Back More News Duty waiver on import 25pc RD imposed on export of potato RECORDER REPORT ISLAMABAD: The Federal Board of Revenue (FBR) has abolished sales tax, customs duty and withholding tax on the import of potatoes and imposed 25 percent regulatory duty on its export during May 5-July 31, 2014. The FBR has issued four notifications on Friday in line with the decision of the Economic Coordination Committee (ECC) of the Cabinet. Official sources told Business Recorder that the FBR has abolished all duties and taxes on the import of potatoes. The tax exemption would be available during the period May 5-July 31, 2014. The FBR has exempted 17 percent sales tax, 5 percent withholding tax and customs duty on the import of potatoes during the abovesaid period. This is subject to the condition that such imports shall not exceed 200,000 tons in aggregate during the said period. The ECC had considered a summary of the Ministry of National Food Security and Research on creation of potatoes artificial price hike in the market. The ECC was informed that hoarding and profiteering led to increase in the potatoes price locally. The ECC on the recommendation of Minister for National Food Security and Research decided to impose 25pc regulatory duty on export of potato with effect from May 5, 2014. It was further decided that there will be zero duty and levy on import of potato from May, 5 till July 31, 2014 and the measure will help in bringing potato prices at rational level in the market before and during the month of Ramazan 2014. Following is the text of the notification issued here on Friday: In exercise of the powers conferred by clause (c) of section 4 of the Sales Tax Act, 1990, the Federal Government is pleased to direct that the following amendments shall be made in its Notification No. SRO 549(I)/2008, dated the 11th June, 2008, namely:- In the aforesaid notification, after Sr. No.11 in column (1) and the entries relating thereto in columns (2) and (3), the following new S. No. and the entries relating thereto shall be added, namely:- Import of 200,000 metric tons of potato, If imported from 5th May, 2014 to 31st July, 2014, it added. Following is the text of the second notification issued here on Friday: In exercise of the powers conferred by clause (2) of section 53 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Federal Government is pleased to direct that the following further amendment shall be made in the Second Schedule to the said Ordinance, namely:- In the aforesaid Schedule, in Part-IV, after clause (56A), the following new clause shall be added, namely:- (“56B) Provisions of section 148 shall not apply in respect of import of potatoes between 5th of May, 2014 and 31st of July, 2014, provided that such imports shall not exceeds 200,000 metric tons in aggregate during the said period”. Following is the text of the third notification issued here on Friday: In exercise of the powers conferred by sub-section (3) of section 18 of the Customs Act, 1969 (Act IV of 1969), the Federal Government is pleased to direct that a regulatory duty at the rate of twenty-five percent ad valorem shall be levied on export of potatoes falling under PCT heading 0701.9000 on the First Schedule to the said Act. This notification shall take effect from 5th May, 2014. Following is the text of the fourth notification issued here on Friday: In exercise of the powers conferred by sub-section (3) of section 18 of the Customs Act, 1969 (IV of 1969), the Federal Government is pleased to direct that the following amendment shall be made in its Notification No. SRO 808(1)/2009, dated the 19th September, 2009, namely: - In the aforesaid Notification, in the preamble, for full stop at the end a colon shall be substituted and thereafter the following proviso shall be inserted, namely:- “Provided that aforesaid regulatory duty shall not be levied on import of 200,000 metric tons of potatoes (PCT 0701.9000) during the period from the 5th day of May, 2014 to the 31st day of July, 2014 (both days inclusive).”
Posted on: Sat, 03 May 2014 15:22:08 +0000
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