Manufacture of dextrose & saline infusion sets: sales tax exempted

Tag : engineering raw materials
The Federal Board of Revenue (FBR) hasexempted sales tax on the import of raw materials used in themanufacture of "dextrose and saline infusion sets" falling underPakistan Customs Tariff Heading (9018.3920). The board has amendedSRO.539(I)/2008 through a notification issued on Friday.

According to the notification, sales tax exemption would beavailable on the import of Ethylene Oxide Gas PCT Sub-heading2910.1000); THF solution (PCT 2932.1100); Polystyrene (PCT3903.1920); Acrylonitrile Butadiene Styrene (ABS) copolymers (PCT3903.3000); PVC Medical Grade (PCT 3904.2200); medical foil (PCT3920.1000); Latex Tube (PCT 4006.9000); medical paper (PCT4802.5400) and needle (PCT heading 9018.3200).

This is subject to the condition that a sales tax registeredimporter-cum-manufacturer having suitable in-house facilities shallsubmit a complete list in the prescribed format of his annualrequirement of permissible items (inputs) he intends to import forthe manufacture of goods to the concerned collector havingjurisdiction or to any other organisation or person as authorisedby the FBR.

The importer-cum-manufacturer shall file a request containing adeclaration of input or, as the case may be, input and outputratios to the collector or the authorised person. The collector mayaccept the declaration of input output ratio as declared by theapplicant and determine the annual requirement of inputs.

In case the collector or authorised person is not satisfied withdeclared input output ratios of the items to be manufacturedbecause of their being prima facie not in accordance with theprevalent average of the relevant industry or for any other reason,he may, after allowing a reasonable provisional quantity, make areference to the Engineering Development Board or IOCO or to anyother recognised authority for final determination thereof.

The collector or authorised person shall then determine the finalannual quantitative entitlement of inputs and the applicant shallproceed to consume imported inputs in accordance with the inputoutput ratios and quantities so determined and the clearance ofinputs shall be allowed through one port or dry port.