In this regard, the FBR has issued instructions to the Collector Model Customs Collectorate (MCC) Appraisement Karachi, here on Monday. It is learnt that the Secretary Law and Procedure Sales Tax, FBR, instead of issuing the sales tax clarification, referred the matter of application of extra tax to the customs authorities. According to the FBR, a chartered accountant firm of Karachi has sought clarification regarding classification of "Cakes and Supari" supplied by registered persons engaged in the business of manufacturing/import of confectionery items chargeable to extra tax at the rate of 2 percent under section 3(5) of the Sales Tax Act, 1990 read with Chapter XIII of Sales Tax Special Procedures Rules, 2007 and SRO 896(1)/2013 dated 4-10-2013. The contention of the applicant is that Cakes and Supari falling under PCT headings 19.05 and 0802.9010/ 0909.1000, respectively do not fall under the definition of confectionary items classifiable under PCT heading 17.04.
It is requested that the case of applicants may kindly be examined thoroughly by the PCT Classification Committee for determination of duty/tax as to whether Cakes and Supari fall under the definition/heading of confectionary items or the findings thereof may kindly be communicated to the Board at the earliest, FBR maintained. The Collectorate is further requested to directly communicate with the applicants for any inquiry/ assistance/ evidence in the matter, FBR added.