ISLAMABAD: The government is planning to impose a standard rate of 16 percent sales tax on agriculture diesel engines and other agriculture related machinery, equipment and apparatus in the upcoming budget (2012-2013), Sources told Business Recorder on Monday.
They said that the Federal Board of Revenue (FBR) suggested the revenue generation measure to the Ministry of Finance for consideration in the budget (2012-2013). The sales tax exemption on agricultural machinery, equipment and implements was withdrawn in the previous budget. Similarly, the FBR will charge 10 percent sales tax on import and supply of tractors used for agriculture, from January 1, 2013 till December 31, 2013.
According to FBR's SRO 79 (I)/2012, issued on February 2 this year, three slabs were set for the applicability of reduced rate of sales tax on agricultural tractors falling under Pakistan Customs Tariff (PCT) headings 8701.9020 during 2012, 2013 and 2014.
The sales tax would be applicable on agricultural tractors having engine capacity exceeding 35-HP, but not exceeding 100-HP. Five percent sales tax would be charged on import and supply of agricultural tractors up to December 31, 2012, 10 percent between January 1, 2013 and December 31, 2013. A 16 percent sales tax would be applicable on import and supply of agricultural tractors on and from January 1, 2014. Local manufacturers recommended that agriculture diesel engines should also be liable to sales tax on the pattern of agriculture tractors.
Comments
Comments are closed.