The Federal Board of Revenue (FBR) is mulling increasing the minimum value of coal for levying and collecting sales tax in coming budget (2015-16). Sources told Business Recorder here on Saturday that upward revision in the minimum value of coal has been proposed through amendment to notification SRO.532 (I)/2008 dated 11th June 2008.
Sources said the government had fixed a minimum value at Rs 1,000 per ton for supply of coal through notification 532(i)/2008 dated 11th June 2008. The international coal prices over the year have increased substantially, but no increase in valuation was made during last six years. The coal prices were declared up to Rs 8,000 per metric ton to minimum of Rs 2,500 per metric ton. The government is therefore, seriously considering increasing the minimum value of the commodity from existing Rs 1,000 per ton to Rs 2,500 per ton to tap the real potential of the sales tax from this product. The mechanism for upward revision in price would however not be applicable as far as Thar Coal project is concerned, the sources concluded.
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