Withdrawal of SROs-based zero-ratings: FBR s biggest challenge

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Economic Updates - Pak Major Financial News

ISLAMABAD : The Federal Board of Revenue (FBR) is facing the biggest challenge of withdrawing statutory regulatory orders (SROs)-based sales tax zero-rating covering a wide range of items including plant machinery, equipment and scrap.  An analysis of the SROs, issued by the FBR from time to time, showed that sales tax zero-rating facility has been available to a large number of products through SROs/notifications.

Sources told Business Recorder here on Friday that SROs have been extensively used to grant sales tax zero-rating on different items.  A review of SROs showed that different kinds of goods had been extended sales tax zero-rating through notifications of FBR.  SRO-based sales tax zero-rating is available on export of goods exempted under section 13 of the Sales Tax Act, 1990; cotton seeds and oilcake and other residues.

SRO-based sales tax zero-rating is available on plant, machinery and equipment, raw materials and components for manufacturing of zero-rated plant and machinery.  The same facility has also been extended to uncooked poultry meat and milk, flavoured milk, cream, milk and cream concentrated, yoghurt, whey, butter, desi ghee, cheese, processed cheese, sausage and similar products of poultry meat or meat offal, frozen or preserved or meat offal including poultry meat and fish, fat filled milk.

SRO-based sales tax zero-rating is also applicable on the preparations for infant use, soya bean meal, petroleum crude oil and colours in sets, writing, drawing and marking inks, erasers, exercise books, pencils, sharpeners, drawing or mathematical calculating instruments, pens or ballpoint, pencils.

The Board has also used SROs to allow sales tax zero-rating on remeltable scrap, compost (non-chemical fertiliser), energy saver lamps and sprinkler and drip equipment, spray pumps and nozzles.  SRO-based sales tax zero-rating is also applicable on wheel chair, diapers and import and supply of polyethylene and polypropylene for manufacture of mono-filament yarn and net cloth for supplies to green house farming.  Sales tax zero-rating facility is also applicable on other items as specified from different SROs issued from time to time, sources added.

 

Courtesy: Business Recorder


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