25.03.2020 (Business Recorder) - Under the multi-billion-rupee relief package approved by Prime Minister Imran Khan, the government will abolish duties and taxes on the import and local supply of edible oil, the RBD palm oil, oil seed, pulses, sugar, wheat, rice, medical items/medicines and other essential food commodities having estimated revenue implications of over Rs 15 billion.
Sources told Business Recorder here on Tuesday that the government had decided to reduce/abolish withholding taxes and customs duty and Additional Customs Duty (ACDs) on the import of different essential food commodities such as edible oil, RBD palm oil, and other imported items. Under the package, the government would also abolish or reduce taxes on the local supplies of essential food items such as rice, pulses, wheat flour and may other items.
However, sales tax would not be abolished on such items. Sources said that the exemption from duties and taxes on supplies to the Utility Stores Corporation (USC) would also be considered. “The working to finalize the list of the items with revenue impact is being finalized for submission before the cabinet", they added.
The Federal Board of Revenue (FBR) will be required to move a summary to the federal Cabinet for approval of exemption of duties and taxes on the import and local supplies of essential food commodities. After approval from the Cabinet, the FBR will issue necessary notifications for the implementation of the decisions of the cabinet.
Copyright Business Recorder, 2020