Separate rates of import tax: FBR asks project director to amend WEBOC system

The Federal Board of Revenue (FBR) has directed the Project Director Web-Based One Customs clearance system (WEBOC) to amend the system to ensure collection of separate rates of withholding tax on the imports made by filers and non-filers during clearance of imported consignments. In this regard, the FBR has issued instructions to the Project Director WEBOC here on Monday.
According to the FBR, it should be ensured that necessary amendments are made to the system to incorporate the changes made through Finance Act, 2015 on account of separate rates of tax deduction for filers/non filers as per part II of the First Schedule to the Income Tax Ordinance 2001.
The FBR said that the issue is related to the introduction of separate rates for filers and non filers on deduction of Income Tax under Section 48 of the Income Tax Ordinance, 2001. The Finance Act 2015 has introduced separate rates of deduction of Income tax at import stage under Section 148 of the Income Tax Ordinance 2001 for filers and non- filers. The revised rates of collection as per Part II of First Schedule to the Income Tax Ordinance 2001are as under:
Industrial undertaking importing remittable steel (PCT Heading 72.04) and directly reduced iron for its own use. For filers, the rate of withholding tax is 1% of the import value as increased by customs-duty sales tax and federal excise duty. In case of non-filer, the rate is 1.5 percent of the import value as increased by customs duty, sale tax and federal excise duty.
Persons importing potassic fertilisers in pursuance of Economic Co-ordination Committee of the cabinet's decision No ECC.155/12/2004 dated the 9th December, 2004; persons importing urea; manufacturers covered under Notification No SRO.1125(I)/2011 dated the 31st December, 2011 and importing items covered under SRO.1125(I)/2011 dated 31st December, 2011; persons importing cotton; and designated buyer of LNG on behalf of Government of Pakistan, to import LNG. For filers, the rate of withholding tax is 1 percent of the import value as increased by customs-duty sales tax and federal excise duty. In case of non- filers, the rate is 1.5 percent of the import value as increased by customs duty, sale tax and federal excise duty.
In case of persons importing pulses, the filers would pay 2 percent of the import value as increased by customs-duty, sales tax and federal excise duty. In case of non-filers withholding tax rate of 3 percent would be applicable of the import value as increased by customs-duty, sales tax and federal excise duty. In case of commercial importers covered under Notification No SRO.1125(I)/2011 dated the 31st December, 2011 and importing items covered under SRO.1125(I)/2011 dated the 31st December, 2011, the rate of withholding tax for filers is 3 percent of the import value as increased by customs-duty sales tax and federal excise duty. For non- filers, withholding tax at the rate of 4.5 percent of the import value as increased by customs duty, sales tax and federal excise duty.
In case of Ship breakers on import ships, the rate of withholding tax for filers is 4.5 percent and non-filers 6.5 percent. For industrial undertakings, the rate of withholding tax for filers is 5.5 percent and non-filers 8 percent. In case of companies (not covered under serial number 1 to 5), for filers 5.5 percent and non-filers 8 percent, the FBR added.