The Federal Board of Revenue (FBR) has dividend country into seven zones for determination of the highest retail price of any brand or variety of fertilizer sold in retail packing. In this regard, the FBR has issued a sales tax general order (STGO) 1 of 2017 here on Wednesday,
Sources said that the Board has divided Pakistan into zones for determination of the highest retail price of fertilizer sold in retail packing for accurate calculation of sales tax. The decision was taken in the meeting of the Board-in-Council regarding notification of zones for determination of highest retail price of fertilizer in retail packing.
Experts said the retail price of items like cement/fertilizer varied from one to another province depending on the cost of transportation and other factors. As a result of fixation of region-wise price, sales tax would be charged on highest retail price of cement sold in retail packing. Maximum price of fertilizer fixed in the region would be considered for the purpose of imposition of sales tax.
Earlier, the highest retail price of cement was fixed for both the zones for the purpose of calculation of sales tax of this item sold in retail packing. In the past, the FBR had divided Pakistan into two zones ie North Zone and South Zone, for determination of the highest retail price of cement sold in retail packing for accurate calculation of sales tax.
As per STGO 1 of 2017 issued by the FBR, the FBR has specified zones and the areas falling therein as mentioned in the Table below for the purpose of determination of the highest retail price of any brand or variety of fertilizer for that zone as sold in retail packing:
Fertilizer/Freight Zones: (Division/Civil districts) Z1: Karachi, Mirpur Khas, Shaheed Benazirabad Division, Hyderabad, Jamshoro, Tando Allayyar, Matiyari, Tando Muhammad Khan, Thatta, Sujawal Civil Districts.
Z2: Sukkur, Larkana, Naseerabad Divisions, Dadu, Sibi, Kohlu, Dera Bugti civil districts.
Z3: Bahawalpur, Rahimyar Khan and Ranjanpur civil districts.
Z4: Multan, Quetta, Zhob, Kalat, Makran Divisions, Bahawalnagar, DG Khan, Muzaffargarh, Layyah, Harnai, Ziarat districts.
Z5: Faisalabad, Sahiwal, Dl Khan divisions, Bhakkar, Mianwali civil districts.
Z6: Lahore Division, Sargodha, Khushab civil district.
Z7: Gujranwala, Rawalpindi, Islamabad, Hazara, Peshawar, Bannu. Kohat, Malakand and Mardan Divisions: FATA, Northern Areas, and Azad Jammu & Kashmir.