Draft exempts food, life-saving drugs, books

General Sales Tax Bill draft also excuses 184 textile units from paying sales tax on utilities.

ISLAMABAD: The General Sales Tax Bill 2010 will provide exemptions on life-saving drugs, food items, some healthcare items and books.

Sales tax exemption on food items, whether packed or not, are provided under the bill. Exemption will be applicable to all food items excluding bottled, canned or packaged food under brand names.

The bill will also exempt books, newspapers and periodicals, other than material wholly or predominantly devoted to advertising. The exemption will also apply to the Holy Quran in whatever form or media.

Exemptions on some healthcare products are also outlined in the bill. Edible oils and vegetable ghee, including cooking oil, on which federal excise duty is charged, levied and collected by a registered manufacturer or importer are also provided exemption.

The import of personal wearing apparel and bona fide baggage by overseas Pakistanis and tourists will also be exempted under the bill.

Exemption on utilities

Meanwhile, the Federal Board of Revenue (FBR) has exempted another 184 registered industrial units, belonging to the textile sector, from sales tax on their consumption of electricity and gas, through a series of six amendments to the sales tax general orders.

Of these units, 130 are registered with Faisalabad Electric Supply Company. Exemptions from sales tax on gas include four customers of Sui Southern Gas Company and 12 of Sui Northern Gas Pipelines.

Published in The Express Tribune, November 12^th, 2010.