Commitment to remove SRO regime honoured

The government has honoured its commitment to remove SRO regime in the Finance Bill (2014-15), the majority of concessions, restrictions and exemptions granted through SRO were proposed to be made part of relevant Act.
According to details, Arshad Shehzad, the renowned Karachi based tax expert upon commenting on legal and procedure amendments of the sales tax and federal excise Acts, has informed Business Recorder on Tuesday the number of exemptions provided under notifications 551(I)/2008 dated 11th June 2008 and notifications 501(i)2013 dated 12th June 2013 on items such pharmaceutical industry, iodised salt, medical equipment, components of energy saver lamps, renewable energy items, raw cotton and oil seeds for sowing etc were transferred to sixth schedule of the Sales Tax Act, 1990.
Likewise zero rating on domestic supplies of petroleum crude oil, certain raw materials for export-oriented industries granted through notification 549(I)/2008 dated 11th June 2008 and zero rating facility for dairy and stationery industry and raw materials on these sectors granted through notification 670(i)/2013 dated 18th June 2013 were transferred into Fifth Schedule of the Sales Tax Act.
Reduced rate of 14 percent sales tax provided to sunflower seeds and canola seed is withdrawn the same is now brought under standard sales tax regime under section 3 of the ST Act and now chargeable to sales tax @ 17 percent. Input tax restriction on certain items such as construction material, paints, electrical goods and sanitary fittings, pipes, wires and cable not directly used in production or manufacturing process, restricted through notification 490(i)/2004 and 450(I)/2013 were also brought and made part of section 8 of the Sales Tax Act, 1990.
Shehzad said the government seems committed to further streamline exemption, concession and restriction. The Finance Minister has announced to form an advisory board to further identify the ways and means to simplify the sales tax regime. He said though some of the restrictions particularly for disallowance of input tax credit reflects conservative approach, over and above things are moving towards right direction, he concluded.