Withholding income tax rates at import stage for tax year 2019

KARACHI: The collector of customs has been empowered to collect withholding income tax from importer of goods.

 

 

 

Under Section 148 of Income Tax Ordinance, 2001, the collector of customs has been empowered to collect withholding tax from importer of goods at the same time and manner as the customs duty is payable in respect of the goods imported.

The Federal Board of Revenue (FBR) in Withholding Tax Card for Tax Year 2019 said that tax to be collected from every importer of goods on the value of goods.

For filer, the tax rate at one percent of the import value increased by customs duty, sales tax and federal excise duty. For non-filer the rate shall be 1.5 of the import value as increased by customs duty, sales tax and federal excise duty.

These rates shall on the following:

(i) Industrial undertaking importing remeltable steel (PCT Heading 72.04) and directly reduced iron for its own use;

(ii) Persons importing potassic of Economic Coordination Committee of the Cabinet’s decision No. ECC-155/12/2004 dated the 9th December, 2004

(iii) Persons importing Urea;

(iv) Manufactures covered under Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O 1125(I)/2011 dated 31st December, 2011.

(v) Persons importing Gold; and

(vi) Persons importing Cotton

(vii) Persons importing LNG

2. Following rates shall apply on persons importing pulses:

Filer: 2 percent of the import value as increased by Custom-duty, sales tax and federal excise duty

Non-filer: 3 percent of the import value as increased by custom-duty, sales tax and federal excise duty.

3. Following rates shall be applicable on commercial importers covered under Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O 1125(I)/2011 dated the 31st December, 2011

Filer: 3 percent of the import value as increased by custom-duty sales tax and federal excise duty.

Non-filer: 4.5 percent of the import value as increased by custom-duty, sales tax and federal excise duty.

3A. Following rates shall apply on persons importing coal

Filer: 4 percent

Non-filer: 6 percent

4. Following rates shall apply on ship breakers on import of ship:

Filers: 4.5 percent

Non-filer: 6.5 percent

5. Following rates shall apply on industrial undertakings not covered under S.Nos 1 to 4:

Filer: 5.5 percent

Non-filer: 8 percent

6. Following rates shall apply on companies not covered under S. Nos 1 to 5:

Filer: 5.5 percent

Non-filer: 8 percent

7. Following tax rate shall apply on persons not covered Under S.Nos. 1 to 6:

Filer: 6 percent

Non-filer: 9 percent

The FBR said that the tax rate shall final for all other than those excluded under S. 148(7)&(8)

Adjustable for a tax year under S. 148(7) in respect of :-

a. Raw material, plant, equipment & parts by an industrial undertaking for its own use;

b. motor vehicle in CBU condition by manufacturer of motor vehicle.

c. Large import houses as defined / explained in 148(7)(d)

d. A foreign produced film imported for the purposes of screening and viewing.

 

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Collection of withholding tax at import stage under Income Tax Ordinance 2001

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