The Central Board of Revenue (CBR) has issued a new list of textile sector raw materials/finished products for import and supply, which are zero-rated for sales tax. This also includes leather, sports goods, surgical and carpets industries. The CBR has superseded SRO. 535(I)/2005 and SRO. 536(I)/2005 of June 6, 2005 through a notification issued on Friday to accommodate maximum items for applying zero-percent sales tax for these industries.
This is for the first time that the CBR has included a number of new items to facilitate five leading industries, as the revised notification will be effective from June 6, 2005.
The SROs have been revised on the recommendations of textile industry, All Pakistan Textile Manufacturers Association (Aptma) and Federation of Pakistan Chambers of Commerce and Industry (FPCCI). The new notification corrects errors in SRO. 535(I)/2005 and SRO. 536(I)/2005.
Explaining salient features of the new notification, the officials said that the CBR has listed 30-35 new PCT headings in the new SRO. Secondly, 10-15 irrelevant PCT headings from the earlier list have been removed, including those items, which have no significance for these industries. Thirdly, two notifications were separately dealing with raw materials and finished products, which have now been combined.
Fourthly, the CBR has removed different tables in the new notification to end confusion created due to 'Tables' in these SROs.
Fifthly, some of the typing mistakes have been rectified to ensure import and supply of sales tax-free inputs/finished products. Sixthly, instead of term "respective PCT headings", the CBR has given specific PCT headings for the convenience of the business community.
The officials added that the Sales Tax Wing has been actively engaged in revising these zero-rating SROs since June 6, 2005 ensuring a smooth working environment for leading sectors operating under the zero-rating scheme.
Under the new notification, sales tax at the rate of zero-percent would be applicable on all the items falling under Chapter 50 to Chapter 63 of Pakistan Customs Tariff (PCT) 2005-06 and other respective headings under the new notification.
Zero-percent sales tax would be applicable on the import and supply of articles used by the leather industry, PCT headings 41.01 to 41.15, 64.03, 64.04 and other respective headings; carpets (PCT 57.01 to 57.05); sports goods, PCT headings 9504.2000, 95.06 and other respective headings and surgical goods falling under respective headings.
Zero-percent sales tax would also apply on the import and supply of the following items as per the new notification: maize (corn) starch; mucilage's and thickeners, whether or not modified, derived from locust beans, locust bean seeds or guar seeds; rattans; emery powder/grains; magnesium oxide; coning oil; spin finish oil; silicon dioxide; sodium hydroxide (caustic soda), solid; sodium hydroxide (caustic soda), in aqueous solution; titanium dioxide; antimony oxide; sodium bromate; sodium sulphide; sodium hydrogen sulphide; sodium dithionite; sodium sulphite; sodium hydrosulphite; disodium sulphate; phosphinates (hypophosphites) and hosphonates(phosphites) disodium carbonate( soda ash); sodium hydrogen carbonate(sodium bicarbonate); hydrogen peroxide; p-Xylene; methylene chloride; trichloroethylene; ethylene glycol (MEG); 4-chloro 3-methyl phenol and chloro hydro quinone; di-ethylene glycol; ethyl glycol; tri-ethylene glycol; glutar aldehyde; methyl ethyl ketone; formic acid; sodium formite; acetic acid; sodium acetate; cobalt acetate; acrylic acid and its salts; esters of methacrylic acid; oxalic acid; adipic acid, its salts and esters; maleic acid; pure terephthalic acid (PTA); tartaric acid; citric acid; gluconic acid and its salts; glycolic acid and their esters; other phosphoric esters and their salts.
DYES INTERMEDIATES: anti-oxident; DMF (dimethyl formamide); acrylonitrile; other organic derivatives of hydrazine or of hydroxylamine.
TANNING: extracts of vegetable origin; tannins and their salts, ethers, esters and other derivatives; synthetic organic tanning substances, inorganic tanning substances, tanning preparations, whether or not containing natural tanning substances; enzymatic preparations for pre-tanning; disperse dyes and preparations based thereon; acid dyes and preparations based thereon; basic dyes and preparations based thereon; direct dyes and preparation-based thereon; Indigo Blue; vat dyes and preparations based thereon; reactive dyes and preparations based thereon; pigments and preparations based thereon; dyes, sulphur; dyes, synthetic; synthetic organic products of a kind used as fluorescent brightening agents; other synthetic organic colouring matter; pigments and preparations based on titanium dioxide; other colouring matter and other preparations; granules, flakes, powder of glass (others);lacquer/hardener/resin; prepared water pigments of a kind used for finishing leather; ink for inkjet engraver; anionic surface active agents; cationic surface active agents; non-ionic surface active agents; surface active preparations (including auxiliary washing preparations) and cleaning preparations; preparations for the treatment of textile material, leather, fur skins or other material; spin finish oil; artificial waxes and prepared waxes; other artificial waxes; electro polishing chemicals; other glues (printing gum); shoe adhesives; hot melt adhesive; enzymes; photographic film, with silver halide emulsion (for textile use); sensitising emulsions (for textile use); lignin sulphonates; gum rosin; fungicides for leather industry; preparation of a kind used in textile or like industry;preparations of a kind used in leather or like industries; compound plasticisers for rubber or plastics; antimony triacetate; palladium catalyst; electrolyte salt; prepared binders for foundry moulds, including peroxide stabiliser and nickel salt; polymers of vinyl acetate (in aqueous dispersion); vinyl acetate copolymers: in aqueous dispersion; polymers of vinyl alcohol; other vinyl polymers; other acrylic polymers; acrylic polymers in primary forms; polyethylene terephthalate - yarn grade, and its waste; nylon chips (PA6); polyurethanes; silicones in primary form; cellulose nitrates non-plasticised; other cellulose nitrates; carboxymethyl cellulose and its salts; alginic acids, its salts and esters; nylon tubes; artificial leather; synthetic leather grip; natural rubber latex; technical specialised natural rubber; rubber latex; synthetic rubber SBR 1502 latex; butadiene rubber; thermo-plastic rubber (T.P.R); Vulcanised rubber thread and cord; leather shearing-finish leather with wool; articles of apparel and clothing accessories of fur skin; artificial fur and articles thereof; English willow cleft (wood); cork granules; cork sheet; satin finishing wheels; carbon fibre; glass fiber sleeves; shoe tacks; forging of surgical and dental instruments; nickel anode (others); nickel rotary printing screens; hooks for footwear; eyes and eyelets for footwear; tubular or bifurcated rivets; strings; bladders and covers of inflatable balls; press-fasteners, snap fasteners and press studs; buttons of plastics not covered with textile material; buttons of base metal not covered with textile material; studs and slide fasteners fitted with chain scoops of base metal.
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