Importers advised to pay sales tax on value addition

The Collectorate of Customs (Appraisement) has advised commercial importers to pay sales tax on value addition on all imports made by them. In case of short payment or non-payment the tax amount may be paid immediately to avoid any action against them.
A circular issued by the collectorate on July 20 said that under Customs Administrative Reform Project (Care) some importers and their agents were not paying sales tax on value addition at the time of import as required under Notification SRO 522(1)/2005 dated June 6, 2005.
It said that under the said notification it is the sole responsibility of commercial importers to pay sales tax on value addition and non payment will render the defaulters to penal action under Sales Tax Act, 1990, said the circular, adding that if a case of non payment of Sales Tax on value addition is reported legal proceedings shall be initiated against the commercial importer and his clearing agent without further notice or warning.
The circular asked the commercial importers and their clearing agents to ensure that payment of sales tax on value addition has been made on their all present and past imports and in case of short payment or non-payment the tax may be paid immediately to avoid any action.