Islamabad: The Federal Board of Revenue (FBR), through a statutory regulatory order (SRO) on Wednesday, announced that it will grant industrial enterprises the status of ‘Greenfield Industry’ to qualify them for a sales tax exemption — with the decision having been taken after deliberations with the Engineering Development Board (EDB), a news source reported.
The initiative was announced through the SRO 777(I)/2020, which amended the Sales Tax Rules 2006. The board also shared the procedure to obtain a Greenfield Industry status for availing the said tax exemption. According to the procedure, any industry looking to avail this offer will have to submit an exemption application with the Commissioner Inland Revenue.
The Commissioner, after scrutinising the application, will forward it to the EDB for its expert opinion. The board will then submit its judgement on whether the process or technology being employed by the said industrial undertaking is or is not already under use in Pakistan.
After the report, the Commissioner will provide his approval for granting the Greenfield Industry Status to the selected company — but only after ensuring it meets all the requisite requirements.