ISLAMABAD, June 19: The government has extended the export target period for the industrial units for availing exemption from whole of customs duty and sales tax leviable at the time of importation of machinery.
Earlier, an industrial unit would have to achieve 50 per cent of the value of actual production in the first two years, and then each year the unit would have to achieve the 60 per cent export target of the value of actual production.
To give some more relaxation to these industrial units, the government has extended the export target of 50 per cent to be achieved within first three years, while the 60 per cent production would be achieved after succeeding three years.
The government had exempted customs duty and sales tax on machinery or spare parts thereof, as were not manufactured locally, imported for setting up a manufacturing unit or for the expansion, balancing, moderanization and replacement of existing units.
The notification reads as: “The Federal Government is pleased to direct that in its Notification No. S.R.O. 554(I)/98, dated the 12th June, 1998, the following further amendment shall be made and shall be deemed to have always been so made, namely: - In the aforesaid Notification, in the TABLE, after Sr. No. C in column (1), the following new serial number and the entries relating thereto in columns (1), (2) and (3) shall be added, namely: - D. Imports effected under Notification No. S.R.O. 962(I)/90, dated the 12th September, 1990, and Notification S.R.O. No.424 (I)/97, dated the 13th June, 1997. First two years. 50 per cent of the value of actual production. After succeeding three years 60 per cent of the value of actual production.”
