Minimum tax regime withdrawn on commercial imports

KARACHI: The government has withdrawn the five percent minimum tax applicable on importer of finished goods.
Through Finance Supplementary (Second Amendment) Bill, 2019, which was presented in the National Assembly on Wednesday it is proposed to delete clause (a) of Sub-Section 8 of Section 148 to Income Tax Ordinance, 2001.
The existing clause said that the tax required to be collected from a person under this section shall be minimum tax for a tax year on the import of
(a) goods where goods are sold in the same conditions as they were when imported:
Provided that the minimum tax payable under the clause shall be five percent of the import value as increased by customs duty, sales tax and federal excise duty.
With the proposed exclusion the tax required to be collected under this section shall become final tax.
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