Unsold stock allowed to be exhausted till 31st: 15pc sales tax on 10 consumer items
By Our Reporter
ISLAMABAD, July 8: The government has allowed manufacturers of 10 consumer items to exhaust till July 31 unconsumed, unsold stocks of finished goods and packing materials on which retail price was not printed or if it was printed, it did not represent the new price structure, a senior sales tax official told Dawn on Friday.
The government in the budget 2005-06 had announced to levy 15 per cent sales tax on printed retail price to be effective from July 1 on soap, detergent, perfumery and cosmetics, shaving cream, toothpaste, shampoos, tea, milky drink and powder drink, biscuits and confectionary. The tax would be collected at manufacturing stage.
For availing the facility, the CBR announced conditions for the registered taxpayers for exhausting unconsumed, unsold stocks of finished goods and packing materials for such items/goods without printing or affixing the retail price subject to the conditions: sales tax is actually charged and paid on the basis of retail price at which the goods are sold to the general body of consumers; the manufacturers shall declare such retail price to the collector of sales tax having jurisdiction; the manufacturers shall furnish complete quantitative declarations for the aforesaid unconsumed/unsold stocks of finished goods and packing materials to the collector of sales tax having jurisdiction latest by July 15, 2005.
And the manufacturers should obtain similar declarations from their distributors ensuring that sales tax is charged on the retail price and the differential amount of sales tax is duly deposited with the government and no further extension shall be granted to exhaust the unconsumed stocks after the July 31. Upon expiry of the due date, all manufacturers shall print the new price structure—retail price along with the amount of sales tax, as required under the law.
