ISLAMABAD, Jan 4: The Central Board of Revenue (CBR) has notified rules for exemption of Sales Tax on import of raw hides used in manufacturing of exportable goods.

To this effect an amendment was made in SRO 91 issued on February 10, 2001, by another notification issued here on Friday.

The exporters/manufacturers would now avail sales tax exemption under the Customs Rules “264-278” instead of procedures, conditions and restriction laid down in SRO 1319 issued on November 24, 1996.

The rules would come into force from June 18, 2001. The raw hides included raw and pickled hides and skins, wet blue hides and skins, finished leather and accessories, components and trimmings for leather manufacturers.

In the budget 2001-02, the CBR had already rescinded the SRO 1319 and has been incorporated in the Customs Rules under SRO 450, which was issued on June 18, 2001.

Earlier, the SRO 91 was issued by the Sales Tax to remove the objection raised by the Auditor General of Pakistan that exporters/manufacturers working under SRO 1319 were to pay sales tax on import of raw hides used in the manufacturing of leather products to be exported, as the subject SRO allow exemption of customs duty only.