Withholding Tax Card: Tax rates on imports of goods for ATL, non-ATL persons

KARACHI: Federal Board of Revenue (FBR) has issued withholding tax rates on imports of goods for persons appearing on Active Taxpayers List (ATL) and for persons not on ATL under Section 148 of Income Tax Ordinance, 2001 for tax year 2019/2020 effective from July 01, 2019.

According to documents made available to PkRevenue.com the FBR said that the collector of customs shall collect the withholding tax rate at the prevailing rates from persons on the Active Taxpayers List (ATL) and double amount of tax from those persons, who are not on the ATL.

The FBR said that 1 percent of the import value increased by Custom duty, sales tax and federal excise duty shall be collected. And in case persons not appearing in the Active Taxpayers’ List : The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 2 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

Tax to be collected from every importer of goods on the value of goods.

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

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

(iii) Persons importing Urea;

(iv) 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.

(v) Persons importing Gold; and

(vi) Persons importing Cotton

(vii) Persons importing LNG.

Minimum Tax [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)]

Industrial undertaking importing Plastic raw material (PCT Heading 39.01 to 39.12) for its own use, the tax rate shall be

1.75 percent of the import value as increased by Custom-duty, sales tax and federal excise duty

Persons not appearing in the Active Taxpayers’ List :

The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 3.5 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

2. Persons importing pulses shall pay 2 percent of the import value as increased by Custom-duty, sales tax and federal excise duty.

Persons not appearing in the Active Taxpayers’ List :

The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 4 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

3. 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.

Persons not appearing in the Active Taxpayers’ List :

The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 6 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

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.

Persons not appearing in the Active Taxpayers’ List :

The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 9 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

4. Persons importing coal shall pay 4 percent.

Persons not appearing in the Active Taxpayers’ List :

The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 8 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

5. Persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan as certified by the Drug Regulatory of Pakistan, shall pay 4 percent.

Persons not appearing in the Active Taxpayers’ List :

The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 8 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

6. Ship breakers on import of ship shall pay 4.5 percent.

Persons not appearing in the Active Taxpayers’ List :

The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 9 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

7. Industrial undertakings not covered under S.No 1 to 6 shall pay 5.5 percent.

Persons not appearing in the Active Taxpayers’ List :

The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 11 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

8. Companies not covered under S. Nos. 1 to 7 shall pay 5.5 percent.

Persons not appearing in the Active Taxpayers’ List :

The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 11 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

9. Persons not covered Under S.Nos1 to 8 shall pay 6 percent.

Persons not appearing in the Active Taxpayers’ List :

The applicable tax rate is to be increased by 100 percent (Rule-1 of Tenth Schedule to the Ordinance), i.e. 12 percent of the import value increased by Custom –duty, sales tax and federal excise duty.

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

C&F Value of Mobile Phone (in USD ($) ) Tax (in Rs)
1. Up to $30 the tax rate shall be Rs. 70

2. Exceeding $30 & up to $100 the tax rate shall be Rs. 730

3. Exceeding $100 & up to $200 the tax rate shall be Rs. 930

4.Exceeding $200 & up to $350 the tax rate shall be Rs. 970

5.Exceeding $350 & up to $500 the tax rate shall be Rs. 3,000

6.Exceeding $500 the tax rate shall be Rs. 5,200.

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

C&F Value of Mobile Phone (in USD ($) ) Tax (in Rs)

1. Up to $30 the tax rate shall be Rs. 140

2. Exceeding $30 & up to $100 the tax rate shall be Rs. 1,460

3. Exceeding $100 & up to $200 the tax rate shall be Rs. 1,860

4.Exceeding $200 & up to $350 the tax rate shall be Rs. 1,940

5.Exceeding $350 & up to $500 the tax rate shall be Rs. 6,000

6.Exceeding $500 the tax rate shall be Rs. 10,400.

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