The Central Board of Revenue (CBR) has clarified that SRO 1021(I)/2006 of October 2, 2006, has prescribed minimum cost and freight (C&F) per unit value for levying sales tax at the time of import. Accordingly, the amounts mentioned therein denote the value on which sales tax shall be calculated at the rate of 15 percent.
It is not the amount of duty or tax, as has been misconstrued by some dealers of old and used personal computers and laptops, the Board said.
Through SRO 1021(I)/2006, the Board has fixed the value of personal computers (PCs) and monitors for the purpose of sales tax assessment at import stage; provided that where the value of import is higher than the value fixed by the Board, the value of goods shall be the value at which the import is made.
Responding to the queries, the CBR further clarified that the decisions to fix minimum value of imported personal computers and notebooks was aimed at providing level playing field to the local IT industry, which has suffered badly in the past due to under-invoicing of imported computer hardware, which is still being sold in the local market at much higher price than the one declared for the purpose of assessment of customs duty and sales tax.
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