Collectors asked to charge 20 percent general sales tax on coconut oil

ISLAMABAD (January 15 2003) : Rejecting 15 percent GST on the clearance of coconut oil, the Central Board of Revenue (CBR) has directed all collectors of sales tax to charge 20 percent general sales tax (GST) on the import and supply of coconut (copra) oil under SRO 389(I)/2001.

Clarifying applicability of correct rate of sales tax, the CBR was of the view that the description given in the Pakistan Customs Tariff (PCT) heading 15.13 also include coconut oil.

Therefore, import/supply of coconut oil is chargeable to sales tax at the rate of 20 percent ad valorem under para 2(E) of SRO 389(I)/2001.

All collectors of sales tax should ensure imposition of 20 percent GST on the import/supply of coconut oil, CBR added.

In a clarification issued to the Pakistan Commodity Traders Association (PCTA), Karachi, CBR said that sales tax is required to be charged from the customers at sales stage under section 3(3) of the Sales Tax Act, 1990.

Regarding supply to unregistered sector, CBR added that such supplies are to be charged 3 percent 'further tax' under section 3(1A) of the sales tax act provided the supplies are not being made by the person registered as a retailer.

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