The federal government, abiding by its commitment, has restored zero rating facility on raw materials for stationery, dairy products and bicycles, resulting in a waiver of 17% sales tax on these items.
According to a notification issued on Thursday by Federal Board of Revenue (FBR), the import and local supply of raw materials will be charged at zero rates, subject to a number of conditions.
On June 12, the FBR had taken away the zero-rating facility from the writing instruments manufacturing industry, bicycles and dairy products, while bringing these sectors to ‘exempted sectors’.
However, while wrapping up his budget speech, Finance Minister Ishaq Dar had announced the restoration of the facility for these sectors.
Despite the announcement, FBR has issued relevant notification to this effect after a lapse of three weeks.