ISLAMABAD (June 26 2003) : Rectifying an anomaly, the Central Board of Revenue (CBR) has excluded maintenance spares and consumable parts from the scope of tax concessions provided under SRO 554 (I)/98, an amendment introduced in the notification said.
Now, spares and consumables like needles, lubricants, reeds, card-clothing, etc, will not come under the purview of SRO 554 (I)/98 of June 12, 1998.
Member Direct Taxes Vakil Ahmed Khan said here on Wednesday that a number of representations have been received from All Pakistan Textile Mills Association (Aptma) and the individual textile mills, asking to review a recent decision disallowing duty-free release of spares, while the recent changes were a conscious policy decision.
Vakil said that according to the scheme of all concessionary notifications spares imported along with the machinery in reasonable quantity were given same concession as was admissible to the machinery.
However, maintenance spares and consumables parts, which were replaced on account of wear and tear at regular intervals, were not allowed such concession.
Such spares were, however, included inadvertently in the scope of concession provided under SRO 554 (I)/98, which created an anomalous situation.
The member direct taxes also said that in line with the general scheme of other SROs, through a conscious decision in the Budget 2003-04, SRO 554 (I)/98 has been amended to exclude maintenance spares and consumable parts from its scope.
Therefore, spares and consumables like needles, lubricants, reeds, card-clothing, etc, would now be outside the scope of SRO 554 (I)/98, Vakil added.