Sales to be subjected to zero pc duty after 5 years: FBR

SOHAIL SARFRAZ

ISLAMABAD: The manufacturers-cum-exporters would pay zero percent duty on the sales of imported plant/machinery, equipment and capital goods, used in manufacturing of export goods, after a five-year period.

Under the Export Facilitation Scheme 2021 issued by the Federal Board of Revenue (FBR), the exporters would pay full duties and taxes on the goods, if sold or otherwise disposed of before the expiration of three years from the date of importation.

Seventy-five percent duties and taxes would be paid on the disposal of machinery/equipment after three and before four years from the date of importation.

Fifty percent duties and taxes would be paid on the disposal of machinery/equipment after four and before five years from the date of importation of such machinery.

If sold or otherwise disposed of after five years from the date of importation of such machinery/equipment, zero percent duties and taxes would be paid.

Under the new rules, the FBR has issued procedure on the acquisition of plant, machinery and capital goods.

The user shall be allowed to acquire plant, machinery, equipment, spares and capital goods required for the manufacture of output goods by the authorised user under these rules subject to authorisation by the Regulatory Collector in WeBOC or PSW.

Provided that plant, machinery, equipment, spares and capital goods imported shall be retained for a period of five years from the date of importation.

The disposal of plant, machinery, equipment, spares and capital goods, before the expiration of five years shall be subjected to the reduced rates of duty and taxes leviable at the time of importation, the FBR added.