|
|
|
| June 27, 2005 | Monday | Jumadi-ul-Awwal 19, 1426 |
Income tax on exportable items raised
ISLAMABAD, June 26: The government has raised the rate of income tax from 0.75 per cent to one per cent on exportable products of textile, leather, sports, surgical and carpets to be effective from July 1.
Officials told Dawn on Saturday that the government also increased the rate of income tax from 1.25 per cent to 1.5 per cent on export of raw cotton and cotton yarn.
The government introduced four slabs of income tax on exportable products — 0.75 per cent, one per cent, 1.25 per cent and 1.5 per cent — through Finance Act 2005 by introducing amendments to the seventh schedule of the Income Tax Ordinance 2001.
According to the officials, the income tax rate on these sectors was raised following the zero rate of customs duty and sales tax on import and local supply of these products.
Other items which are already subjected to one per cent income tax included refined/treated salt, ground barytes, granite blocks and slabs, and heat insulating bricks.
All these items were placed in the part II of the seventh schedule of the Income Tax Ordinance 2001.
Now, the 0.75 per cent income tax would only be levied on engineering goods, including electrical items; jewellry, pharmaceuticals, ceramic ware, cutlery, wooden furniture and wooden doors and windows.
All these items were placed in the part I of the seventh schedule.
The items placed in part III of the seventh schedule to be subjected to 1.25 per cent income tax on export included rice, rice bran, wheat bran and lamb hide.
|
|
|
|
