The Federal Board of Revenue has exempted plant, machinery and equipment used in production of bio-diesel from customs duty. The board has amended SRO.575(I)/2006 through a notification issued on Thursday.
On a summary moved by the Ministry of Water and Power on use of bio-diesel as an alternative fuel, the Economic Coordination Committee (ECC) of the Cabinet has allowed exemption of whole of customs duty and sales tax on import of plant, machinery, equipment and specific items used in production of bio-diesel. The ECC decision has been implemented through an SRO 474(I)/2008, allowing exemption to aforementioned goods used in production of bio-diesel.
According to the notification, exemption of duty would be available on the import of these items on fulfilment of different conditions. The Alternative Energy Development Board (AEDB), Islamabad shall certify in the prescribed manner and format that the imported goods are bona fide project requirement.
The goods shall not be sold or otherwise disposed of within a period of five years of their import except with the prior approval of the FBR and payment of customs duties and taxes leviable at the time of import.
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