KARACHI: The Finance Bill 2018 proposes to waive the value addition tax of 3.0 percent chargeable on import of LNG under Rule-58B of Sales Tax Special Procedure Rules, 2007. It also proposes to provide reduced rate of sales tax from 17 percent to 12 percent on import of LNG by M/s PSO and M/s PLL and on supply of RLNG by these companies to M/s SNGPL.
Advisor to PM on Finance Miftah Ismail presenting the budget speech proposed to provide reduced rate of sales tax of 3.0 percent on all fertilizers across the board and to provide for reduced rate from 10 percent to 5.0 percent on supply of natural gas to fertilizer plants for use as feed stock. Moreover, rate of sales tax on LNG imported by fertilizer manufacturers for use as feed stock is also being exempted.
Sales tax exemption is being granted to Karachi Shipyard Engineering Works Limited on import of machinery, equipment, raw materials, components etc.
Furthermore, sales tax exemption is being granted on import of 21 types of computer parts imported by manufacturers registered with and certified by Engineering Development Board (EDB) for assembling and manufacturing of personal computers and laptops in accordance with quota determined by IOCO.
Exemption of sales tax on import is being granted to plant and machinery on one time basis for setting up of Special Economic Zone and for installation in that zone by zone enterprises to align exemption from sales tax with the provisions of SEZ Act, 2012.