Import advance tax rates for filers, non-filers to be applicable during current fiscal year

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KARACHI: Federal Board of Revenue (FBR) has issued withholding tax card for tax year 2019 and explained the rate of tax for filers and non-filers on import of various type of goods by different segments.
According to the withholding tax card under section 148 of Income Tax Ordinance, 2001 tax to be collected from every importer of goods on the value of goods by collector of customs.

The rate of tax would be paid by
Filer: 1 percent of the import value increased by Custom –duty, sales tax and federal excise duty.
Non-Filer: 1.5 percent of the import value as increased by customs-duty, sales tax and federal excise duty.
These rates would be payable on import of
(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 FBR said that on import of pulses, the filer shall pay two percent of the import value as increased by customs-duty, sales tax and federal excise duty. And non-filer shall pay at 3 percent advance income tax on import of such goods.

The rate of import tax for commercial importers 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 the 31st December, 2011, shall be three percent for filer of income tax returns and 4.5 percent for non-filers.
The rate of advance tax on import of coal shall be 4 percent for filers and 6 percent for non-filers. The ship breaking industry shall pay at 4.5 percent in case of filer and 6.5 percent in case of non-filers.
The import tax shall be 5.5 percent for filers and 8 percent for non-filers on industrial undertakings not covered under above conditions.
The FBR said that the persons not falling under concessionary regime shall pay six percent in case of return filers and 9 percent in case of non-filers.

For detailed withholding tax rates for tax year 2019 please visit: FBR issues withholding tax card for year 2018/2019

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