KARACHI (January 08 2005): The Central Board of Revenue (CBR) has extended the sales tax exemption on unsold stocks of the importers, which expired on December 31, till March 31. The Sales Tax Collectorate sources said on Wednesday that the extension on unsold stocks had been granted on the recommendation of Karachi Chamber of Commerce and Industry (KCCI) and other trade bodies.
Under the new CBR rules, contained in the new budget, the commercial importers have to pay sales tax at minimum 10 percent value addition at import stage. The tax is now deducted at source.
However, with regard to stocks, carried forward from the last year, the importers sought some grace period to dispose of the stocks and then pay the tax.
The CBR, however, allowed them a grace period up to December 31 to sell the old stocks and pay the due tax. They were also asked to submit separate monthly sales tax return for old stocks.
The request for extension in exemption up to March 31 was discussed at a meeting of all sales tax collectors with the representatives of the KCCI and other trade bodies in the Sales Tax House here recently.
In a bid to facilitate the trade, the meeting agreed to the request and sent a recommendation to the CBR to extend the exemption period up to March 31, which was approved by the CBR.
The sources, however, made it clear that the trade had been informed to clear their unsold stocks by the extended date, as no further extension would be allowed.