ISLAMABAD: The government has decided to abolish sales tax on the import of machinery that are used for exploration and production of oil and gas, according to a document made available to The Express Tribune. The move has been taken to increase oil and gas production in a bid to reduce the energy gap in the country. The Federal Board of Revenue will release a notification in this regard today (Tuesday). Registered manufacturers and industrial importers will have to pay a fee to the customs authority excluding the sales tax through a post-dated cheque and when these registered manufacturers and industrial importers will file their sales tax returns, they will be returned the post dated cheques, according to the document. The document further informed that sales tax will be applicable on machinery supplied by commercial importers to unregistered industrial and commercial users.
Published in The Express Tribune, August 2nd, 2011.