PROCEDURES (SOPs) FOR CASES OF GRANTING
EXEMPTION SALES TAX AND CONCESSIONARY CUSTOMS DUTY UNDER
SALES TAX ACT, 1990 AND CUSTOMS ACT, 1969 DULY AMENDED
THROUGH FINANCE ACT, 2014
In order to remove discriminatory exemptions / concessions, a committee under the
Chairmanship of Federal Minister for Finance, Revenue, Economic Affairs, Statistics
and Privatization was set up to review, simplify and rationalize the whole concessionary
regime (SROs), giving due regard to the aspects of taxpayer facilitation, growth
of local/export oriented industry and revenue generation.
On the recommendations of the committee, the Government of Pakistan has been pleased
to enact Finance Bill 2014 to amend certain laws.
As a result of amendments in Customs Act, 1969 and Sales Tax Act 1990, the concessionary
imports under serial Nos.16 and 17 (related to BOI) of SRO-575(I)/2006 have been
withdrawn. However, concessionary imports related to BOI under serial No.7 of SRO-575(I)/2006
is still available to facilitate the social/health sector as per following details:
The machinery, equipment, apparatus, and medical, surgical, dental and veterinary
furniture, materials, fixtures and fittings (including fabricated buildings), as
specified in column-2 of Annexure of the Table-3 of Sixth Schedule of Sales Tax
Act, 1990 and Table of Fifth Schedule to the Customs Act, 1969 duly amended through
Finance Act, 2014, imported by hospitals and medical or diagnostic institutes are
exempted whole of sales tax and allowed concessionary customs duty subject
to the following conditions ::
The imported goods as are not listed in the locally manufactured items, notified
through a Customs General Order issued by the Federal Board of Revenue (FBR) from
time to time as the case may be, certified as such by the Engineering Development
Locally manufactured goods of description as specified in column (2) can also be
imported if the project requirement shall be approved by the Board of Investment
(BOI). The authorized officer of BOI shall certify the items wise requirement of
the project in be prescribed format and manner as per Annex-B.
The exception shall be available on one time basis for setting up of new projects
and expansion of existing ones, and shall not be available on the spare parts.
In case of partial shipments of machinery and equipment for setting up a plant,
the importer shall at the time of arrival of first partial shipment, furnish complete
details of the machinery, equipment and components required for the complete plant,
duly supported by the contract, layout plan and drawings.
Only those importers shall be eligible to avail the aforesaid exemption whose cases
are recommended and forwarded by BOI to FBR.
The goods shall not be sold or not or otherwise disposed of without prior approval
of the FBR and payment of custom-duties and taxes at statutory rates be leviable
at the time of import. Breach of this condition shall construed as a criminal offence
under the Customs Act, 1969 (IV of 1969):
OBJECTIVE TO ADOPT
STANDARD OPERATING PROCEDURES
In order to facilitate the applying companies/importers the Standard Operating Procedures
(SOPs) have been prepared to process the cases on ‘Fast Tract Basis’ for speedy
disposal. The purpose is to have the required documents in one go and to have better
understandings between the importers and Government agencies: