KARACHI: Federal Board of Revenue (FBR) has allowed duty free import of plant and machinery by industrial and manufacturing units.
The exemption has been allowed through Finance Supplementary (Second Amendment) Act, 2019 under Chapter 84 and 85 of Customs Act, 1969.
The FBR said that plant and machinery shall be allowed zero percent customs duty but it should be excluded consumer durable goods and office equipment as imported by Greenfield industries, intending to manufacture taxable goods, during their construction and installation period.
The exemption of customs duty is available on fulfillment of following conditions, namely:
(a) the importer is registered under the Sales Tax Act on or after the first day of July, 2019
(b) the industry is not established by splitting up or reconstruction or reconstruction of an undertaking already in existence or by transfer of machinery or plant from another industrial undertaking in Pakistan.
(c) exemption certificate issued by the commissioner Inland Revenue having jurisdiction; and
(d) The goods shall not be sold or otherwise disposed of without prior approval of the FBR and the payment of customs duties and taxes leviable at the time of import.
Good
Is this exemption only for new company or it will also facilitate to old company
And what about for those whose company name is old but plant is new