Finance Bill 2017: Income tax collected on fertilizer import brought into FTR

KARACHI: The advance income tax collected on import of fertilizer has been proposed to bring under Final Tax Regime (FTR).

The Finance Bill, 2017 proposed omit clause (b) Sub-Section 7 of Section 148 of Income Tax Ordinance, 2001. After the amendment the tax collected under section 148 on import of fertilizer from a person who is engaged in manufacture of fertilizer would now be treated as a final tax on income arising from import and sale of such fertilizer.

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Under the provisions of Sub-section (7) of section 148 of the Ordinance, the tax required to be collected under section 148 is treated as a final tax on the income of the importer arising from the imports.

However, the provisions of Sub-section (7) are not applicable to the following :

(a) raw material, plant, machinery, equipment and parts by an industrial undertaking for its own use;

(b) fertilizer by manufacturer of fertilizer;

(c) motor vehicles in CBU condition by manufacturer of motor vehicles;

(d) large import houses, who fulfill certain specified conditions; and

(e) a foreign produced film imported for the purposes of screening and viewing.