AVN 66.70 Increased By ▲ 1.50 (2.3%)
BAFL 30.75 Increased By ▲ 0.01 (0.03%)
BOP 4.84 Increased By ▲ 0.04 (0.83%)
CNERGY 3.78 Increased By ▲ 0.07 (1.89%)
DFML 14.45 Increased By ▲ 0.24 (1.69%)
DGKC 40.95 Decreased By ▼ -0.10 (-0.24%)
EPCL 46.84 Increased By ▲ 0.39 (0.84%)
FCCL 11.35 Decreased By ▼ -0.05 (-0.44%)
FFL 5.04 Decreased By ▼ -0.01 (-0.2%)
FLYNG 5.87 Increased By ▲ 0.07 (1.21%)
GGL 10.40 Increased By ▲ 0.07 (0.68%)
HUBC 66.80 Decreased By ▼ -0.07 (-0.1%)
HUMNL 5.65 Decreased By ▼ -0.06 (-1.05%)
KAPCO 27.91 Increased By ▲ 0.15 (0.54%)
KEL 2.20 No Change ▼ 0.00 (0%)
LOTCHEM 25.18 Increased By ▲ 0.28 (1.12%)
MLCF 21.44 No Change ▼ 0.00 (0%)
NETSOL 85.70 Increased By ▲ 2.10 (2.51%)
OGDC 92.38 Increased By ▲ 6.48 (7.54%)
PAEL 11.04 Increased By ▲ 0.03 (0.27%)
PIBTL 4.19 Decreased By ▼ -0.03 (-0.71%)
PPL 79.35 Increased By ▲ 4.87 (6.54%)
PRL 13.59 Increased By ▲ 0.16 (1.19%)
SILK 0.92 No Change ▼ 0.00 (0%)
SNGP 42.10 Increased By ▲ 1.70 (4.21%)
TELE 5.89 Increased By ▲ 0.03 (0.51%)
TPLP 15.77 Increased By ▲ 0.37 (2.4%)
TRG 114.07 Increased By ▲ 2.66 (2.39%)
UNITY 13.79 Increased By ▲ 0.04 (0.29%)
WTL 1.15 Increased By ▲ 0.01 (0.88%)
BR100 4,080 Increased By 42.4 (1.05%)
BR30 14,777 Increased By 365.7 (2.54%)
KSE100 40,781 Increased By 309.5 (0.76%)
KSE30 15,319 Increased By 156.5 (1.03%)
Follow us

ISLAMABAD: The government is planning to rationalise duties and taxes on essential food items, reduction in sales tax on locally-produced dairy products, and discourage import of raw materials which are locally manufactured or produced such as coal in the next budget (2021-22).

Sources told Business Recorder, here on Monday that the government is considering to raise duties and taxes on the import of raw materials which are locally manufactured or produced.

For instance, the duties and taxes would be raised on the import of coal in the coming budget (2021-22).

If custom duties, additional customs duties, and regulatory duties cannot be imposed on such imported raw materials/inputs (locally available) under the World Trade Organization (WTO) obligations, the government may impose advance income tax or withholding tax on such imports.

The proposals under consideration is to reduce sales tax from 10 percent to a lower level for the locally-manufactured dairy products sold in retail packing under brand names such as flavoured milk; yogurt; cheese; butter; cream; desi ghee; whey and milk and cream, concentrated or containing added sugar or other sweetening matter.

The government has yet not finalised the reduced sales tax rate on dairy products, but it would be brought down from 10 percent to a reasonable level.

The government is also considering to rationalise duties and taxes on the import of dairy equipment and machinery, whereas, the incidence of the duties and taxes on the import of dairy items may be raised in the coming budget.

The same principle of imposing advance withholding tax would apply in case of imported dairy products where the government cannot raise customs duty, regulatory duties, and ADCs under the WTO obligations.

The proposals were deliberated in detail during the last meeting of the Ministry of Commerce, the Federal Board of Revenue, the Ministry of Industries and Production, and the Ministry of National Food Security on essential food items including dairy products.

According to sources, the Overseas Investors Chamber of Commerce and Industry (OICCI) and the Pakistan Dairy Association have proposed restoration of the zero-rating regime on the dairy sector in budget (2021-22).

The government is facing a serious challenge in providing such sales tax relief to various sectors under the policy of withdrawal of sales tax exemptions and concessionary or reduced rates of sales tax in the coming budget (2021-22).

Copyright Business Recorder, 2021

Comments

Comments are closed.

Govt plans to rationalise duties, taxes on food items

Intra-day update: rupee improves, up 2.15% against US dollar

Talks extended for two days: IMF demands govt withdraw power subsidy

All set for inking pact with Denmark under DETI

Major quake kills more than 100 across Turkey, Syria

FBR to check benami transactions of civil servants

Musharraf, the ‘architect’ of Kargil war, dies

TTP celebrates death

COAS reaches UK on five-day visit

China delivers two Hualong-1 nuclear power units

KSA warns sanctions, underinvestment may cause energy shortages