The Federal Board of Revenue has issued the list of 126 items, raw materials and inputs on which sales tax will be charged at reduced rate of 5 percent for five zero-rated export sectors or such items/goods would be exempted on the import and local supply stages, depending on the conditions of the SRO.1012(I)/2011.
The FBR has notified the decision through an SRO.1012(I)/2011 dated November 4, 2011 to issue the revised sales tax zero-rating regime for five export-oriented sectors - textile, leather, carpets, surgical and sports goods and introduced a single 5 percent reduced rate for these industries.
According to the notification, the FBR has notified goods falling under the PCT heading numbers including the goods or class of goods mentioned in the conditions stated in this notification, to be the goods on which sales tax shall, subject to the said conditions, be exempt on the supply and import thereof, or charged at zero-rate or, as the case may be, at the rate of five per cent to the extent and in the manner as specified in the aforesaid conditions.
Following are the names of items liable to lower rate of 5 percent sales tax or exempt as per conditions of the S.R.O. 1012(I)/2011: Leather and articles thereof including artificial leather footwear Pakistan Customs Tariff (PCT) headings of 41.01 to 41.15, 64.03, 64.04, 6405.1000, 6405.2000 and other respective headings, textile and articles thereof excluding monofilament, sun sheding, nylon fishing net, other fishing net, rope of polyethylene and rope of nylon, tyre cord fabric Chapter 50 to Chapter 63 and other respective headings excluding PCT headings 5407.2000, 5608.1100, 5608.1900, 5608.9000 3. The list also included carpets, sports goods and other respective headings.
Other items included surgical goods respective headings 57.01 to 57.05. Others, mucilages and thickeners, whether or not modified, derived from locust beans, locust bean seeds or guar seeds. cotton linter, emery powder and grains, magnesium oxide, coning oil, spin finish oil, antimony oxide, sodium bromate, sodium sulphide and sodium hydrogen sulphide, sodium dithionite, sodium sulphite and sodium hydrosulphide, phosphinates (hypophosphite) and phosphonates( phosphates), sodium dichromate, hydrogen per oxide, P-Xylene, Trichloroethylene, Ethylene Glycol (MEG), Di-ethylene glycol, ethyl glycol, Tri-ethylene Glycol, glutar aldehyde, formic acid, sodium formate, acetic acid, sodium acetate, acrylic acid and its salts, esters of methacrylic acid, oxalic acid, pure terephthalic acid (PTA), glycolic acid and their esters, other phosphoric esters and their salts, dyes intermediates, DMF (dimethyl formamide), acrylonitrile, other organic derivatives of hydrazine or of hydroxylamine, tanning extracts of vegetable origin; tannins and their salts, ethers, esters & other derivatives, synthetic organic tanning substances, inorganic tanning substances, tanning perpetrations, whether or not containing natural tanning substances; enzymatic preparations for pretanning, disperse dyes and preparations based thereon, acid dyes and preparation based thereon, basic dyes and preparations based thereon, direct dyes and perpetrations based thereon, Indigo blue, vat dyes and preparations bases thereon, reactive dyes and perpetrations based thereon, pigments and perpetrations based thereon, dyes, sulphur, dyes, synthetic, synthetic organic products of a kind used as fluorescent, brightening agents, other synthetic organic colouring matter, pigments and preparations based on titanium dioxide, other colouring matter and other preparations, granules, flakes, powder of glass (others), prepared water pigments of a kind used for finishing leather, cationic surface active agents, non-ionic surface active agents, surface active preparations and cleaning preparations excluding detergents, preparations for the treatment of textile material, leather, fur skins or other material, spin finish oil, artificial waxes and prepared waxes, other artificial waxes, other glues (printing gum), shoe adhesives if imported directly or purchased from the local registered manufacturers of shoe adhesives by the manufacturers of leather or sports goods for their own use. Hot melt adhesive if imported directly or purchased from the local registered manufacturers of hot melt adhesives by the manufacturers of leather or sports goods for their own use, enzymes, photographic film, with silver halide emulsion (for textile use), sensitising emulsions (for textile use), fungicides for leather industry, preparation of a kind used in textile or like industry, preparation of a kind used in leather or like industries, compound.
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