ISLAMABAD (July 04 2005): The Central Board of Revenue (CBR) has decided to restore 6 percent withholding tax on import of three items. These are Sodium Hydroxide (Caustic Soda), solid (PCT heading 2815.1100); Sodium Hydroxide (Caustic Soda), in aqueous solution (PCT 2815.1200); and Disodium carbonate (soda ash) (PCT heading 2836.2000).
Official sources told Business Recorder on Sunday that the withholding tax was inadvertently reduced from 6 percent to one percent on these three items. Recently, the CBR had issued SRO 638(I)/2005 to reduce withholding tax from 6 to 1 percent on 152 items to facilitate the leading export industries. The notified list included some items on which the withholding tax was not required to be reduced, as it does not relate to the concerned export industries. The business community pointed out to the CBR that it is necessary to exclude these items from the list.
The CBR has decided to amend SRO 638(I)/2005 after vetting of draft SRO from the Law and Justice Division. The amended notification will be issued on Monday, July 4.
The CBR has used the powers conferred by sub-section (2) of section 53 of the Income Tax Ordinance 2001 to notify the decision.