Fertilisers, other items: withdrawal of ST exemption notified

The federal government has withdrawn exemption of sales tax from fertilisers, pesticides and input tax on agricultural tractors by rescinding its notifications SRO No 535(I)/2008, dated 11.06.2008, SRO No 536(I)/2008, dated 11.06.2008 and SRO No 706(I)/2010, dated 02.08.2010.
According to the FBR, the facility of zero-rating on plant, machinery and equipment including parts thereof has also been withdrawn by amending SRO 549(I)/2008, dated 11.06.2008 through SRO230(I)/2011, dated 15.03.2011. These goods will now be liable for sales tax at the rate of 17% The zero-rating on five major export oriented sectors including textiles, carpets, leather, sporting goods and surgical goods has been restricted to registered manufacturers-cum-exporters and exporters for export purpose only.
The FBR has amended SRO 509(I)/2007 through an SRO. 231(I)/2011, dated 15.03.2011. The domestic supplies of these sectors will now be liable to sales tax at the rate of 17 percent. The FBR has rescinded its Notification SRO 564(I)/2006, dated 05.06.2006 whereunder sales tax was being charged on sugar at the assessable value of Rs 28.88 per kg. Now sales tax @ 8% will be charged on the actual price of sugar.