• Sales Tax abolished on dairy products, stationery, bicycles

      July 19, 2013
      Print : Top Story

      ISLAMABAD: The Federal Board of Revenue (FBR) has abolished 17 percent Sales Tax by restoring zero rating facility on two dozen items, including dairy products, stationery items and bicycles along with their raw materials.

      The FBR had imposed 17 GST on these items in the budget 2013-14 but after protests by different segments of the society, Finance Minister Ishaq Dar promised to restore the zero rating facility for these items.

      According to an FBR statement issued here on Thursday, as per the directions of Federal Minister for Finance Ishaq Dar, the facility of zero-rating had been restored on various dairy products, stationery items and bicycles along with their raw materials, packing materials, sub-components, components, sub-assemblies and assemblies, imported or purchased locally for manufacture of the said goods.

      In this regard, SRO. 670(I)/2013 dated 18th July, 2013, issued by the FBR on Thursday, stated that the zero rating facility had been restored for colors in sets, writing, drawing and making inks, erasers, exercise books, pencils, sharpeners, geometry boxes, pens, ball pens, markers, and porous tipped pens, pencils including color pencils, milk including flavored milk, yogurt, cheese, butter, cream, desi ghee, whey, milk and cream, concentrated and added sugar or other sweetening matter, preparations for infants use put up for retail sale, fat filled milk and bicycles.

      According to the SRO, this facility will be subject to certain conditions as the zero rating under this notification shall be available subject to determination of input/output ratios by the Input-Output Co-efficient Organisation (hereinafter referred to as “IOCO”), if not already determined under an earlier concessionary notification issued for such goods provided that this condition shall not be applicable in case of import of finished goods and their supply in same state; and for import and local procurement of raw materials, packing materials, subcomponents, components.

      The Inland Revenue Service (IRS) commissioner shall approve the declaration of input-output ratio of the manufacturer without physical verification in case the declared input-output ratio and input requirement is in accordance with the prevailing industry average or the inputs consumption pattern of the applicant manufacturer or as already determined by IOCO under an earlier notification issued for such goods.

      In case the commissioner is not satisfied with the declared input-output ratios of the goods to be manufactured because of their being prima facie not in accordance with the prevalent average of the relevant industry or in case the input-output ratios are not already determined by IOCO, he may, after allowing six months provisional quantity, make a reference to the IOCO for final determination thereof. On receipt of report from IOCO, the commissioner shall then determine the final annual quantitative entitlement of inputs and grant final approval for zero-rated purchases or imports.

      In case of non-receipt of report from IOCO within four months of the application made by the manufacturer, the commissioner shall provisionally allow another six months quantity to the applicant manufacturer.

      In case of goods to be imported by the registered manufacturer, the authorised officer of Inland Revenue shall furnish all relevant information online to Customs Computerized System as per Annex-C to this notification against a specific user ID and password obtained under section 155D of the Customs Act, 1969 (IV of 1969).

      Sales Tax abolished on dairy products, stationery, bicycles was posted in Top Story of TheNews International - https://www.thenews.com.pk on July 19, 2013 and was last updated on July 19, 2013. This news story is related to Archive - breaking news, latest news, pakistan ne. Permanent link to the news story "Sales Tax abolished on dairy products, stationery, bicycles" is https://www.thenews.com.pk/archive/print/631827-sales-tax-abolished-on-dairy-products,-stationery,-bicycles.