ST zero-rating facility given on yarn input

The Federal Board of Revenue (FBR) has announced sales tax zero-rating facility on the import and supply of polyethylene and polypropylene used in the local manufacturing of mono filament yarn and net cloth, says a notification issued on Monday.
In order to promote local manufacturing of mono filament yarn and net cloth, the import and supply of raw materials of these products, ie polyethylene and polypropylene falling under Pakistan Customs Tariff (PCT) heading 3901.1000, 3901.2000 and 3902.1000 is zero-rated for the purpose of sales tax. According to S.R.O. 769(I)/2009, this facility will be available to manufacturers duly registered in sales tax, having in-house manufacturing facility and the supplies are made to green house farming at zero percent sales tax.