The Federal Board of Revenue (FBR) has released unit-wise details of the import quota of raw materials allocated to 64 industrial units of erstwhile FATA/PATA based on their actual installed capacity.
In this connection, the tax regulator issued sales tax general order 14 of 2022 on Saturday.
The units located in the erstwhile tribal areas belong to the sectors of steel, ghee and cooking oil, plastics, textile, pharmaceutical, food industries, and batteries. The FBR has taken the decision to check the misuse of sales tax exemption given to the industrial units of erstwhile FATA/PATA.
The FBR said that the import of plant and machinery and inputs by industrial undertakings located in erstwhile FATA/ PATA are exempt under S. No. 151 of Table-1 of Sixth Schedule to the Sales Tax Act, 1990 till 30th June 2023. To prevent misuse of said exemption, a number of significant amendments have been introduced in the Sales Tax Act, 1990 including sections 40D and S. No. 74 of Table-1 of the Eighth Schedule to the Sales Tax Act, 1990. Different administrative measures are also being taken by FBR including the escort of containers from Azakhail Dryport to the location of the concerned unit.
In order to ensure further transparency and prevent leakage of revenue, it has been decided that industrial units located in erstwhile FATA/PATA shall be allocated import quota of raw materials as determined by Directorate General IOCO-IR in consultation with the RTO, Peshawar on the basis of installed capacity of these units. The annual import quota as per the attached Annex-A shall be apportioned equally in 12 equal parts on monthly basis and that shall be duly entered in the WeBOC against each manufacturer/ industrial unit. After each updation, the balance available quota for the remaining year shall also be clearly mentioned.
In order to ensure further transparency and prevent leakage of revenue, it has been decided that industrial units located in erstwhile FATA/PATA shall be allocated import quota of raw materials as determined by Directorate General IOCO-IR in consultation with the RTO, Peshawar on the basis of installed capacity of these units.
The annual import quota as per the attached Annex-A shall be apportioned equally in 12 equal parts on monthly basis and that shall be duly entered in the WeBOC against each manufacturer/ industrial unit. After each updation, the balance available quota for the remaining year shall also be clearly mentioned, FBR added.
