KARACHI: Federal Board of Revenue (FBR) has amended SRO 1125(I)/2011 and notified six percent sales tax and two percent value addition tax on import of finished goods of textile and leather sector ready to use by general public.
The FBR on Monday issued SRO 1070(I)/2017 to amend SRO 1125(I)/2011 and said that supply of such items the sales tax rate would be six percent.
Similarly, the sales tax at 17 percent plus two percent value addition tax on import of finished goods of carpets, sports and surgical sectors. TheirTheir supply thereof will charge at 17 percent sales tax.
Federal Board of Revenue (FBR) had earlier clarified that all the items provided either in Table-I or Table-II or both the tables of SRO 1125(I)/2011 are eligible for the reduced/concessional rates.
In response to a query forwarded by Collector Appraisement West Shahnaz Maqbool, FBR clarified that import of finished goods of five sectors covered by SRO 1125(I)/2011 are chargeable to sales tax of 17 percent along with reduced value addition tax of 2.0 percent.
Shahnaz Maqbool had approached FBR seeking clarification regarding non-availability of concessionary/reduced rate of value addition tax under SRO 1125(I)/2011 for the reason that finished articles of leather and artificial leather, textile and textile made-ups have been excluded from the purview of the SRO under Table-1 have been examined.
FBR noted that under S. No. 4 of Table-11 of SRO 1125(1)12011, import of finished goods of five export oriented sectors covered by SRO 1125(1)/2011 and ready to use by general public. are chargeable to sales tax 17 percent along with 2.0 percent value addition tax and the position has remained unchanged after amendments introduced.
