ISLAMABAD: The Federal Board of Revenue (FBR) has allocated quota for import of raw material without any duty for industries located in merged tribal districts.
The FBR has issued Sales Tax General Order (STGO) No. 14, dated April 16, 2022, regarding quota for import of raw materials for industries located in erstwhile Federally Administered Tribal Areas (FATA) and provincially Administered Tribal Areas (PATA).
The FBR said that import of plant and machinery and inputs by industrial undertakings located in erstwhile FATA/ PATA are exempt under Serial number 151 of Table-1 of the Sixth Schedule to the Sales Tax Act, 1990 till 30th day of June 2023.
To prevent misuse of said exemption, a number of significant amendments have been introduced in the Sales Tax Act, 1990 including section 40D and S. No. 74 of Table-1 of the Eighth Schedule to the Sales Tax Act, 1990.
Different administrative measures are also being taken by FBR including escort of containers from Azakhail Dry Port to the location of the concerned unit.
In order to ensure further transparency and prevent leakage of revenue, the FBR has decided that industrial units located in erstwhile FATA/PATA shall be allocated import quota of raw materials as determined by Directorate General IOCO-Inland Revenue in consultation with the Regional Tax Office (RTO), Peshawar on the basis of installed capacity of these units.
The annual import quota as per the attached Annex-A shall be apportioned equally in 12 equal parts on monthly basis and that shall be duly entered in the WeBOC against each manufacturer/ industrial unit.
After each updation, the balance available quota for the remaining year shall also be clearly mentioned. The FBR said that the STGO shall come into effect immediately until further order.
