SUNDAY DECEMBER 04: Zero-rating regime: FBR finalising revised list of 128 items, inputs

ISLAMABAD: The Federal Board of Revenue (FBR) has drafted a revised list of 128 items, raw materials and inputs on which sales tax will be charged at reduced rate of 5 percent or standard rate of 16 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 notification to be issued in coming days.
Sources told Business Recorder here on Saturday that the FBR is in the process of finalising the revised sales tax zero-rating regime for five export-oriented sectors - textile, leather, carpets, surgical and sports goods and input of the commercial importers and other stakeholders would be taken into account in this regard. The FBR had notified list of 126 items as per superseded SRO.1012(I)2011 and the new draft of the notification has mentioned names of 128 items. A major change in the new notification is the introduction of the standard rate of 16 percent sales tax for the commercial importers, which would only be applicable in view of conditions of the proposed notification.
Under the draft notification, the FBR will notify goods falling under the PCT heading numbers including the goods or class of goods mentioned in the conditions stated in the new notification, to be the goods on which sales tax shall, subject to the laid down 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 or 16 percent wherever applicable to the extent and in the manner as specified in the conditions.
Following are the names of items liable to sales tax or exempt as per conditions of the proposed S.R.O: Leather and articles thereof including artificial leather footwear, textile and articles thereof excluding monofilament, sun shading, nylon fishing net, other fishing net, rope of polyethylene and rope of nylon, tyre cord fabric, carpets, maize (corn) starch, mucilages and thickness, whether or not modified, derived from locust beans locust bean seeds or guar seeds, sports goods, surgical goods, emery powder/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 (hypophosphites) and phosphonates (phosphates), sodium dichromate, hydrogen peroxide, 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 pre-_tanning, disperse dyes and preparations based thereon, acid dyes & preparations based thereon, basic dyes & preparations based thereon, direct dyes & preparations based thereon, indigo blue, vat dyes & preparations based thereon, reactive dyes and preparations based thereon, pigments and preparations 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, electro polishing chemicals, other glues (printing gum), shoe adhesives, hot melt adhesive, 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 plasticizers for rubber or plastics, antimony triacetate, palladium catalyst, electrolyte salt, polymers of vinyl acetate (in aqueous dispersion), vinyl acetate copolymers: in aqueous dispersion, polymers of vinyl alcohol, other vinyl polymers, other acrylic polymers, acrylic polymers in primary forms, polyethylene terephthalate-yarn grade, and its waste, nylon chips (PA6), polyurethanes, silicones in primary form, cellulose nitrates non-plsticised, other cellulose nitrates, carboxymethyl cellulose and its salts, alginic acids, its salts and esters, nylon tubes, artificial leather, synthetic leather grip, natural rubber latex, technical specialised natural rubber, rubber latex, synthetic rubber sbr 1502 latex, butadiene rubber, thermo-plastic rubber (T.P.R.), vulcanised rubber thread and cord, leather shearing-finish leather with wool, articles of apparel and clothing accessories of fur skin, artificial fur and articles thereof, english willow cleft (wood), cork granules, cork sheet, satin finishing wheels, carbon fiber, glass fiber sleeves, forging of surgical and dental instruments, nickel rotary printing screens, hooks for footwear, eyes and eyelets for footwear, tubular or bifurcated rivets, strings, bladders and covers of inflatable balls, press-fasteners, snap fasteners and press studs, buttons of plastics not covered with textile material, buttons of base metal not covered with textile materials, studs, buttons, slide fasteners, wood-pulp (dissolving grade), cotton linter and sequins.