The Federal Board of Revenue (FBR) has allowed sales tax zero-rating facility on the export of PVC and PMC materials on exports to Afghanistan or to Central Asian Republics (CARs) through Afghanistan. Explaining this decision of the Finance Act 2019, the FBR has issued a sales tax circular. The FBR explained that the SRO 190(I)/2002, issued in exercise of powers under clause (iii) of the first proviso to section 4 of the Sales Tax Act, 1990, provides that zero-rating shall not apply to exports of goods specified in SRO as made by air or via land route to Afghanistan and through Afghanistan to Central Asian Republics (CARs).

The 2002-notification has now been amended vide SRO 691 (I)/2019 dated 29.06.2019 to exclude PVC and PMC materials from purview of SRO 190(I)/2002, meaning thereby that zero-rating on export of these items shall be available on exports to Afghanistan or to CARs through Afghanistan, FBR added.

Copyright Business Recorder, 2015