Import of black tea: Govt decides to revise structure of duties, taxes
ISLAMABAD: The government has decided to revise duties and taxes structure on the import of black tea in coming budget (2024-25).
According to sources, three proposals are under consideration for revision of duties and taxes on the import of tea to check massive under-invoicing. The massive evasion of duties and taxes on the import of tea would be checked through Finance Bill 2024.
Firstly, the Federal Board of Revenue (FBR) has proposed to revise customs values through a new valuation ruling. Secondly, the FBR has proposed to change customs duty and other taxes rates on the import of tea. Thirdly, the proposal is to fix minimum sales tax value of tea for the purpose of assessment of sales tax.
One of these proposals would be enforced through coming Finance Bill 2024, sources added.
“Black tea imports into Pakistan are normally subjected to a six percent income tax. However, shipments destined for Azad Kashmir are exempted from this levy. Officials received credible intelligence that certain unscrupulous importers were exploiting this exemption to evade taxes on a massive scale”, sources added.
Last year, Directorate General of Customs Valuation Karachi has revised customs values on the import of green tea from Vietnam and China.
Copyright Business Recorder, 2024
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