Sales Tax rate on electricity bills of steel melters and re-roller has been enhanced from existing Rs 7 to Rs 9 per unit of electricity from July 1, 2015. According to the SRO NO 484(I)/2015, amendments have been made in Sales Tax (Special Procedures) Rules, 2007 to implement taxation measures of sales tax.
Under the rules, Chapter IX relating to special procedure for processing of refund claims filed by the cotton ginners is proposed to be omitted, as the same has become redundant since the ginned cotton is no more zero-rated, rather it is exempt under the present dispensation.
With a view to rationalising the present concessionary regime of sales tax rates on steel sector following measures are proposed, FBR said.
The FBR said that the sales tax rate for ship-breakers is enhanced from Rs 6,700 per metric ton to Rs 8,000 per metric ton of ship plate.
Other sales tax rates relating to melters and re-rollers using natural gas for their own generation or those paying sales tax on mill size basis, shall be enhanced proportionately, FBR said.
Adjustable sales tax on import @ Rs 5,600 per MT for re-meltable scrap remains continued at the same rate. However, this concession is proposed to be limited to re-meltable scrap of PCT Headings 7204.3000, 7204.4100 and 7204.4990, which actually cover the re-meltable scrap.
The sales tax on local scrap of these PCT headings is also proposed to be subjected to same rate of Rs 5,600 per MT.
The import of compressor scrap, now classified under a new PCT Heading 7204.4940, is subjected to an un-adjustable sales tax @ Rs 5600 per MT.
Wholesaler-cum-retailers falling under Chapter XIII are given waiver from provisions of section 73 of the Act and allowed to issue tax invoice in respect of specified goods subject to extra tax, FBR added.
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