ISLAMABAD, Jan 15: The Central Board of Revenue (CBR) has reduced the rate of withholding tax from 6 per cent to 1 per cent on import of potassic fertilizers.

The decision was announced through an income tax notification SRO37 by amending the second schedule, in Part II, of the income tax ordinance 2001.

According to the notification, the tax under section 148 of the income tax ordinance, 2001 shall be collected at the rate of one per cent of its import value of potassic fertilizers as increased by customs duty and sales tax, if any, levied thereon.

The CBR also reduced the rate of withholding tax from six per cent to two per cent on import of blankets and acrylic yarn. The decision was announced through an income tax notification SRO38 by amending the second schedule in Part-II of the Income Tax Ordinance, 2001.

According to the notification, in respect of import of blankets (acrylic) and acrylic yarn of 32 to 40 metric count, if imported for self-consumption by blanket manufacturers, the tax under section 148 of the income tax ordinance, 2001 shall be collected at the rate of two per cent of the value of such items as increased by customs-duty and sales tax, if any, levied thereon.