ISLAMABAD: The Federal Board of Revenue (FBR) is considering a proposal made by Pakistani National Shipping Corporation (PNSC) to lower taxes on the acquisition of new ships.
The PNSC has moved a draft of proposals to the FBR through the Ministry of Ports and Shipping. According to the draft, the higher rates of taxes, sales tax and customs duties on the acquisition of ships was hampering its smooth functioning as well as making the business costlier as compared to shipping corporations of other countries.
Aources told Customs Today that as per Merchant Marine Policy 2001, exemption from payment of all import duties and surcharges (taxes) on ships and all flouting drafts up 2020 was announced. However, sales tax and customs duties at the rate of 17 percent and 10 percent, respectively, were being collected from the ship acquisition.
The sources said that the PNSC made a number of lengthy correspondences with the FBR through the Finance Ministry for getting full exemptions or reductions in rates of taxes but to no avail.
Therefore, the sources added that this issue was taken up with the prime minister during his visit to Port Qasim and he directed the finance minister to resolve the issue.
In a follow up meeting, it was decided that mater would be discussed in ECC and prior to discussion at ECC;, the finance ministry forwarded the issue to FBR for appropriate consideration and adequate response.
The source further said that toeing the given lines by the finance ministry, the concerned quarters of FBR were holding discussions on the pack of proposals moved by the PNSC. The main objective of the ongoing discussions is to search out such a solution which may be acceptable to PNSC as well as may not hurt the revenue collection from shipping sector.
The source added that the decisions made on the proposals would be included in the upcoming budgetary proposals regarding taxation for fiscal year 2016-17.
