Implementation on Sales Tax, Federal Excise Budgetary leave Commercial importers in panic

KARACHI: A large number of consignments of commercial importer are struck at port as government included finished articles in Third Scheduled of Sales Tax Act, 1990 through Finance Act 2019 that left importers bemused and reluctant to clear their goods.

In federal Budget 2019-20, Pakistan Tehreek-e-Insaf (PTI) government has included finished articles in Third Scheduled of Sales Tax act 1990 through Finance Act 2019, which discourage commercial imports and ease the pressure from import bill.

According to a notification issued by Pakistan Customs, as per the measures taken through federal budget, the items listed in the Act shall now be assessed at retail price at the import stage.

The custom department also directed that retail prices should be printed on each individual item in the manner as specified clause (a) of sub-section (2) of the section 3 of the Sales Tax Act 1990. However, during the interim period up to July 31, 2019 the clearance may also be allowed if the imported items are affixed with sticker showing declared retail price.