ISLAMABAD (September 14 2006): The Central Board of Revenue (CBR) will collect 15 percent sales tax on import and local supply of 'uninterrupted power supply (UPS) of power rating up to 1.5 KVA' and battery charges. In this regard, the Board on Wednesday issued instructions to all collectors of sales tax for compliance.
According to the directive, the Board has included Pakistan Customs Tariff (PCT) headings 8504.4010 and 8504.4020 in the 'negative list', covered under SRO 530(I)/2005 and SRO 70(I)/2006.
The Board had issued a list of items on which sales tax zero-rating was not available at the import stage under SRO 530(I)/2005 and SRO 70(I)/2006. The issuance of list had restricted customs officials at the ports from levying sales tax at the rate of zero percent on only the items, which are covered under these notifications. Thus, the customs would collect 15 percent sales tax on import of items not entitled to zero-rating as specified in the 'negative list' circulated to the field formations.