GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE , ECONOMIC AFFAIRS,

STATISTICS AND REVENUE

(REVENUE DIVISION)

****

Islamabad, the 12^th October, 2002.

NOTIFICATION

(SALES TAX)

S.R.O. 699 (I)/2002.- In exercise of the powers conferred by section 71 of the Sales Tax Act, 1990, read with section 34A thereof, the Federal Government is pleased to direct that the following further amendments shall be made in the Ship-breaking Industry (Special Procedure) Rules, 1997, namely:-

            In the aforesaid Rules,- 

(a)     in rule 6, for sub-rule (3), the following shall be substituted, namely”-

    “(3) Subject to the maximum aggregated wastage upto seven per cent, the following shall normally be percentage or proportion of scrap and other products obtained from the breaking of oil tankers, bulkers, cargo ships, drilling ships, war ships, passenger ships and cattle carriers, namely:-

            (i)         ship plate and profiles of ½” thickness and above………..                         40%

            (ii)        ship plate and profiles of 3/8” thickness and above but below ½”…            20%

                        (iii)        second quality re-rollable scrap of short lengths…………                         15%

            (iv)        small irregular pieces and re-meltable scrap…………….                          15%

                        (v)         cast iron, pipes or cast steel ……….                                                     7.5%

            (vi)        non-ferrous metals……….                                                                     0.5%

            (vii)       stores or machinery …………….                                                            2.0%;  and

(b)       in rule 8, for sub-rule (1), the following shall be substituted, namely:-

“(1) The ship-breakers shall clear their sales tax liabilities in respect of ships weighing op to ten thousand LDT within four months and in case of ships weighing more than ten thousand LDT within eight months from the date of filing of bill of entry: 

                                    Provided that the sales tax liability shall have to be cleared by the ship-breaker either

                                    on completion of clearance of goods of the vessel or within the maximum time period

                                    allowed, whichever is earlier:

 

                                    Provided further that the sales tax liability on value addition on goods cleared during the

                                    month shall be paid alongwith the monthly return.”

[F.No.3/13-STB/99-pt.] 

(Dr. Manzoor Ahmad)

Additional Secretary