Sales tax on machinery import may go

FBR chief agrees on 5% sales tax on major export industries.


Express July 09, 2011

KARACHI:


Federal Board of Revenue (FBR) Chairman Salman Siddique has agreed that sales tax on domestic sales of five zero-rated industries will be imposed at a reduced and uniform rate of five per cent and said the government was considering removing sales tax on machinery import. The five sectors are textile, leather, sports goods, surgical instruments and carpets.


“A scheme allowing post-dated cheques is also under consideration with the help of business representatives,” said Siddique while speaking to businessmen at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday. Senior tax officials also accompanied the FBR chief during the visit.

He announced that Pakistan Automated Computerised Clearance System, a speedy cargo clearance system, would continue, rejecting reports that talks between software supplier Agility and FBR on clearance of dues and purchase of the software had been unsuccessful.

He also agreed to accept FPCCI’s valuation certificate and said issues of buyer’s responsibility for any irregularity or unlawful activity of the supplier would also be resolved.

He said he would review issues like tax on tax at import and supply stages and deduction of withholding tax on export of rice. Duty on dyes would be levied at a uniform rate, he said in response to suggestion of a uniform tax rate of five per cent.



Published in The Express Tribune, July 10th, 2011.

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