KARACHI: The Federal government has limited the exemption from collection of tax at import stage under section 148 of Income Tax Ordinance, 2001 to specified entities and on import of specified items.
According to details, previously, under clause (56) of Part IV of Second Schedule, exemption from collection of tax at import stage under section 148 was available in respect of goods classified in Chapters 27, 86 and 99 of Pakistan Customs Tariff.
This exemption was available to every person, even commercial importer, for the import of goods specified in the said chapters. Through Finance Act, 2015, exemption of goods specified in chapter 27 and under PCT heading 9918 (in Chapter 99) have been withdrawn. Exemption from collection of tax at import stage under section 148 is now available for import of specified items by specified entities.
Imports Petroleum oils and oils obtained from Bituminous mineral crude (PCT code 2709.000); Furnace Oil (PCT code 2710.1941); High Speed Diesel Oil (PCT code 2710.1931); Motor Spirit (PCT code 2710.1210); J.P.1 (PCT code 2710.1912); and Base Oil for lubricating oil (PCT code 2710.1993); light diesel oil (PCT Code 2710.1921); and super kerosene oil will be exempted from collection of tax at import stage.
The above mentioned exemption is only available to Pakistan State Oil Company Limited; Shell Pakistan Limited; Attock Petroleum Limited; Byco Petroleum Pakistan Limited; Admore Gas (Private) Limited; Chevron Pakistan Limited; Total-PARCO Pakistan (Private) Limited; Hascol Petroleum Limited; Bakri Trading Company Pakistan (Private) Limited; Overseas Oil Trading Company (Private) Limited; Gas and Oil Pakistan (Private) Limited; and oil refineries.
Moreover, exemption in respect goods under PCT heading 9918 (in Chapter 99) has also been withdrawn.