Petroleum products, raw material, intermediary goods excluded from the ambit of 3.0pc minimum value addition tax
KARACHI: The Federal Board of Revenue (FBR) has notified that all petroleum products imported by oil marketing companies (OMCs) have been excluded from the ambit of minimum value-addition tax of 3.0 percent.
Earlier only those imported petroleum products were exempted from minimum value addition tax, whose prices were regulated by the authority. Now all petroleum products imported by OMCs are excluded.
The provisions relating to 3.0 percent value addition tax on imported goods have been transposed from the special procedure rules to the newly inserted Twelfth Schedule and necessary enabling amendments have been made to sub-section (2) of section 7A.
Earlier manufacturers importing goods for in-house consumption were excluded from this levy. Now, all raw materials and intermediary goods meant for use in an industrial process which are subject to customs duty at a rate less than 16% ad valorem under First Schedule to the Customs Act have been excluded, whether imported by manufacturers or commercial importers.
Cellular mobile phones or satellite phones have also been added to exclusions. Moreover, in view of withdrawal of exemption on gold and silver, in unworked condition, the exclusion from 3.0 percent tax has been provided to these items.