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Importers express concerns over levy of ST & FED on imported goods

Importers express concerns over levy of ST & FED on imported goods

KARACHI: Due to imposition of sales tax on imported goods, the clearance of consignment of daily consumer goods, auto parts and home appliances are halted. Federal Board of Revenue (FBR) imposed sales tax (ST) and federal excise duty (FED) on imported goods on retail prices instead of imported prices. Federal Board of Revenue Policy Wing already informed all the Customs collectorates through letters.

Sources told that till June 20, 3019 value assessment on imported auto parts were being made on imported prices but now FBR placed all these goods in Third Schedule of Sales Tax Act 1990 and imposed 17 percent sales tax.

Sources told that due to this budgetary decision a dispute is being witnessed between customs department and importers of auto parts, food items and other goods Hundreds of consignments are already struck up at ports while on the other hand some importers are considering to re-export these consignments as they are unable to bear these illegal taxes. They are of the view that due to excess prices of goods people will avoid to buy these goods.

It is pertinent to mention here that government decided to label retail prices on all imported goods before their arrival in Pakistan and this is the basic reason that importers are feeling uncomfortable and they refused to pay sales tax on retail prices.

Containers loaded with goods items, home appliances, auto parts, and food items are stuck up at ports. Commercial importers are of the view that how can one access prices of goods already reached at ports. They said that duty, transportation, commission and other things added in retail prices so assessing sales tax on retail prices is completely illegal.