The Federal Board of Revenue (FBR) on Wednesday implemented rules for taxing imported goods. FBR introduced it through (Twelfth Schedule of Income Tax Ordinance, 2001) Schedule XII of the Income Tax Ordinance 2001.
The FBR issued SRO 715 (I) / 2020 for the implementation of new rates of taxes on the import of goods.
The new 12th Schedule 2020 introduced by the Finance Act. To rationalize the tax on imports by shifting the rates from person specific rates to the goods specific rates. Such as 1% on capital goods. 2% for raw materials. 5.5% for manufactured goods (Finished Items) regardless as type of importer.
However, the prevailing concession rates on some items such as remelt-able scrap of iron and steel, potassic and urea fertilizers, LNG, Gold, Cotton, goods that imported by manufacturers under the rescinded SRO 1125(I)/2011 dated 31.12.2011, mobile phones etc. maintained.
The provisions of the new rules introduced in the Income Tax Rules, 2002 will apply to entries for additions, omissions or amendments in the Twelfth Schedule. To apply for a lower rate on goods falling under Part III of the Import Schedule by individuals. If Used as raw material.
Under the new rules, a three-member committee headed by Member Inland Revenue Policy, FBR, has been formed. The other two members will consist of Member Inland Revenue Operations and Member Taxpayer Audit.
The Committee empowered to include any entry in the Twelfth Schedule of the Ordinance or to omit any of these entries or to amend any entry in it. The FBR also issued procedures for import under reduced rate certificate and exemption certificate.