Withholding tax rates on imports updated through Finance Supplementary (Second Amendment) Act 2019

KARACHI: Federal Board of Revenue (FBR) issued withholding tax rates on imports for tax year 2019 updated as per Finance Supplementary (Second Amendment) Act, 2019.

The withholding tax rates updated up to March 09, 2019 on import under Section 148 of Income Tax Ordinance, 2001 as follow:

The collector of customs shall collect withholding tax from every import of goods on the value of goods at the rate of one percent from filers of the import value increased by customs – duty, sales tax and federal excise duty and at 1.5 percent from non-filers of the import value as increased by customs-duty, sales tax and federal excise duty on the value of goods, included:

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

— Industrial undertaking importing Plastic raw material (PCT Heading 39.01 to 39.12) for its own use.

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

2. Persons Importing Pulses

Filer: 2 percent of the import value as increased by Custom-duty, sales tax and federal excise duty

Non-filer: 3 percent of the import value as 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

Filer: 3 percent of the import value as increased by custom-duty sales tax and federal excise duty.

Non-filer: 4.5 percent of the import value as 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

Filer: 4.5 percent of the import value as increased by Custom-duty, sales tax and federal excise duty

3A. Persons importing coal

Filer: 4 percent

Non-filer:6 percent

4. Ship breakers on import of ship

Filer: 4.5 percent

Non-filer: 6.5 percent

5. Industrial undertakings not covered under S.No 1 to 4

Filer: 5.5 percent

Non-filer: 8 percent

6. Companies not covered under S. Nos 1 to 5

Filer: 5.5 percent

Non-filer: 8 percent

7. Persons not covered Under S.Nos 1 to 6

Filer: 6 percent

Non-filer: 9 percent

New proviso introduced through Finance Supplementary (Second Amendment) Act, 2019

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: Rs70

2.Exceeding $30 & up to $100: Rs. 730

3.Exceeding $100 & up to $200: Rs. 930

4.Exceeding $200 & up to $350: Rs. 970

5.Exceeding $350 & up to $500: Rs. 3,000

6.Exceeding $500: Rs. 5,200

The tax shall be final for all other than those excluded under S. 148(7)&(8)

The tax shall be adjustable for a tax year under S. 148(7) in respect 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.

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