FBR allows sugar import at reduced rates of income tax, sales tax

FBR allows sugar import at reduced rates of income tax, sales tax

ISLAMABAD: Federal Board of Revenue (FBR) on Monday allowed import of sugar at reduced rate of income tax and sales tax for the quantity as approved by the government.

The FBR issued SRO 770(I)/2020 and SRO 771(I)/2020 to amend Income Tax Ordinance, 2001 and Sales Tax Act, 1990 for allowed reduced rates of advance income tax at 0.25 percent and sales tax at one percent.

Through SRO 771(I)/2020, the Second Schedule of Income Tax Ordinance, 2001 has been amended.

In the Schedule, in Part- II, after the omitted clause (9A), the following new clause has been inserted, namely:—

“(9AA) In respect of import of white crystalline sugar falling under H.S codes 1701.9910 and 1701.9920 from the 25th day of August, 2020 to the 15th day of November, 2020 (both days inclusive), tax under section 148 shall be collected at the rate of 0.25 percent provided that such imports shall not exceed three hundred thousand metric tons in aggregate, as per mode and manner prescribed by Ministry of Commerce during the said period.”

Earlier, on August 20, 2020, the FBR issued SRO 750(I)/2020 to allow exemption of income tax on sugar import by Trading Corporation of Pakistan.

It said: “The provisions of Section 148, in pursuance of the Cabinet Division in case No. 541/30/2020 dated August 04, 2020, not apply on import by the Trading Corporation of Pakistan of 300,000 metric tons of white sugar having PCT heading 1701.9910, 1701.9920, specification B.”

Through S RO 770(I)/2020, it is allowed:

The imported white crystalline sugar, falling in PCT headings 1701.9910 and 1701.9920, shall be chargeable to sales tax under clause (b) of sub-section (1) of section 3 of the Sales Tax Act, 1990, at the rate of one percent; and

The exemption shall be applicable to white crystalline sugar to be imported during the period from 25th August, 2020 to 30th November, 2020 (both days inclusive), as per quantity, quality , mode and manner determined by the Ministry of Commerce and Textile, Government of Pakistan; and

The imported white crystalline sugar falling in PCT headings 1701.9910 and 1701.9920 shall also be exempt from payment of minimum value addition tax as specified in the Twelfth Schedule to the Sales Tax Act, 1990.

Earlier, the FBR issued SRO 751(I)/2020 dated August 20, 2020 to exempt whole of sales tax on import of 300,000 metric tons of white sugar (PCT 1701.9910, 1701.9920, specification B as per PSQCA standards) by Trading Corporation of Pakistan.