ISLAMABAD: The Federal Board of Revenue (FBR) has fixed the value of locally produced steel and scrap goods pertaining to payment of sales tax.
As per the SRO issued by FBR on Wednesday, the values have been fixed in respect of locally produced goods for the purpose of payment of sales tax on ad valorem basis.
Documents seen by Profit state that FBR has fixed Rs140,000 per metric tonne value of steel bars and other long profiles, Rs125,000 per metric tonne steel billets, Rs120, 000 per metric ton steel ingots, Rs120,000 per metric tonne ship plates and Rs118,000 per metric tonne on re-rollable iron and steel scrap.
In case the value of supply of the goods specified in the notification is higher than the values fixed, the value of goods shall be at the same rate at which the supply is made.
Hybrid Electric Vehicles
The FBR has also cancelled its notification pertaining to imposition of 50 per cent sales tax on upto 1800CC and 75pc on 1801 cc to 2500cc Hybrid Electric Vehicles (HEVs).
It is pertinent to note the government has taken back this sales tax in the budget announced on June 11, 2021.
Imposition of withholding tax on online marketplace
The FBR has also imposed a 2pc withholding tax on the gross value of supplies on online marketplaces, other than active taxpayers, from September 1, 2021.
The 2pc sales tax of gross value of supplies would be applicable on the online marketplace.
The online marketplace would cover e-commerce platforms, portals or similar means, which facilitate sale of goods, including third party sale.
According to the Finance Act 2021, the online market place includes an electronic interface such as a marketplace, e-commerce platform, portal or similar means, which facilitate sale of goods, including third party sale by controlling the terms and conditions of the sale; authorising the charge to the customers in respect of the payment for the supply; or ordering or delivering the goods.
Meanwhile, the revenue body on Thursday issued a notification for the imposition of withholding tax on online markets that shall be effective from September 1, 2021.
In the budget FY22, the government had proposed a withholding tax at the rate of 2pc of the gross value of supplies made by persons other than active taxpayers.
