KARACHI: With a view to encourage documentation of economy, the Federal Government has notified higher rates of advance tax on imports made and goods/services provided by non-tax-return filers.
Federal Government via SRO 136(I)/2015 dated February 13, 2015 has notified rate of advance tax to be collected by the Customs on imports made by non-tax-return filers, which is around 50 percent higher than that imposed on return filers.
The notified rate of advance tax at import stage is now 1.5 percent of the import value as increased by customs duty, sales tax and excise duty in case of non-filer industrial undertaking importing remeltable steel and directly reduced iron for its own use; persons importing potassic fertilizers in pursuance of Economic Coordination Committee of the cabinet‘s decision; persons importing urea; and Manufacturers covered under. SRO 1125(I)/2011.
Advance tax for the filer importer falling under the above mentioned category is 1.0 percent.
Advance tax at the rate of 3.0 percent is notified for non-filer persons importing pulses as against 2.0 percent for filers. Rate is 4.5 percent for non-filer commercial importers covered under SRO 1125(I)/2011 compared with 3.0 percent for filers.
Non-filer ship breakers on import of ships will pay advance tax at the rate of 6.5 percent as compared with 4.5 percent imposed on filer ship breakers. Other non-filer Industrial undertakings and companies are liable to pay advance tax on their imports at the rate of 8.0 percent of the import value as increased by customs duty, sales tax and federal excise duty as against 5.5 percent imposed on tax-return filer importers.
Federal government has also notified 50 percent higher advance tax slabs for non filer companies and other undertakings providing goods and services.
Advance tax at 12 percent has to be deducted on gross amount payable to non-tax-return filer companies against goods and services, which is 8.0 percent for documented companies while rate is 15 percent for other non-filer undertakings as against 10 percent for filers.

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