KARACHI: The Federal Board of Revenue (FBR) has notified reduced rate of income tax i.e. 1.5 percent on the payments received against tea, spices, salt, dry milk, sugar, pulses, wheat flour and ghee supplied to Utility Stores Corporation of Pakistan till June 30, 2020.
However, this reduced rate is applicable to supply of tea, spices, salt and dry milk which are sold under a brand name.
Income Tax SRO 287(I)/2020 issued on April 7th notified amendment in the Second Schedule of Income Tax Ordinance, whereby rate of tax under Clause (a) of Sub-section (1) of Section 153 in case of a person, other than a company, as a recipient of payments for goods supplied to Utility Stores Corporation of Pakistan shall be 1.5 percent of the gross amount of payment in respect of supply of tea, spices, salt, dry milk, sugar, pulses, wheat flour and ghee for the period commencing from the date of issuance of this notification till June 30, 2020.
Moreover, the above mentioned provision shall not be applicable where rate of tax under clause (a) of sub-section (1) of section 153 is less than 1.5 percent of the gross amount of payment under any provisions of the Ordinance.
The Federal Board of Revenue (FBR) also notified exemption from 2.0 percent advance income tax for person importing pulses till June 30, 2020.
Through Customs SRO 288(I)/2020 issued on April 7th, FBR has notified exemption from 2.0 percent additional Customs duty on the import of oil seeds and edible oil falling under