ISLAMABAD: Federal Board of Revenue (FBR) has devised an improved system of issuance of exemption certificates under Section 148 of the Income Tax Ordinance-2001, particularly for the import of raw material and intermediaries used by industries.

This intended system was to be based on Automated Risk Based Mechanism to reduce processing time and in issuance of exemption certificates thereby avoiding unnecessary delays costing the importers,said a press release issued by FBR here on Thursday.

In this regard and automated procedure has been planned for public/private limited companies and all other persons.

The automated system will require submission of check listed information from the user.

FBR has further devised a procedure which has to be adopted for issuance of exemption under Section-148 for import of raw material.

Under the new procedure, the Commissioner will issue exemption certificate in case of public limited company within seven (07) days, in case of private limited company within ten (10) days and in case of all other persons within fifteen (15) days of filing of application through an automated system.

If the commissioner fails to take action on the application within the above mentioned time limits, the system will issue exemption certificates to the taxpayer.

However, such exemption certificate issued to all persons, except public limited and private limited companies, shall be provisional.

The system will not issue exemption certificate if an assignment has been issued by the Commissioner within seven (07) days of filing of the application, CPR of discharge of tax liability is not available in the system, annexure to SRO 717(I)/2014 has not been filled in the system and the taxpayer has applied for substitution of raw material to be imported.

FBR has added that before the launch of this system and to improve the quality of the decision making through the involvement of all stakeholders, FBR requests for valuable input from all stakeholders and general public to improve this system.