GST calculation Zones to determine highest retail price of fertiliser

The Federal Board of Revenue (FBR) is planning to divide Pakistan into zones for determination of the highest retail price of fertiliser sold in retail packing for accurate calculation of sales tax. Sources told Business Recorder here on Thursday the decision has been taken in the last meeting of the Board-in-Council regarding notification of zones for determination of highest retail price of fertiliser in retail packing.
A brief presentation was made by FBR Member (IR-Ops) highlighting the need for notifying zones for determination of the highest retail price of fertiliser in retail packing. The members of Board-in-Council were informed that a notification on similar lines was issued for determination of highest retail price of cement sold in retail packing vide STGO No 94 of 2014 dated 12th December, 2014.
After discussion the Board-in-Council unanimously decided that the requisite powers may be delegated to FBR Member (IR-Ops) for further necessary action in the matter. Experts said the retail price of items like cement/fertiliser varied from one to another province depending on the cost of transportation and other factors. Moreover, when region-wise price would be fixed, sales tax would be charged on highest retail price of cement sold in retail packing. Maximum price of fertiliser to be fixed in the region would be considered for the purpose of imposition of sales tax.
Earlier, the highest retail price of cement was fixed for both the zones for the purpose of calculation of sales tax of this item sold in retail packing. In the past, the FBR had divided Pakistan into two zones ie North Zone and South Zone, for determination of the highest retail price of cement sold in retail packing for accurate calculation of sales tax.
For this purpose, the FBR had issued a sales tax general order (STGO) 94 of 2014 for the notification of zones for determination of highest retail price of cement sold in retail packing. According to the STGO, the FBR had notified following zones for the purpose of determination of highest retail price of any brand or variety of cement sold in retail packing: North Zone comprises Punjab, Khyber Pakhtunkhawa, Federally Administered Tribal Area, Azad Jammu & Kashmir and Northern Areas (Gilgit-Baltistan). South Zone comprises Sindh and Balochistan, the FBR added.