ISLAMABAD: The Federal Board of Revenue (FBR) has excluded a number of items from the negative list and allowed input tax adjustment on the industrial inputs used by manufacturers of five leading export sectors.
The FBR, on Monday, excluded items from the Sales Tax General Order (STGO) Number 9 of 2023. The said STGO contains a negative list of 714 items on which input tax adjustment was not allowed to five leading export-oriented industries i.e. textile, leather, carpets, surgical, and sports.
The rationalization of the negative list has been done by the FBR on Monday.
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According to the FBR’s new decision, the specified Pakistan Customs Tariff (PCT) headings may be excluded from the purview of STGO 9 of 2023 and input tax adjustment on the purchase of these raw materials (tubes, pipes, glass fibers etc) may be allowed to the exporters of sectors including leather and sports and tents and canvas being integral part of their manufacturing process.
Under the STGO 9 of 2023, the input tax adjustment was not allowed to the manufacturers of these five leading export sectors on goods which are not related to their business activity. The negative list of such unrelated goods was annexed with the STGO 9 of 2023.
The Board is empowered to add or delete or modify the Annexures or conditions/benchmarks mentioned therein as and when deemed necessary after recommendations of the field formations holding jurisdiction over the export-oriented sectors, the FBR added.
Copyright Business Recorder, 2024
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