ISLAMABAD: Federal Board of Revenue (FBR) has said that manufacturers, who were covered under rescinded SRO 1125, shall pay one percent advance income tax on imported goods.
The FBR issued Circular No. 02 of 2020 to clarify advance income tax rate under Section 148 of the Income Tax Ordinance, 2001 on import of raw material by manufacturers covered under the rescinded SRO 1125(I)/2011.
The FBR said that through the Finance Act, 2020, the rate of advance tax under Section 148 to the Income Tax Ordinance, 2001 had been changed to one percent, two percent and 5.5 percent in respect of goods classified under Part I, II and III of the Twelfth Schedule respectively.
The FBR clarified that the rate of advance tax under Section148 in case of raw material imported by manufacturers covered under the rescinded SRO 1125(I)/2011 as it stood on June 28, 2019 on import of items covered under the aforementioned SRO shall be one percent irrespective of whether such goods are classified in Part II or III of the Twelfth Schedule.
