June 22, 2006	Thursday	Jumadi-ul-Awwal 25, 1427

ISLAMABAD, June 21: The government on Wednesday levied general sales tax (GST) on import of all active ingredients of pesticides as well as finished pesticides on fixed value addition of 15 per cent at import stage.

The decision was announced through a sales tax notification of SRO645 of 2006 by superseding the earlier budgetary notification of SRO553 of 2006. Earlier, the government announced GST levy at import stage on finished pesticides.

Under the new notification, sales tax will be applicable on all pesticides, whether manufactured locally or imported, shall be collected at import stage on the import of active ingredients of pesticides as well as finished pesticides on fixed value addition of 15pc at import stage, and thereafter no further sales tax shall be levied or charged on all stages of local supply of all types of pesticides.

However, it was made clear that after payment of sales tax at import stage on 15pc value addition, no manufacturer, wholesaler, dealer, retailer of pesticides shall charge any amount of sales tax on local supply of pesticides.

Through the same notification, the government also notified the list of the active ingredients of pesticides for fixed value addition of 15pc to be subject to 15pc GST. Around 74 active ingredients for pesticides registered by the Department of Plant Protection under the Agricultural Pesticides Ordinance, 1971 (II of 1971), stabilisers, emulsifiers and solvents.