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FBR withdraws SRO 231(1) 2011 due to shortage of imported inputs for 5 export sectors.

Federal Board of Revenue (FBR) has decided to hold the operation of SRO 231(1) 2011 of 15th of this month in abeyance to address the issue of shortage of raw materials for export sectors.

All import consignments will be cleared according to SRO.509 (1) 2007 dated 09-06-2007 which was applicable up to 15-03-2011.

According to FBR notification of March 29, 2011 addressed to its Chief Collectors Customs South and North regions, special excise duty shall also not be charged on the consignments stuck up with Pakistan Customs at ports.

It said the Government/FBR has decided to review the zero-rating scheme of SRO.509(1) 2007 dated 09-06-2007 and new notification in this regard will be issued shortly which will be effective from 15-03-2011. However, the reduced tax rates will continue to be effective.

Since most of the import consignments lying at the ports are held up due to application problem of SRO. 231(1) 2011, the manufacturers of five major export sectors are facing shortage of raw materials, the FBR communique said.

FBR has issued instructions to the field formations that the SRO 231 (I)/2011 would be held in abeyance till further orders. This means that the status of zero-rating facility has been restored as before March 15, 2011 for five zero-rated sector. The SRO 231 (I)/2011 would be held in abeyance till issuance of the amended notification for the concerned sectors. The domestic supplies of these five zero-rated sectors were liable to sales tax at the standard rate of 17 percent after issuance of SRO 231 (I)/2011. Under the new development, the local supplies of these five zero-rated sectors would now not be subjected to 17 percent sales tax for sometime.

Through SRO 231(I)/2011, the FBR had restricted the sales tax zero-rating facility of five export sectors including textile, leather, surgical, sports and carpets to only registered manufacturers-cum-exporters or exporters for export purpose by amending SRO 509(I)/2007.

The SRO 231(I)/2011 was issued along with the Income Tax (Amendment) Ordinance, 2011, Federal Excise (Amendment) Ordinance, 2011 and Sales Tax (Amendment) Ordinance, 2011 as a part of government scheme to gradually remove distortions in the sales tax regime.

Government of Pakistan Ministry OF Finance Economic Affairs, Statistics And Revenue (REVENUE DIVISION)

Islamabad, the 15th March ,2011.

Notification

(SALES TAX)

S.R.O. 231(1)/2011.-in exercise of the powers conferred by (c) of Section 4 of the Sales Tax Act, 1990. The Government is pleased amendment shall be made in its Notification No. S.R.O. 509(1)/2007. Dated the 9th June. namely:_

In the said Notification, in the preamble, after the comma at the end, following Words and comma shall be added, namely:

"If these goods after registered as manufactures - cum - exporters or as exporters for use or utilization in goods meant for export:"

C.No.1/29-STB/2011

Khawar khurshid Butt

Additional Secretary

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Title Annotation:Federal Board of Revenue
Publication:Pakistan Textile Journal
Geographic Code:9PAKI
Date:Mar 31, 2011
Words:488
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