FBR imposes 16% GST on Agri machinery and CNG kits – Alfalah Securities Limited
Karachi, June 06, 2011 (PPI): FBR has imposed 16% GST on locally manufactured and imports of agricultural machinery which was previously exempted.
According to Alfalah Securities Limited, S.R.O 480 (I)/2011, sales tax would be charged on the various different agriculture machineries like chisel plow, ditcher, tractor rear etc. Sales tax would be implemented on the machinery used in the stages of seeding/ planting equipments, irrigation, drainage and agro-chemical application, harvesting, threshing and storage equipment and further to post-harvest handling and processing.
FBR would also impose sales tax on CNG kits which was previously tax exempted. This would further eliminate tax discrimination between local manufacturers who sell CNG fitted vehicles and vendors of CNG kits. Moreover FBR would collect 50% regulatory duty on the imports of cars and jeeps above 1801cc to 3000 cc above (except electric hybrids). These measures are taken to broaden the tax base and would indirectly raise tax from the agriculture sector.