KARACHI: Realizing the huge undocumented sales of batteries in the country, the Federal Board of Revenue (FBR) has imposed advance tax on sales of batteries.
Through Finance Bill 2017, amendment has been made to Income Tax Ordinance, 2001 regarding advance tax on sales to distributors, dealers & wholesalers and retailers under Section 236G and 236H of the Ordinance. The Bill proposed to include ‘batteries’ to the list of specified items.
At present every manufacturer, distributor, dealer, wholesaler or commercial importer of the following items is required to collect advance tax on sale of such items to distributors, dealers, retailers and whole sellers at varying rates ranging from 0.1 percent to 1.4 percent on the gross amount of sales –
(a) electronic;
(b) sugar;
(c) cement;
(d) iron and steel products;
(e) fertilizer;
(f) motorcycles;
(g) pesticides;
(h) cigarettes;
(i) glass;
(j) textile;
(k) beverages;
(l) paint; or
(m) foam.
