Islamabad, January 2, 2024 – The Federal Board of Revenue (FBR) has extended the deadline for submitting recommendations for the Harmonized System (HS) Code List until January 10, 2024.
This decision was communicated through a circular issued by the FBR on Tuesday, providing stakeholders with additional time to contribute their insights on the proposed HS Code List for input adjustments.
The FBR had initially invited suggestions and recommendations for the HS Code List on December 14, 2023. The extension of the deadline is part of the FBR’s commitment to ensuring comprehensive industry input in the formulation of the HS Code List, which is crucial for aligning input tax adjustments with the raw materials essential to various manufacturing processes.
A tentative HS Code List was released by the FBR earlier, encompassing key sectors vital to the economy. These sectors include Weaving, Dyeing and Printing, Steel Melters/Re-rollers, Oil and Ghee, Chemicals, Cement, Lead and Batteries, as well as Paper and Paper Board. The goal is to create a positive list of inputs, goods, and services associated with each sector, promoting transparency and accuracy in tax adjustments.
The FBR underlined that the compilation of the positive list resulted from extensive consultations with stakeholders, and the list has undergone a thorough review process, incorporating feedback from all concerned quarters. The involvement of industry representatives in this process ensures that the list is reflective of the actual requirements and dynamics of each sector.
Stakeholders, particularly representatives from the identified sectors, are encouraged to carefully review the released list. The FBR had set a previous deadline of December 28, 2023, for stakeholders to provide their recommendations regarding the addition or deletion of any items currently enumerated in the list. This collaborative approach emphasizes the FBR’s commitment to refining tax policies by considering industry-specific requirements.
By actively seeking input from stakeholders, the FBR aims to address potential gaps in the proposed list and make necessary adjustments. This consultative approach ensures that the final HS Code List accurately captures the intricacies of each sector’s reliance on specific raw materials, fostering a tax framework that is fair, transparent, and responsive to business needs.
The release of the HS Code List for tax input adjustment is expected to positively impact businesses by providing clarity and consistency in claiming tax credits on essential raw materials. As the FBR continues to refine its tax policies, this initiative demonstrates a commitment to creating an environment conducive to economic growth and development. Manufacturers and stakeholders are encouraged to actively engage in the extended review process, contributing to the formulation of a more effective and responsive tax regime.
