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The Federal Board of Revenue (FBR) has withdrawn 2 percent extra sales tax levied on the commercial importers of pesticides. The board has amended SRO.645(I)/2007 through a notification issued on Thursday to remove double taxation on a single category of commercial importer.
According to FBR, the commercial importers of pesticides were paying extra 2 percent sales tax at the import stage under SRO 645(I)/2007 of June 27, 2007 along with all other commercial importers.
On the other hand, they also had to pay further 2.25 percent sales tax under SRO 645(I)/2006 of June 21, 2006, which requires payment of this additional tax by all importers, including manufacturers and commercial importers, of pesticides and their active ingredients and exempt the same levy of sales tax on further supplies.
The SRO 91(I)/2008 of January 31, 2008 has removed this anomaly and excluded commercial importers from payment of 2 percent sales tax under SRO 645(I)/2007.

Copyright Business Recorder, 2008

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