Standardized WHT regime for Imports

FBR through its S.R.O 140 dated February 26, 2013 has made amendments in the second schedule to the Income Tax Ordinance. Through this notification Withholding Tax on Imports are standardized i.e a uniform rate of 5% shall be applicable on Import.

In exercise of the power conferred by sub-section (2) of Section 53 of the Income Tax Ordinance 2001, the Federal Government is pleased to direct that the following further amendments shall be made in the second schedule to the said ordinance namely:

In the aforesaid Schedule:

a)      in Part 11,- clauses (9), (9A) and (13G) shall he omitted; and

b)      in Part IV, in clause (57)
 i.            for the word “sections’, occurring first, the word “section” shall be substituted: the figures "113” and “148” shall be omitted; and

ii.            in sub-clause (vi) the second proviso shall be omitted, it added.

Prior to this Notification these Clauses were as follows:

    (9A) Tax under section 148 shall be collected at the rate of 3% on the import value of raw  
             material imported by an industrial undertaking for its own use.

             Provided that the rate of 3% shall be applicable on production of an exemption certificate 
             issued by the commissioner.

    (9B) Tax under section 148 shall be collected at the rate of 1% on import value of Remittable 
             steel (PCT Heading 72.04) imported by an industrial undertaking for its own use.

    (13G) Tax Under section 148 on the following items shall be collected @ 1% of their import 
               value as increased by [Custom-duty, sales tax and Federal Excise duty], if any levied 
               thereon:

                               iv.            Gold

                                v.            Mobile Telephone Sets

                              vi.            Silver