ISLAMABAD: The government has facilitated manufacturers in obtaining exemption certificates for import of raw material.
The Federal Board of Revenue (FBR) issued salient features to explain amendments to Income Tax Ordinance, 2001 brought through Tax Laws (Second Amendment) Ordinance, 2019.
A major change was introduced under which a manufacturer applies for exemption certificates to the Commissioner Inland Revenue. In case the commissioner unable to approve the request within give timeframe then the exemption certificate would automatically granted.
The FBR explained that in order to facilitate manufacturers, a Commissioner, under the auspices of clause (72B) of Part-IV of the Second Schedule to the Ordinance has the mandate to issue exemption certificate in respect of collection of tax under section 148 of the Ordinance at the import stage in respect of raw materials being imported by industrial undertakings subject to various conditions.
However, no time limit has been prescribed under the law or rules for disposal of such exemption certificate by the Commissioner.
In order to complement efforts being made towards ease of doing business if a Commissioner fails to issue such certificate within the time period prescribed under the Income Tax Rules, 2002 the certificate shall be automatically processed and issued by IRIS and shall be deemed to have been issued by the Commissioner.
However, the Commissioner shall have the mandate to modify or cancel the certificate issued automatically by IRIS on the basis of reasons to be recorded in writing after providing an opportunity of being heard to the taxpayer.