ISLAMABAD
With the approval of Finance Act 2014, the Federal Board of Revenue (FBR) on Thursday issued the notification of imposing 5 per cent regulatory duty on 282 imported luxury goods including fruits, vegetables, cosmetics, electronics and other commodities.
The FBR has issued a notification regarding imposition of regulatory duty on 282 imported luxury goods as announced in the budget 2014-2015. The FBR has issued the notification a day after President Mamnoon Hussain signed the Finance Bill, which was approved by the National Assembly on June 21, 2014.
The notification revealed government has imposed five per cent regulatory duty on the imported fruits including guavas, mangoes, oranges, kinnow (fresh), lemons, watermelons, apples, pears, apricots, peaches, strawberries, pomegranates, strawberries and cherries. Similarly, the government has also imposed regulatory duty on vegetables like cucumbers, tomatoes and potatoes.
Meanwhile, the government has also imposed five percent regulatory duty on the cosmetic goods. The imported cosmetic commodities included perfumes, lip make up preparations, eye make up preparations, nail polish, face powder, talcum powder, face and skin creams and lotions, creams for hair, dyes for hair, tooth paste, pre shave, shaving or after shave preparations.
Similarly, the government also imposed duty on the imported electronic goods like cooking ranges, ceiling fan, pedestal fan, table fan, exhaust fan, freezers, water dispenser, fully automatic machines, food grinders, fruit mixers, fruit or vegetable juice extractors, hair dryers, microwave ovens, electric oven, electric roasters/grillers, coffee or tea makers, toasters, pocketsize radio cassette players, wooden cabinets, wooden beds, electric table, desk, bedside or floor standing lamps.
Meanwhile, the notification also revealed that government also imposed regulatory duty on other items including yogurt, butter, cheese, pineapples, natural honey, white chocolate, chewing gum, corn flakes, sweet biscuits, rusks, toasted bread and similar toasted products, pickles, cucumbers and gherkins, tomatoes, potatoes, tomato ketchup and other tomato sauces, mustard flour and meal and prepared mustard, ice cream, mineral waters, dog or cat food, put up for retail sale, marble and granite.
Though, the FBR normally enforces the taxation measures introduced through Finance Bill from the start of new financial year, i.e. from July 1 every year; however sources in FBR told The Nation that the specified clauses of the Finance Act 2014 shall have effect from the next day of assent to the Finance Act by the President. At the same time, changes made in the customs duty on the import of items through amendments in relevant Schedules of the Customs Act would be effective from the next day of signing of the Finance Bill by the President.
Sources further informed that additional revenue collection through new taxation measures in the remaining days of June 2014 would be made part of the monthly tax collection of the last month of the current fiscal year. The levy of regulatory duty on luxury goods would generate estimated amount of Rs 500 million in the next financial year 2014-15.
Meanwhile, the FBR has also issued some other notifications enforcing taxation measures introduced in the budget 2014-2015.
According to the notification S.R.O. 562 (I)/2014, the FBR has changed the income tax rates for automotive vehicles of Asian makes meant for transport of person, as new rate would be $4800 against $4400 for the up to 800CC vehicles. Meanwhile, new rate for vehicles for up to 801cc to 1000cc would be $6000 against $5500. From 1001cc to 1300CC vehicles, the new tax rate would be $12000 against $11000. From 1301CC to 1500CC, the new tax rate would be $16900 against $15400. From 1501CC to 1600CC vehicles, new rates would be $20,500 against $18,7000. From 1601CC to 1800 CC (excluding jeeps) new rate would be $25400.