and media were unfairly labelling them as duty evaders.Pakistan Council of Looms Owners Association Chairman Waheed Ramay conceded the kachchi parchi tradition in the Yarn Market and said that maturity of dealers weren’t registered for General Deals duty( GST) while some were doing business with ill- gotten plutocrat.
“ After the weaving process, the GST chain isn’t completed. No dealer in slate cloth trading is registered for GST and therefore the duty chain remains deficient, ” he explained. “ Due to kachchi parchi, academic trading also happens numerous times during the time which harms the business of clean dealers dealing in yarn, ” he added.
An FBR functionary said that Rs222 million profit was collected in 2019- 20 while the duty quantum was Rs46m in 2017- 18. “ The FBR has determined the diurnal yarn business size in Sutar Mandi at Rs450m. The quantum of fabric isn’t included in this number, ” he added.
With the arrival of bettered dispatches thanks to cellphones and the internet, dealers have started to shift their services from the main yarn request to different locales in the megacity to avoid heavy shop rents. Nadeem Hussain, a dealer of yarn, said once people from different metropolises like Toba Tek Singh, Chiniot and indeed from Lahore visited Sutar Mandi to buy yarn and fabric. “ Now the installation of mobile phones has changed the business pattern, ” he said.
He admitted that yarn was still being vended through kachchi parchi for reasons best known to the dealers and spinning manufactories. They’ve to pay full quantum as this plain damage would not bear any fruit for them, he added. Talking to Dawn, FBR fresh Commission Headquarters Asif Rafiq said the profit body was apprehensive of the undocumented frugality in Sutar Mandi and was covering the situation nearly.
“ Undocumented goods remain unrecorded till their jilting and this is inflicting losses on the public kitty. Kachchi parchi is being used to shirk levies while only pakki parchi is being brought on the record by businessmen for the duty purpose, ” he added. He went on to add that a public mindfulness drive was demanded for discouraging the use of fake and flying checks. “ We lately detected a duty fraud involving millions of rupees, ” he added.
The FBR functionary lamented that dealers in Faisalabad weren’t ready to trust government institutions. “ They’re optimising their gains through duty elusion and this trend must be arrested.