ISLAMABAD, Aug 28: The government on Thursday exempted 16 per cent general sales tax (GST) on import of mineral oil in a bid to reduce the cost of agriculture products.

A sales tax notification of SRO897 of 2008 has allowed the facility to importers of mineral oil not exceeding 250 tons for manufacture of pesticides subject to a certification by Plant Protection Department.

The government has already exempted customs and income tax duty on import of the mineral oil.

According to the notification, the facility would be subject to a certificate by Plant Protection Department specifying the quantities to be imported by the person registered with them as importer, formulator or manufacturers of pesticides;

The Plant Protection Department shall ensure that total quantity does not exceed 250 tons; and goods are imported on or before October 15, 2008.

The acrylic polymer in primary form was zero-rated vide SRO 509 of 2007. However, its PCT heading was mentioned as 3906.9080 instead of 3906.9090.

The mistake was rectified vide SRO 538 of 2008. Now this correction has been given retrospective effect vide SRO 894 of 2008 issued here on Wednesday for the benefit of general public.