The Central Board of Revenue (CBR) has withdrawn one percent special surcharge on the import of inputs and raw materials by manufacturers-cum-exporters of textile, leather products including artificial leather footwear; carpets; sports and surgical goods.
The CBR has also abolished special surcharge on import of items covered under SRO 567(I)/2006. The local industry has been exempted from surcharge on import of all kinds of raw materials and inputs specified in the SRO 567(I)/2006.
Sources told Business Recorder on Tuesday that the CBR has issued instructions to the collectors of customs barring them from collecting one percent special surcharge on five leading export-oriented zero-rated sectors. According to the directive, collectors of customs would not collect special surcharge on the import of raw materials and inputs imported by these zero-rated sectors.
Sources said that the decision would not have any revenue implications as zero-rated sectors are already importing most of the products at zero-percent sales tax and without customs duty.
The CBR directive has also specified some SROs pertaining to zero-rated sectors issued from time to time to claim exemption on the levy. Sources said that the CBR is likely to exempt more sales tax zero-rated items from charging special surcharge during 2007-08.
The levy would also not be applicable on the import of all goods classifiable in chapter 7 of the Pakistan Customs Tariff; edible oils and fats; petroleum oils and oils obtained from bituminous minerals, crude; temporary importation under SRO 1065(I)/2005, imports under Duty and Tax Remission for Export (DTRE) scheme and imports under manufacturing bonds scheme; motor spirit, aviation spirit; high speed diesel oil; furnace-oil; pharmaceutical products; fertilisers. The products under special classification provisions would also be exempt from special surcharge.
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