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July 31, 2003
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Thursday
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Jumadi-ul-Awwal 30, 1424
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SRO507 to cover around 16 items
By Our Reporter
ISLAMABAD, July 30: The government has decided to introduce a list of items manufactured from imported raw materials under the SRO507 which could only be supplied to registered persons for claiming input tax adjustment.
Official sources told Dawn on Wednesday that the list would include around 16 items, which could only be supplied to the registered persons.
Besides this list, the officials said all other items manufactured from imported raw materials under the SRO507 could be supplied to the non-registered persons for claiming input tax adjustment.
According to the officials, the list was proposed by Federation of Chambers of Commerce and Industry (FPCCI) following the recommendation of the relevant stakeholders and discussions with the senior tax officials.
The review of the SRO507 was undertaken following the direction of the president General Pervez Musharraf to the tax officials to amend the notification suitably to provide relief to the business community.
The government in the budget 2003-04 announced that manufacturers could not get input tax adjustment on local supply of goods manufactured from raw materials, parts, sub-components and components imported under various concessionary notifications to persons not registered or enrolled under the Sales Tax net.
The government has partially amended the SRO507 through another SRO592 to exempt the application of SRO507 on non-taxable goods to un-registered persons and the direct supply to the end consumers.
The officials said that despite all these amendments there are a number of wholesalers and retailers which were not registered with the sales tax departments and their businesses are directly affected by the provisions of the SRO. According to the officials, the introduction of the list under the SRO would now ease the impact on local supply of goods to non-registered persons.
The list would be finalized following the approval of the finance minister, Shaukat Aziz, and the list would be issued after vetting, the officials said.
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