The FBR proposes automated procedures for importer
- FBR proposed automated procedures for the facilitation of import of raw materials for industries.
- The online system will reduce processing time and remove unnecessary delays in the issuance of exemptions certificates.
- FBR reduced the retention period of a plant, machinery, and equipment brought under export facilitation schemes from 10 to five years.
The Federal Board of Revenue (FBR) has proposed an online system for the facilitation of import of raw materials for industries.
These procedures are expected to improve the system of issuance of exemption certificates. The online system is based on the automated risk-based mechanism in order to reduce processing time and eradicate unnecessary delays in the issuance of exemptions certificates.
In the new system, public and private limited companies will provide online information for processing through the system.
The income tax commissioner will issue an exemption certificate within seven and ten days for public and private limited company respectively. The exemptions to all other persons will be issued within 15 days of the filing of application through the automated system.
In case the commissioner doesn’t take action on the application within the scheduled time, the system will issue a certificate to the taxpayer, such an exemption certificate issued to all persons, except public and private limited, will be provisional.
If an assignment has been issued by the commissioner within seven days of the filing of the application, the system will not issue an automatic certificate.
The commissioner can revoke the exemption certificate automatically if it comes to the knowledge that any of the prescribed conditions have not been fulfilled.
Retention period of Machinery and Plant
The FBR has reduced the retention period of a plant, machinery, and equipment brought under export facilitation schemes from 10 to five years.
FBR allowed the export-oriented units to dispose off their machinery prior to five years after payment of duty and taxes against the different depreciated rates after three years. In case of selling or disposing of the machinery after three years and before four, the units will have to pay 75% of taxes. However, these amendments will be finalized after getting input from all stakeholders within 15 days.
In case the units dispose of the machinery after four years or before, they will have to pay 50%taxes. There are no taxes on units that either sell or dispose of machinery after five years from the date of importation.