The Federal Board of Revenue (FBR) has notified 5 percent customs duty and sales tax exemption on the import of a specialised ship, ie, Floating Storage and Re-gasification Unit (FSRU). In this regard, the FBR has issued an SRO.337(I)/2015 here on Thursday.
Sources said that for re-gasification of LNG, terminal operators will have to charter a specialised ship called Floating Storage Re-gasification Unit which is an integral part of the project. It is a vital component required for transferring LNG from LNG carriers, re-gasifying and delivery of RLNG through pipeline. As the FSRU is a specialised ship with LNG receiving, storage and re-gasification facilities and without FSRU Tank, LNG Terminal cannot be operated; therefore, it is to be categorised as plant, machinery and equipment.
Following is the text of the SRO 337(I)/2015 issued here on Thursday.-In exercise of the powers conferred by section 19 of the Customs Act, 1969 (IV of 1969), and clause (a) of sub-section (2) of section 3 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that the following further amendments shall be made in its notification No SRO 678 (I)/2004 dated the 7th August, 2004, namely:
In the aforesaid notification,
(a) in clause (2a), after the word "equipment", the words "including floating storage and Regasification unit" shall be inserted; and;
(b) after clause (2a), the following explanation shall be added, namely,
"Explanation.- For the purpose of this clause, floating storage and Regasification unit shall be deemed to be considered as plant, machinery and equipment of a floating LNG terminal."