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1 % Withholding Tax 0n goods imported for zero rated regime- Federation of Pakistan Chambers of Commerce and Industry

Islamabad: Mr. Shakeel Ahmed Dhingra, Vice President (Elect) and Chairman, FPCCI Standing Committee on Liaison with FBR has appreciated Mr. Shahid Asad, Member Inland Revenue, FBR for taking immediate action and issuing clarification for charging withholding tax @1% from commercial as well as industrial importers, instead of 5%, at import stage on items specified in SRO 1125(I)/2011 dated 31 December 2011 regarding duty free import of raw material for five zero rated export oriented sectors viz textiles, leather, carpets, surgical goods and sports goods.

Mr. Shakeel Ahmed Dhingra elaborated that in the absence of Member Inland Revenue FBR, the Customs authorities were charging withholding tax @ 5% on the goods imported under SRO 1125(I)/2011 for the zero rated regime due to wrong interpretation of the law. However, when Member Inland Revenue was contacted on his return from abroad by Mr. Dhingra, he immediately issued the instruction to the concerned authorities for levying 1% tax.

For more information, contact:
Syed Masood Alam Rizvi
Secretary General
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road, Shahra-e-Firdousi,
Karachi-75600, Pakistan
Tel: +9221 3587 3691
Fax: +9221 3587 4332
Email: info@fpcci.com.pk

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