Sugar, raw material used for manufacturing of pharmaceutical products, medical/surgical equipment and substances registered as drugs under the Drugs Act, 1976 would keep on enjoying sales tax exemption in 2014-15. Sources said on Friday that transposition of SRO 551(1)/2008, dated 11-06-2008 with certain changes has been done in budget (2014-15).
SRO 551(1)/2008 grants exemption of sales tax on import and local supply to a number of goods such as raw material for pharmaceutical industry, iodised salt, medical equipment, components of energy saver lamps, renewable energy items, raw cotton and oil seeds for sowing etc. In view of their essential nature, it is proposed to continue exemption on the following goods listed at S. No 3,4, 5,7, 11, 13. 14, 16, 27 and 29 by transferring them to the Sixth Schedule of the Sales Tax Act, 1990:
Raw and pickled hides and skins; machinery, equipment and materials for use in Export Processing Zones; ships of gross tonnage of less than 15 Light Displacement Tonnage (LDT); substances registered as Drugs under the Drugs Act, 1976; raw material for manufacture of pharmaceutical products; Halal edible offal of bovine animals; iodised salt; components of energy saver lamps; white crystalline sugar and certain medical and surgical equipments.
Sales tax exemption on import of re-meltable scrap (S.No 31) is proposed to be deleted. Import of oilseed for sowing, and raw and ginned cotton (S. No 10 and 33) are proposed to be charged to 5% reduced rate of sales tax by transferring them to the newly introduced Eighth Schedule to the Sales Tax Act, 1990. However, local supply of raw and ginned cotton shall remain exempt by transferring it to the Sixth Schedule. Moreover, local supply of sprinkler equipment, drip equipment and spray pumps and nozzles having agricultural usage shall also remain exempt from sales tax, they added.
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