The National Board of Revenue has waived the advance tax (AT) on import of raw materials of poultry, livestock, fisheries and dairy feeds and machinery for feed manufacturers, dredger and one-day old chicks.
The NBR’s value-added tax wing on Wednesday issued a statutory regulatory order exempting the importers from payment of 5 per cent AT on import of the products.
The benefit will be applicable on the import of more than 80 types of raw materials and machinery for the poultry, livestock, dairy and fisheries sectors and feed manufacturers.
These products have been enjoying exemption from payment of customs duty, regulatory duty, VAT and supplementary duty at the import stage since 2017.
The products include poultry feed grade coral and similar materials, soya bean flour and meal, fish oil, vegetable fats, vitamins or minerals, vitamin premix, probiotics, food supplements or additives, limestone, chlorine, sodium hydrogen sulphate, stabiliser and indicator for use in poultry, dairy and fisheries, veterinary medicines, enzymes and test kits for use in fisheries.
The products along with soya bean meal, corn gluten meal, rapeseed extraction and one-day old chicks will now be exempted from paying the AT.
Officials said that the NBR offered the exemption as the importers of the sectors had been facing problems in getting rebates on the AT paid at the import stage.
The AT paid at the import stage is refundable and adjustable, they said.
Field level VAT offices were receiving a large number of rebate claims from the sectors.
The importers cannot adjust the AT as there is no VAT at any local stage — production, supply and retail.
A huge amount of rebate claims remained unsettled at the field offices as there were no specific directives on paying back the tax.
Although the revenue board recently issued guidelines on settling the rebate claims, the sectors were exempted from the payment of AT as imposition of the tax had no impact on revenue collection, officials said.
Ultimately, the revenue board has to give the AT back to the importers as they do not have to pay any VAT at the other stages, they said.
The process is troublesome and time-consuming for the importers, they added.
Businesses from the sectors have also been demanding withdrawal of the AT as imposition of the tax has increased the cost of business.
According to the SRO, poultry, livestock and dairy feed manufacturers, animal health company and other poultry and livestock enterprises registered with the Department of Livestock Services and fish feed manufacturers and fisheries companies registered with the Department of Fisheries will get the benefit on the import of the raw materials and machinery.
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