The Federal Board of Revenue (FBR) Tuesday notified reduction in duties and taxes on the import and local supply of essential food items including withdrawal of additional customs duty on the import of edible oil and oil seeds till June 30, 2020.
The FBR has also announced abolition of advance income tax on the import of pulses till June 30, 2020.
According to the SRO 287(1)/2020 issued here on Tuesday by the FBR, the rate of tax under Clause (a) of sub-section (1) of Section 153, in case of a person, other than a company, as a recipient of payment for goods supplied to the Utility Stores Corporation of Pakistan shall be 1.5 percent of the gross amount of payment in respect of supply of tea, spices, salt, dry milk, sugar, pulses, wheat flour and ghee for the period commencing from the date of issuance of this notification till 30th June, 2020.
Provided that this clause shall not be applicable to supply of tea, spices, salt and dry milk, which are sold under a brand name: Provided further that this clause shall not be applicable where rate of tax under clause (a) of sub-section (1) of Section 153 is less than 1.5 percent of the gross amount of payment under any provisions of the ordinance.
The provision of Section 148 of the Income Tax Ordinance 2001 shall not apply to persons importing pulses for a period commencing from the date of issuance of this notification till 30th June, 2020. According to the SRO 288(I)/2020, oil seeds and edible oil would not be subjected to the additional customs duty.