ISLAMABAD (September 19 2005): The facility of zero-rating of sales tax for five export sectors have encouraged the unregistered industrial units to obtain sales tax registration for claiming zero-rating, which is only available to the registered units.
Sources told Business Recorder on Sunday that certain unregistered units, who were liable to registration have approached the CBR to obtain 'registration certificates.' These units did not bother to register themselves before the announcement of zero-rating regime. Now, they want to get registered for claiming zero-rating on the raw materials/inputs used by the industry as well as zero-rating on the electricity consumed by them. The owners of these units have never thought that the registered units could be given such facilities in Budget 2005-06.
The CBR is ready to register new applicants provided they fulfil the conditions required for obtaining facility of zero-rating under the relevant SROs. But they have to show annual sale above Rs 5 million to claim for the zero-rating of sales tax.
He Board has also decided not to ask about the previous records for new applicants of sales tax registration.
Sources said the decision of zero-rating has been instrumental in the broadening of the tax-base.