Withholding tax on the import of edible oil made ‘Minimum tax’

Share your love
Withholding tax on the import of edible oil

The withholding tax collected on the import of edible oil, packaging material, paper/paper board, and plastics by the industrial undertakings/commercial importers have been made minimum tax from July 1, 2022.

Circular No. 15 of 2022, to provide information on withholding tax for imports for industrial enterprises. Some changes were made to the Finance Act 2022 regarding WHT on imports as per section 148 of Income Tax Ordinance 2001.

First, an industrial undertaking can adjust the withholding tax on imports at 1 percent or 2 percent for goods falling under Part I or II of the Twelfth Supplement to the Ordinance. This applies only if the goods were imported for their own use. Many circumstances may lead to goods imported for personal use by industrial enterprises to fall under Part III. This tax of 5.5 percent is collected at the import stage.

The result was that the minimum tax, which is a 5.5 percent tax on imports of goods by industrial undertakings for their own use, became mandatory. To streamline the process, tax collected from an industrial 13 undertaking on imports of all goods for its own use has been adjusted.

Second, the tax on edible oil, packaging material, and paperboard imported by industrial enterprises for their own use or commercial importers has been reduced to the minimum tax.

Thirdly, the rate of the withholding tax on import of goods that fall in Part II of the Twelfth Schedule of the Ordinance was increased from 2 percent to 3 percent for commercial importers. This will be the minimum tax.

Fourth, some goods were moved from Part II to the Twelfth Schedule. Part I includes goods that are subject to tax at 1 percent regardless of whether they were imported by an industrial undertaking or commercial importer.

Share your love

Leave a Reply

Your email address will not be published. Required fields are marked *

Ads Blocker Image Powered by Code Help Pro

Ads Blocker Detected!!!

We have detected that you are using extensions to block ads. Please support us by disabling these ads blocker.

Powered By
Best Wordpress Adblock Detecting Plugin | CHP Adblock