Transposition of SRO.575(I)/2006: ST relief on large number of machinery, equipment retained

The Federal Board of Revenue (FBR) has retained sales tax exemption on a large number of machinery and equipment during transposition of SRO.575(I)/2006 to the Sixth Schedule of the Sales Tax Act 1990. Sources said on Friday that transposition of SRO 575(I)/2006, dated 13.06.2006 to schedules with certain changes has been done in budget (2014-15). This is a composite SRO extending customs duty and sales tax concessions to various sectors on import of plant and machinery.
The existing concession to the following sixteen socially sensitive sectors (Sr. No 6, 7, 10, 10A, 11, 12, 13, 14, 18, 19, 26, 27, 31, 35, 35A and 39) are proposed to be retained by transferring these to the Sixth Schedule of the Sales Tax Act, 1990 with the corresponding conditions:- Machinery and equipment for initial installation, balancing, modernisation, replacement or expansion of desalination plants, coal firing system, gas processing plants and oil and gas field prospecting.
Machinery, equipment, apparatus, and medical, surgical, dental and veterinary, furniture, materials, fixtures and fitting imported by hospitals and medical or diagnostic institutes. Machinery, equipment, materials, capital goods, specialised vehicles for mine construction phase or extraction phase. Coal mining machinery, equipment, spares including vehicles for site use imported for Thar Coal Field.
Machinery, equipment and spares for initial installation, balancing, modernisation, replacement or expansion of projects for power generation through oil, gas, coal, wind and wave energy. Machinery, equipment and spares for initial installation, balancing, modernisation, replacement or expansion of projects for power generation through gas, coal, hydel sources. Machinery and equipment and spares for initial installation, balancing, modernisation of projects for power generation through nuclear and renewable energy like solar, wind, bio-energy, ocean and construction machinery for construction of the projects.
Machinery and equipment for power transmission and grid stations. Machinery, equipment and other education and research related items imported by technical, training institutes, research institutes, schools, colleges and universities. Machinery, equipment, raw materials, components and other capital goods for use in buildings, fittings, repairing or refitting of ships, boats or floating structures imported by Karachi Shipyard and Engineering Works Limited.
Machinery and equipment for marble, granite and gem stones extraction and processing industries. Machinery, equipment and other project related items including capital goods, for setting up of hotels, power generation plants, water treatment plants and other infrastructure related projects located in an area of 30 km around the zero point in Gwadar.
Effluent treatment plants; items with dedicated use of renewable source of energy like solar, wind, geothermal; items for promotion of renewable energy technologies and plant, machinery, equipment and specific items used in production of bio-diesel. In accordance with the policy of reviewing SROs, it is proposed to charge following seven sectors (Sr. No 2, 3, 4, 9, 15, 20 and 30) of SRO at reduced rate of 5 percent sales tax: Machinery and equipment for development of grim handling and storage facilities.
Cool chain machinery and equipment. Items imported by call centers, business processing outsourcing facilities duly approved by Telecommunication Authority. Machinery, equipment, materials, capital goods, specialised vehicles, accessories, spares, chemicals and consumables meant for mineral exploration phase and construction machinery, etc for exploration phase.
Complete plants for relocated industries. Machinery, equipment and other capital goods meant for initial installation, balancing, modernisation, replacement or expansion of oil refining petrochemical and petrochemical downstream products including fibers and heavy chemical industry, cryogenic facility for ethylene storage and handling. Proprietary Formwork System for building/structures of a height of 100 ft and above.
The concessions of sales tax to the following nine sectors (Sr. No 8, 16, 17, 24, 25, 32, 33, 37 and 38) are proposed to be withdrawn: Machinery, equipment and other items required for setting up, up-gradation and expansion of hotels (3 stars and above), tourism; sporting and other recreation services related projects as approved by the Ministry of Tourism.
Machinery, equipment and other capital goods for Service Sectors. Machinery, equipment and capital goods imported for establishing wholesale/retail chain stores. Air Handling Units; items imported by the manufacturing sector; heat ventilation air conditioner; machinery and equipment relating to broadcasting; machinery and equipment imported by surgical industry and machinery and equipment imported by cutlery industry.