Federal Board of Revenue (FBR) has decided to hold the operation of SRO 231(1) 2011 of 15th of this month in abeyance to address the issue of shortage of raw materials for export sectors.
All import consignments will be cleared according to SRO.509 (1) 2007 dated 09-06-2007 which was applicable up to 15-03-2011.
According to FBR notification of March 29, 2011 addressed to its Chief Collectors Customs South and North regions, which was received by APP here on Wednesday through Pakistan Hosiery Manufacturers and Exporters Association (PHMA), special excise duty shall also not be charged on the consignments stuck up with Pakistan Customs at ports.
It said the Government/FBR has decided to review the zero-rating scheme of SRO.509(1) 2007 dated 09-06-2007 and new notification in this regard will be issued shortly which will be effective from 15-03-2011. However, the reduced tax rates will continue to be effective.
Since most of the import consignments lying at the ports are held up due to application problem of SRO. 231(1) 2011 , the manufacturers of five major export sectors are facing shortage of raw materials, the FBR communiqu said.