The revenue board has relaxed the provision of advance tax (AT) payment for several sectors until June 30 following complexities over releasing imported products from customs points.
The VAT (value-added tax) wing found that importers, public and private alike, were facing difficulties with AT payment due to shortages of running capital.
Addressing the problem, the National Board of Revenue (NBR) issued a guideline on Thursday for customs and VAT officials by relaxing the AT payment provision.
First secretary of VAT policy wing Hasan Muhammad Tarek Rikabder signed the order.
Up till June 30, importers will be able to release their goods through undertaking on payment of AT later as per law, the guideline said.
It stipulates that concessionary tax rates are valid for capital machinery, cotton, polyester yarn, viscose yarn, power producing equipments and spare parts.
Export-oriented industries having bonded warehouse licence, deemed exporters, diplomatic bonded warehouse licence holders are also in the list of the relaxed sectors.
Also, government, semi-government, autonomous bodies, UN organisations, embassies, government projects, specially privileged persons and tax-exempted organisations under different treaties will be able to release importables without paying AT.
Import of products under the Presidents (remuneration and privileges Act 1975, defence store, relief goods, products for the blind and deaf are also included in the list.
In the Finance Bill 2019, the government imposed advance tax at a rate of 5.0 per cent on all import products by replacing advance trade VAT (ATV). Earlier, ATV was imposed on commercial imports only.
The new AT took effect from June 13, the day of budget presentation, under section 3 of the Provisional Collection of Taxes Act 1931 (Act no XVI of 1931).
In the guideline, the VAT wing has instructed the customs and VAT officials to conduct customs assessment and release import goods without AT.
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