ISLAMABAD: Federal Board of Revenue (FBR) has proposed to relax the condition of disposal of plant and machinery by export units at zero percent of duty and taxes to five years as compared with prevailing 10 years.
The FBR on Wednesday issued SRO 747(I)/2019 to proposed amendments in the Export Oriented Units and Small and Medium Enterprises Rules, 2008.
Through proposed amendment the FBR allowed the retaining imported goods including plant and machinery for a maximum period of five years as against prevailing ten years.
The FBR through SRO 327(I)/2008 notified “The Export Oriented Units and Small and Medium Enterprises Rules, 2008” to facilitate the exporters and promote the exports.
The FBR proposed that there will be no duty or tax if items imported by export oriented unit is sold or otherwise disposed of after five years from the date of importation. The existing retaining period is ten years.
The FBR proposed that there will be full duty and tax if sold or otherwise disposed of before the expiration of three years from the date of importation. The existing period of attracting full duty and taxes is five years.
It is proposed that there will be 75 percent duty and taxes if sold or otherwise disposed of after three and before four years from the date of importation. The existing period for this category is ‘after five and before seven and half years’ from the date of importation.
The FBR also proposed to impose 50 percent of duty and taxes if sold or otherwise disposed of after four and before five years from the date of importation. The existing time period for this category is ‘after seven and half years and before ten years.’
In the latest SRO the FBR also proposed to amend the word ‘Collector’ with the Regulatory Authority. The FBR also defined the regulatory authority is the additional collector of customs designated by the collector of customs as the regulatory authority in relation to an export oriented unit, in whose jurisdiction the place of business or manufacturing unit of the export oriented unit applicant, duly registered under the Sales Tax Act, 1990, is situated.
