The Central Board of Revenue (CBR) has conveyed to Pakistan Jute Mills Association (PJMA), Karachi, that sales tax at the rate of zero percent would be applicable on import and supply of jute and its products, including sacks/bags.
In a clarification issued to the association on Sunday, the CBR observed that raw jute, falling under ''''Pakistan Customs Tariff (PCT) heading 5303.1010''''; jute yarn, (PCT heading 5307.1000); woven fabrics of jute, (PCT heading 5310.9010) and sacks/bags of jute (PCT heading 6305.1000) are chargeable to sales tax at the rate of zero percent under SRO 621(I)/2005 of June 17, 2005. This zero-rating of sales tax would be applicable on the items irrespective of whether the same is imported or supplied to the registered persons concerning textile industry or any other industry including the jute industry.
Official sources told Business Recorder that SRO 621(I)/2005 deals with the list of raw materials/finished products liable to sales tax at the rate of zero percent on the import and supply of items belonging to textile sector, leather, sports goods, surgical and carpets industry.
SRO 621(I)/2005 was issued on the recommendations of textile industry, All Pakistan Textile Manufacturers Association (Aptma) and Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
However, the CBR has issued the clarification on the request of the concerned association to specify jute products liable to zero percent sales tax.
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