Cement block makers to be brought into ST net

SOHAIL SARFRAZ

ISLAMABAD: The Federal Board of Revenue (FBR) has decided to bring all units, engaged in manufacture of cement blocks used in buildings including ready mix concrete blocks' and 'ready mix concrete' into sales tax net.

Sources told Business Recorder here on Tuesday that the FBR has issued instructions to the Chief Commissioners of Regional Tax Offices (RTOs) to bring manufacturers of 'Building blocks of cement including ready mix concrete blocks' and 'ready mix concrete' within the sales tax regime. The FBR has clarified the issue on a representation filed by the RTO-II Lahore. The FBR has examined the issue in legal perspective as per sales tax rules and regulations. According to the FBR, prior to June 4, 2011, 'ready mix concrete blocks' were exempt from sales tax under S.No.35 of Table-I of Sixth Schedule of the Sales Tax Act, 1990. This serial number has been deleted vide Finance Act, 2011 from June 4, 2011; hence, 'ready mix concrete blocks' have become chargeable to sales tax from June 4, 2011. 'Ready mix concrete' has, however, always been chargeable to sales tax because it was not covered under Serial No. 35 of Table I of Sixth Schedule of the Sales Tax Act, 1990. All RTOs are, therefore, directed to bring all units engaged in manufacture of 'Building blocks of cement including ready mix concrete blocks' and 'ready mix concrete' in the sales tax net, FBR's directive added.