Refund of ST on cement export not to be allowed, Pakistan
The Central Board of Revenue (CBR) disallowed on Thursday the refund and adjustment of sales tax and rebate of excise duty on the export of cement by land, air or sea route.
A CBR statement issued here stated that in pursuance of the decision taken by the Economic Coordination Committee of the Cabinet at its meeting held on April 14, the CBR has issued notifications SROs No 389, 390 and 391(I)/2006 dated 27.04.2006 disallowing refund and adjustment of sales tax and rebate of excise duty on the export of cement by land, air or sea route. According to the issued SRO 389(I)/2006, in exercise of the powers conferred by clause (b) of sub-section (1) of section 8 of the Sales Tax Act of 1990, read with the second proviso to section 4 thereof, the Federal Government is to direct that no input tax credit of sales tax paid on account of manufacture or import of cement falling under PCT heading 25.23, shall be allowed if the cement so manufactured or imported into Pakistan is exported out of Pakistan via land, air or sea route. Published under Cement News
