KARACHI: Federal Board of Revenue (FBR) has allowed duty concessions at 3 percent and five percent on import of machinery and vehicles for new and under construction power projects.
According to Fifth Schedule of Customs Act, 1969 updated by Federal Board of Revenue (FBR), the following goods are allowed concessionary rate of 3 percent and five percent of customs duty.
Machinery, equipment and spares meant for initial installation, balancing, modernization, replacement or expansion of projects for power generation through gas, coal, hydel and oil including under construction projects.
Construction machinery, equipment and specialized vehicles, excluding passenger vehicles, imported on temporary basis as required for the construction of project.
Machinery, equipment and spares meant for initial installation, balancing, modernization, replacement or expansion of projects for power generation through oil, gas, coal, wind and wave energy including under construction projects, which entered into an implementation agreement with the Government of Pakistan.
Construction machinery, equipment and specialized vehicles, excluding passenger vehicles, imported on temporary basis as required for the construction of project.
This concession shall also be available to primary contractors of the project upon fulfillment of the following conditions, namely:-
(a) the contractor shall submit a copy of the contract or agreement under which he intends to import the goods for the project;
(b) the chief executive or head of the contracting company shall certify in the prescribed manner and format as per Annex-A that the imported goods are the project’s bona fide requirements; and
(c) the goods shall not be sold or otherwise disposed of without prior approval of the FBR on payment of customs-duties and taxes leviable at the time of import;
Temporarily imported goods shall be cleared against a security in the form of a post-dated cheque for the differential amount between the statutory rate of customs duty and sales tax and the amount payable under this Schedule, along with an undertaking to pay the customs duty and sales tax at the statutory rates in case such goods are not re-exported on conclusion of the project.
