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Tax exemption of Rs10m on import of 10 vehicles opposed

Tax exemption of Rs10m on import of 10 vehicles opposed

LAHORE: The Law Division has opposed tax exemption worth Rs10 million for import of 10 vehicles by the Ministry of National Food Security and Research.

Officials said that the issue was taken up in a recent meeting of the Economic Coordination Committee (ECC) of the cabinet.

During discussion, the Ministry of National Food Security and Research secretary highlighted that exemption from federal excise duty (FED) was being solicited in terms of Section 13(2)(a) of the Sales Tax Act 1990 and Section 16(2) of the Federal Excise Act 2005.

A representative of the Law and Justice Division stated that tax exemption could only be allowed according to the required procedure under the relevant law. However, the instant case was prima facie and was not covered by the relevant provisions.

The ECC chairman noted that in view of the difference of opinion on the interpretation of law, necessary advice of the Law and Justice Division was required.

The Ministry of National Food Security and Research pointed out that a national emergency, to combat locust threat, was declared by the federal government through a cabinet decision on February 11, 2020.

The food security ministry approached the UN Food and Agriculture Organisation (FAO) for the issuance of End User Certificates for import of 10 soft skin 79 Series pickup 4.2 L-3, which would be used by the ministry for desert locust control operations.