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.
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.
