Federal Board of Revenue (FBR) has issued updated withholding tax rates on imports for year 2021/2022. The collector of customs collects withholding tax under Section 148 of Income Tax Ordinance, 2001 at the time of consignment clearance.
Tax to be collected from every import of goods:
(1) (i) persons importing goods classified in Part-I of the Twelfth Schedule at the rate of one per cent of the import value as increased by customs duty, sales tax and federal excise duty. The applicable tax rate shall be increased by 100 per cent in case persons are not appearing in the Active Taxpayers List (ATL).
(ii) Manufacturers 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 the tax rate shall be 1 per cent of the import value as increased by Custom duty, sales tax and federal excise duty. The tax rate shall be increased by 100 per cent for persons not appearing on the ATL.
(iii) Persons importing goods classified in Part-II of the Twelfth Schedule, the tax rate shall be 2 per cent of the import value as increased by Custom duty, sales tax and federal excise duty. For persons not appearing in the ATL the applicable tax rate is to be increased by 100 per cent.
(iv) Persons importing goods classified in Part-III of the Twelfth Schedule, the tax rate shall be 5.5 per cent of the import value as increased by Custom duty, sales tax and federal excise duty. For persons not appearing in the ATL the applicable tax rate shall be increased by 100 per cent.
(v) In case of importers of CKD kits of electric vehicles for small cars or SUVs with 50 kwh battery or below and LCVs 150 kwh battery or below, the tax rate shall be one per cent. For persons not appearing in the ATL the applicable tax rate is to be increased by 100 per cent.
(2) In case of persons importing finished pharmaceutical products that are not manufactured otherwise in Pakistan, as certified by the Drug Regulatory Authority of Pakistan, the tax rate shall be 4 per cent. For persons not appearing in the ATL the applicable tax rate shall be increased by 100 per cent.
proviso
On Import of Mobile Phones by any Person (individual, AOP, Company)
The tax rate shall be:
Withholding Tax Regime
Persons not appearing in the Active Taxpayers’ List :
The applicable tax rate is to be increased by 100 per cent (Rule-1 of Tenth Schedule to the Ordinance),
The withholding tax imposed at import stage shall be minimum under Section 148(7) of Income Tax Ordinance, 2001:
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)
