ISLAMABAD, July 8: The government has exempted the levy of 6 per cent withholding tax on import of wheat through amendments introduced in the income tax ordinance.

While, the government in the budget of 2005-06 through a customs notification SRO567 of 2005 had already exempted the levy of customs duty on import of wheat (PCT 1001.0000) placed at serial no. 108 of the notification.

Member Income Tax Salman Nabi told Dawn on Friday that through the Finance Act 2005, an amendment had been made in part VI of the second schedule of the income tax ordinance subsequently in Section X of clause 56, the import of wheat by all sector had been exempted from the levy of withholding tax.

Initially, the government proposed in the finance bill 2005 that import of wheat could only be imported by the TCP. Later, through amendments introduced by Finance Act 2005, import of wheat was allowed to all persons duty free.

He said that there was no need for issuing any SRO because amendment had been made in the law.

Meanwhile, an official spokesman of the ministry of food, agriculture and livestock said that the ministry had already started consultations with the private sector before issuing the final specifications for wheat import.

He said that specifications had been finalized by the MINFAL and would be issued in consultation with the stakeholders shortly.