FBR issues updated withholding tax rates for imported goods

ISLAMABAD: Federal Board of Revenue (FBR) has issued updated withholding tax rates for imported goods. The FBR issued withholding tax card 2020-2021 after incorporating amendment made to Income Tax Ordinance, 2001 through Finance Act, 2020.

The FBR issued updated withholding tax rates applicable for imported goods under Section 148 of Income Tax ordinance, 2001.

The withholding tax shall be collected by collector of customs from importer of goods at the same time and manner as the customs duty is payable in respect of the goods imported.

The following category of importers shall pay withholding tax rate at one percent of the import value as increased by customs duty, sales tax and federal excise duty and two percent on those importers on appearing on the Active Taxpayers List (ATL):

(i) Persons importing goods classified in Part-I of the Twelfth Schedule

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

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

(iv) Persons importing Urea;

(v) 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.

(vi) Persons importing Gold; and

(vii) Persons importing Cotton

(viii) Persons importing LNG

Two percent of the import value as increased by Custom duty, sales tax and federal excise duty and four percent on persons not appearing on ATL shall apply on (ix) persons importing goods classified in Part-II of the Twelfth Schedule.

5.5 percent of the import value as increased by Custom duty, sales tax and federal excise duty and 11 percent on persons not appearing on ATL on (X) persons importing goods classified in Part-III of the Twelfth Schedule.

Industrial undertaking importing Plastic raw material (PCT Heading 39.01 to 39.12) for its own use shall pay 1.75 percent withholding tax of the import value as increased by Custom-duty, sales tax and federal excise duty and 3.5 percent for persons not appearing on the ATL.

  1. In case of manufacturers covered under rescinded Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 as it stood on the 28th June, 2019 on import of items covered under the aforementioned S.R.O. The tax rate shall be one percent and two percent in case persons not appearing on the ATL.
  2. In case of persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan, as certified by the Drug Regulatory Authority of Pakistan. Such persons shall pay four percent and 8 percent in case persons not appearing on the ATL.
  3. Persons Importing Pulses shall pay 2 percent of the import value as increased by Custom-duty, sales tax and federal excise duty and four percent in case persons not appearing on the ATL.
  4. 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 shall pay 3 percent of the import value as increased by custom-duty sales tax and federal excise duty and six percent in case persons not appearing on the ATL.

Commercial Importer importing Plastic raw material (PCT Heading 39.01 to 39.12) for its own use shall pay 4.5 percent of the import value as increased by Custom-duty, sales tax and federal excise duty and 9 percent in case persons not appearing on the ATL.

  1. Persons importing coal shall pay 4 percent and 8 percent in case persons not appearing on the ATL.
  2. Persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan as certified by the Drug Regulatory of Pakistan shall pay 4 percent and 8 percent in case persons not appearing on the ATL.
  3. Ship breakers on import of ship shall pay 4.5 percent and 9 percent in case persons not appearing on the ATL.
  4. Industrial undertakings not covered under S.No 1 to 6 shall pay 5.5 percent and 11 percent in case persons not appearing on the ATL.
  5. Companies not covered under S. Nos 1 to 9 shall pay 5.5 percent and 11 percent in case persons not appearing on the ATL.
  6. Persons not covered Under S.Nos1 to 10 shall pay 6 percent and 12 percent in case persons not appearing on the ATL.

On Import of Mobile Phones by any Person (individual, AOP, Company):

Withholding Tax Regime

C&F Value In CBUIn CKD/SKD in USD ($) )
Up to 30 except smart phonesRs70Rs0
Exceeding 30 and up to 100 and smart phones up to 100Rs100Rs0
Exceeding 100 and up to 200Rs930Rs0
Exceeding 200 and up to 350Rs970Rs0
Exceeding 350 and up to 500Rs3,000Rs5,000
Exceeding 500Rs5,200Rs11,500

Persons not appearing in the Active Taxpayers’ List :The applicable tax rate is to be increased by 100% (Rule-1 of Tenth Schedule to the Ordinance).

Section 148(7)

The tax required to be collected under this section shall be minimum tax on the income of importer arising from the imports subject to sub-section (1) of this section and this sub-section shall not apply [i.e Adjustable] in the case of Import 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.

The tax collected under this section at the time of import of ships by ship-breakers shall be minimum tax. Section 148(8A).

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