The government has proposed 15 percent value-added tax (VAT) on import and local supply of aircraft, ships with gross tonnage exceeding 15 LDTs and poultry/cattle feeds with all ingredients, under the Federal VAT Act 2010.
Sources told Business Recorder on Sunday that the proposed First Schedule (Exemption) of the Federal VAT Act, 2010 would withdraw sales tax exemption on import and supply of surgical tapes, glass bangles, currency notes, bank notes, shares, stocks/bonds and bricks.
A comparison of the Sixth Schedule of the Sales Tax Act, 1990 and First Schedule of the Federal VAT Act, 2010 further shows that 15 percent VAT would be applicable on import and supply of building blocks of cement including ready mix concrete blocks; silver, in un-worked condition; gold, in un-worked condition; monetary gold; incinerators for waste management and disposal, motorised sweepers and snow ploughs and edible oils and vegetable ghee, including cooking oil, on which federal excise duty is charged, levied and collected by a registered manufacturer or importer.
The First Schedule of the Federal VAT Act, 2010 further withdraws exemption on import and local supply of fruit juices, whether fresh, frozen or otherwise preserved, but excluding those bottled, canned or packaged.
The VAT exemption would continue on unprocessed peas, wheat and wheat flour. For the purpose of First Schedule of the Federal VAT Act, 2010, the term "unprocessed" shall include low value-added activity such as sorting, drying, or bulk packaging, provided the value-addition does not exceed 5 percent of total value of the import or the supply.
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