Islamabad: The Federal Board of Revenue (FBR) has notified its Sales Tax General Order (STGO) 103 of 2019 under which it has communicated that the imported Third Schedule items will be allowed clearance after affixation of stickers printed with retail price, till July 31, 2019.
After receiving many requests for date extension and applicants highlighting their issues, the board has offered the following relaxations:
- For any imports from North and South America, with a bill of lading date prior to June 30, 209 the condition of printing retail price is extended to August 31, 2019. However, they are subjected to the condition that imports are to declare prices of all item in accordance with section 2(27) of the Sales Act,1990 and are assessed for sales tax.
- If the retail prices aren’t printed when imported, they can be printed at port (as prescribed) or the importer shall have to print the retail price after good’s clearance and pay no less 130% of the customs value increased by any applicable charges, in regards of sales tax.
- The retail price taxation shall not be applicable to any item/ entry in the Third Schedule if the phrase ‘in retail packing’ appears on them and the items aren’t in retail packing at the time of import. All other items, even if not in retail packing, will be charged with sales tax.
- Under the Twelfth Schedule, the raw materials or intermediary goods with custom duty below 16%, are excluded from value addition tax. For commercial importers, however, who can sell these items without further processing will pay value addition tax.