Pakistan to Levy 19% Consumption Tax on Some Raw-Material Importers

According to Pakistani Commercial Record Newspaper on Dec. 4, Pakistani Federal Board of Revenue (FBR) plans to issue a new special taxation decree about levying a consumption tax at 19%, including 16% general and 3% value-added taxes, on some raw-material importers under five exporting sectors (textile, leather, carpet, medical equipment and sports equipment) enjoying zero-tariff import of raw materials.

As reported, if the imported raw materials are finally supplied to enterprises or individuals registered with the FBR under above five sectors, the importers can still enjoy the exemption from the consumption tax; but if those are finally supplied to individuals or enterprises without such registration or to any manufacturers outside the five sectors, that 19% tax shall be imposed.

By report, in Nov. 2011, the FBR decided to cancel tariffs and general consumption taxes on commercial raw-material imports by the five sectors.