GOVERNMENT OF PAKISTAN
REVENUE
DIVISION
CENTRAL BOARD OF REVENUE
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C.NO.1(10)WHT/2004 Islamabad, July 1, 2004
CIRCULAR NO. 08 OF 2004
(Income Tax)
Subject:
WITHHOLDING
TAX ON IMPORT OF CERTAIN SPECIFIED ITEMS/GOODS
Under
section 148 of the Income Tax Ordinance, 2001, tax on imports was collectable @
6% of the import value as increased by customs duty and sales tax, if any,
payable thereon. In the case of goods
imported for commercial sales, the tax so collected constituted final discharge
of tax liability in respect of income arising form such imports.
2. A
new clause, (13B) has been inserted in Part-II of the Second Schedule to the
Income Tax Ordinance, 2001, through Finance Act, 2004 whereby withholding tax
shall be collected at the reduced rate of 2%, with effect from July 1st
2004, in respect of items falling under HS Codes 801.1100, 801.3200, 802.1200, 802.9010, 902.4010, 902.4090, 904.1110, 907.0000, 908.1000,
3702.3100, 3705.2000, 3707.9000, 4011.2090, 50.04, 50.05, 50.06, 6301.1000,
8204.0000, 8301.1000, 8511.1000, 8525.4000, 8529.9010 and 9004.1000 of First
Schedule to the Customs Act, 1969 (IV of 1969).
3. Tax
collected at the reduced rate of 2% shall remain final discharge of tax
liability.
Muhammad Ashfaq Ahmed
Secretary (WHT)
