The Federal Board of Revenue would present Sales Tax Amendment Bill 2011 before the National Assembly Standing Committee on Finance here on Friday (today) for continuation of sales tax levy on agricultural tractors. It is learnt here on Thursday that the FBR team headed by its Chairman Salman Siddiq would present the Sales Tax Amendment Bill 2011 before the committee to introduce amendment in the existing Sales Tax Act 1990.
On March 15, 2011, President Asif Ali Zardari promulgated three Ordinances to take new taxation measures of Rs 53 billion by imposing sales tax on fertilisers, agricultural tractors, pesticides, plant, machinery and equipment including its parts, and imposed 15 percent income tax surcharge for Tax Year 2011 and raised special excise duty (SED) from 1 to 2.5 percent.
Through, Sales Tax (Amendment) Ordinance, 2011 issued on March 15 2011, the amendment in the Sixth Schedule of the Sales Tax Act, 1990 was introduced for imposition of sales tax on agricultural tractors. As the Ordinance remained intact for a period of three months, the Finance Act 2011 has not incorporated this amendment for continuation of sales tax on agricultural tractors. Now, through a fresh Sales Tax Amendment Bill 2011, the FBR would seek endorsement to make this amendment (sales tax on agricultural tractors) part of Sales Tax Act 1990.
Tax authorities would also present the status of revenue collection during 2011-12 and measures to achieve the ambitious revenue collection target of Rs 1952 billion during 2011-2012. Following is the text of the Sales Tax (Amendment) Ordinance, 2011 issued on March 15 2011 for withdrawal of sales tax exemption on agricultural tractors:
Sales Tax (Amendment) Ordinance, 2011: WHEREAS it is expedient further to amend the Sales Tax Act, 1990, for the purposes hereinafter appearing; AND WHEREAS the Senate and the National Assembly are not in session and the President is satisfied the circumstances exist which render it necessary to take immediate action: NOW, THEREFORE, in exercise of the powers conferred by clause (1) of Article 89 of the Constitution of the Islamic Republic of Pakistan, the President is pleased to make and promulgate the following ordinance:-