The Federal Board of Revenue (FBR) has zero-rated sales tax on local supply of certain types of irrigation, drainage and agro-chemical application equipment, ie sprinkler equipment, drip irrigation equipment, spray pumps and nozzles. The FBR has amended SRO.549(I)/2008 through a notification issued here on Wednesday.
According to the notification, sales tax at the rate of zero-percent would be applicable on the supply of the said irrigation equipment. Through another SRO.67(I)/2009, the FBR has withdrawn sales tax exemption on the supply of sprinkler equipment, drip equipment, spray pumps and nozzles. Now, the equipment has been brought into the sales tax zero-rating regime.