FBR describes import income tax rates under Section 148


KARACHI: Federal Board of Revenue (FBR) has described the rate of income tax at import stage under Section 148 of Income Tax Ordinance, 2001 to be applicable for tax year 2018/2019.

The FBR recently issued Withholding Tax Rate Card – Updated up to June 30, 2018 as per Finance Act, 2018 said that tax to be collected from every importer of goods on the value of goods:
According to rate card made available to PkRevenue.com the rate of advance income tax at one percent shall be for income tax return filers on the import value increased by customs duty, sales tax and federal excise duty. For non-filers the rate shall be 1.5 percent of the import value as increased by customs-duty, sales tax and federal excise duty. These rates shall be applicable on the import of:
1. (i) Industrial undertaking importing remeltable steel (PCT Heading 72.04) and directly reduced iron for its own use;
(ii) Persons importing potassic of Economic Coordination Committee of the Cabinet’s decision No. ECC-155/12/2004 dated the 9th December, 2004
(iii) Persons importing Urea;
(iv) Manufactures covered under Notification No. S.R.O 1125(I)/2011 dated the 31st December, 2011 and importing items covered under S.R.O 1125(I)/2011 dated 31st December, 2011.
(v) Persons importing Gold; and
(vi) Persons importing Cotton
(vii) Persons importing LNG
The tax shall be collected by collector of imports from import of goods at the same time and manner as the customs duty is payable in respect of goods imported.
The FBR said that this tax shall be final [for all other than those excluded under Section 148(7)&(8). This tax rate shall be adjustable for tax year under Section 148(7) in respect of:
a. Raw material, plant, equipment & parts by an industrial undertaking for its own use;
b. [motor vehicle] in CBU condition by manufacturer of motor vehicle].
c. Large import houses as defined / explained in 148(7)(d)
d. A foreign produced film imported for the purposes of screening and viewing]
2. The advance income tax rate shall be two percent for filer and 3 percent for non-filer for the persons importing pulses.
3. The tax rate shall be 3 percent for filers and 4.5 percent for non-filers in case of commercial importers covered under Notification No. SRO 1125(1)/2011 dated December 31, 2011 and importing items covered under the same SRO.
3A. For person importing coal, the tax rate shall be 4 percent for filers and 6 percent for non-filers.
4. For ship breakers on import of ship the advance income tax rate on import shall be 4.5 percent for filers and 6.5 percent on non-filers.
5. The FBR said that industrial undertaking not covered under Serial number 1 to 4, the tax rate shall be 5.5 percent for filers and 8 percent for non-filers.
6. For companies not covered under serial No. 1 to 5, the tax rate shall be 5.5 percent and 8 percent for non-filers.
7. Persons not covered under serial Nos. 1 to 6, the tax rate shall be 6 percent for filer and 9 percent for non-filers.

For detailed withholding tax card please click.

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