Tax input adjustments for 8 sectors allowed

ISLAMABAD: In a bid to facilitate manufacturers of eight sectors, the Federal Board of Revenue (FBR) on Thursday issued a list of harmonised system code products that qualify for tax input adjustments.

The decision, notified through a sales tax circular, underscores the necessity of a streamlined procedure for permitting input tax adjustments and provides a comprehensive overview of the raw materials employed by industries.

The HS code list covers sectors — weaving, dyeing and printing, steel melters/re-rollers, oil and ghee, chemicals, cement, lead and batteries, and paper and paper board. A positive list of input, goods and services related to each sector has been prepared in consultation with all stakeholders.

This move by the FBR is designed to bolster transparency and efficiency in the tax system by aligning input tax adjustments with the raw materials indispensable to various manufacturing processes.

The FBR has set a Dec 28 deadline for stakeholders to submit their suggestions concerning the addition or removal of any items presently listed.