The Pakistan Sugar Mills Association wants the Federal Board of Revenue (FBR) to immediately rescind the SRO 603 (I) / 2009 issued last month, which provides for deduction of 20 percent withholding sales tax from all payments made to unregistered person(s). As unregistered persons will not issue any sales tax invoices, they will remain out of sales tax net, PSMA Punjab Zone Chairman Javed Kayani said. "The resultant input tax would also not be claimable and will have to be borne by the withholding agent by himself. Even all petty payments for goods and services would be subject to withholding sales tax deduction," he said. He was also concerned about the purchase of sugarcane from the growers. He said sugarcane was exempted from sales tax. "Since the sugarcane is sold by small growers who are all unregistered persons, the department may insist for withholding sales tax deduction in the absence of sales tax invoices," he said.