ISLAMABAD: Federal Board of Revenue (FBR) on Wednesday extended relaxation on mandatory printing of retail prices on imported consumer items after receiving several representations from stakeholders.
On the basis of representations, the FBR granted relaxation by issuing sales tax notification.
The FBR said that for the imports from North and South America, if bill of lading date is prior to June 30, 2019, the condition of printing retail price is relaxed up to August 31, 2019, subject to the condition that the importer declares retail price for each of the imported items in terms of Section 2(27) of the Sales Tax Act, 1990, and that the goods are assessed for sales tax on such declared retail price.
FBR said that the retail price, if not printed at import stage, can be printed at the port of import in the prescribed manner.
If that is also not possible, the importer shall undertake to print the retail price after clearance of goods and shall pay sales tax on retail rice which shall not be less than 130 percent of the customs value increased by assessed customs duties, excise duty and other applicable taxes and charges excluding sales tax.
The FBR said that if the phrase ‘in retail packing’ appears against any item/entry in the Third Schedule, the retail price taxation thereon shall not apply if such items are not in retail packing at the time of import.
All other items shall be charged to sales tax on the basis of retail price even if not in retail packing.
Under existing law, the goods being raw materials or intermediary goods, with customs duty rate below 16 percent are excluded from purview of value addition tax under the Twelfth Schedule.
Such items, if imported by a commercial importer, are in such form that the same can be sold to the customer without further manufacturing process, such as tea, spices etc. the same shall be subject to value addition tax.