While taking a major relief measure the Federal Board of Revenue (FBR) has decided to exempt sales tax on the import and local supply of cotton and ginned cotton. Sources told Business Recorder here on Thursday that the FBR will issue a notification in next few days to implement the decision.
The decision would facilitate clearance of stuck up consignments of cotton at ports and also improve local supply of cotton and ginned cotton. Recently, the cotton and ginned cotton were subjected to 2 percent sales tax due to issuance of a notification of 2 percent sales tax on five export sectors.
The FBR has also decided to introduce some procedural amendments in the SRO.154(I)2013 on the genuine problems faced by the stakeholders in discharging their sales tax liabilities. The SRO154 had imposed a tax on full value of supply of the product at every stage from sizing, weaving to finishing. Now it has been amended that the processing charges shall only be to the extent of conversion or processing charges and not the full value of supply for the entire chin. The case was specially represented by Aptma.
The amendment would facilitate the entire supply chain of textile for payment of sales tax under SRO.154(I)2013. Ghauar Ijaz Group Leader APTMA, Central Chairman Aptma Ahsan Bashir and Chairman Aptma Punjab Shahzad Ali Khan made special efforts to ensure amendment in the SRO.154(I)2013. They held several meetings with the FBR to plead their case.
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