One percent 'further tax': FBR issues SRO exempting wide range of items

The Federal Board of Revenue (FBR) has exempted one percent 'further tax' on supply of electricity to domestic/agricultural consumers; natural gas to domestic consumers, motor oil, jet fuel, diesel oil, kerosene oil and fuel oil, goods sold by retailers to end-consumers, supply of goods directly to end consumers including food and beverages, fertilisers and vehicles.
According to SRO.648(I)/2013 issued here on Tuesday, one percent further tax would not be applicable on the items falling in the Third Schedule of the Sales Tax Act 1990. The exemption from further tax would be applicable retrospectively from June 13, 2013. The notification said that the further tax at the rate of one percent shall not be charged, levied or paid on the taxable supplies of the good specified in the SRO.648(I)/2013.
The further sales tax would not be charged on the supply of fruit juices and vegetable juices, ice cream, syrups and squashes, cigarettes, toilet soap, detergents, shampoo, toothpaste, shaving cream, perfumery and cosmetics, tea, toilet paper and tissue paper, shoe polish and shoe cream and spices sold in retail packing bearing brand names and trade marks and powder/milky drinks.
Sources said that further tax would be applicable on the supply of ghee and cooking oil. Sources said that the Board has also exempted one percent further tax on items sold on the basis of printed retail price. Some of the items under the Third Schedule of the Sales Tax Act covered household electrical goods, household gas appliances, auto parts, lubricating oil, tyres and tubes, storage batteries, arms/ammunition, fertilisers, cement sold in retail packing, biscuits, confectionery, chocolates, toffees and candies, tiles sold in retail packing and other goods and products sold in retail packing. The one percent further tax would also not be applicable on other items sold on the basis of printed retail price under the Third Schedule of the Sales Tax Act.