Important Updates

• Vide SRO 1486(I)/2012 dated 24th December, 2012, following further amendments have been made in Chapter XI (Special Procedure for Payment of Sales Tax by Steel-Melters, Re-Rollers and Ship Breakers) of the Sales Tax Special Procedure Rules notified vide SRO 480(I)/2007 dated 9th June, 2007.

(i) Rate of sales tax per unit of electricity consumed has been reduced from Rs. 7/unit to Rs. 4/unit.

(ii) Sales tax has been imposed on import of re-meltable iron and steel scrap @5% or Rs.1600/MT, whichever is higher. Sales tax paid on import of such scrap shall be adjustable.

(iii) Formula for calculating sales tax on electricity produced by gas generators and amount of sales tax to be shown on sales tax invoices have also been modified accordingly.

• Vide SRO 1487(I)/2012 dated 24th December, 2012 an amendment has been made in Part IV of the Second Schedule to the Income Tax Ordinance, 2001. Manufacturers supplying goods to distributors, dealers and wholesalers have been exempted from the provisions of section 153A of the Ordinance till 30.06.2013 which means that they will not be required to collect 0.5% of the gross amount as tax from such buyers till the said date.