ISLAMABAD: Federal Board of Revenue (FBR) has allowed sales tax exemption on import of vehicles by the Chinese companies for construction work of China Pakistan Economic Corridor (CPEC).
The FBR, exercising powers conferred by clause (a) of sub-section (2) of section 13 of the Sales Tax Act, 1990, amended SRO 499(I)/2016 dated July 27, 2016 and issued SRO 721(I)/2016. In the latest SRO, the Board allowed sales tax exemption on import of plant, machinery and equipment including dumpers and special purpose motor vehicles.
In the previous SRO, the FBR allowed sales tax exemption on import of equipment and construction machinery by M/s China State Construction Engineering Corporation Limited for construction of Karachi-Peshawar Motorway and M/s China Communication Construction Company for the construction of Karakorum Highway.
The FBR, exercising the powers conferred upon it by section 19 of the Customs Act, 1969 (IV of 1969), also issued SRO 731 (I)/2016 to allow exemption from customs duty on the said vehicles. The Board amended the Notification No SRO 642(I)/2016, dated 27th July, 2016.
