ISLAMABAD, June 18: The government has reduced general sales tax (GST) from 20 per cent to 15 per cent on edible oil produced locally from imported oilseeds.

Officials said on Wednesday the decision was taken following the persistent demand from the stakeholders asking for relief at local stage.

The government in the budget 2003-04 levied 20 per cent GST on imported oilseeds. Moreover, 20 per cent GST was also levied on oil produced locally from such imported seeds.

Similarly, to avoid double taxation the government has withdrawn GST on edible oil extracted from oilseeds against bill of entry filed on or before June 6, 2003.

This means that GST would be applicable only on such edible oil produced from GST levied oilseeds, added the officials.

For implementation of the decision, the CBR issued on Wednesday two separate sales tax notifications. The SRO590 reads: “The federal government is pleased to direct that in its notification SRO389 issued on June 18, 2001, the following further amendments shall be made and shall be deemed to have been so made on June 7, 2003, namely — in the aforesaid notification, in the table — against serial No 2A in column (1), in column (2) for the words “soya-bean” the words “import of ground nut” shall be substituted; against serial No 2B in column (1), in column (2) for the words “Ground nut”, the words “import of ground-nut” shall be substituted; against serial No 2C in column (1), in column (2) for the words “palm” the words “import of palm” shall be substituted; against serial No 2D in column (1), in column (2) for the words “sunflower seed”, the words “import of sunflower seed” shall be substituted; against serial No 2E in column (1), in column (2) for the words “coconut (copra)” the words “import of coconut (copra) shall be substituted; against serial No 2F in column (1), in column (2), for the words “rape” the words “import of rape” shall be substituted; against serial No 2G in column (1) in column (2), for the words “Other fixed vegetable” the words “import of other fixed vegetable” shall be substituted; against serial No 2H in column (1), in column (2) for the word “vegetable” the words “import of vegetable” shall be substituted; against serial No 2I in column (1), in column (2) for the words “edible mixture”, the words “import of edible mixtures” shall be substituted and against serial No 2J in column (1), in column (2) for the word “vegetable” the words “import of vegetable” shall be substituted.

Another sales tax SRO591 issued on Wednesday reads: “The government is pleased to exempt edible oil extracted from oilseeds imported against bills of entry filed on or before the June 6, 2003.”