NBR not to give duty benefits for import of 20 types of goods
The National Board of Revenue has issued an order listing the names of 20 types of consumable and locally available goods for import on which power plants will not get duty benefits.
The NBR’s customs wing on Thursday issued a statutory regulatory order streamlining the duty benefits that the public and private power plants got.
It offered duty exemption to power plants on permanent import of plants and equipment and temporary import of erection materials.
The NBR also identified a list of 20 products which will not enjoy the duty exemption as these items, including steel products, cement, stone, pre-fabricated building, electric light-fittings, transmission towers, cable distribution transformers, paint and varnish, household goods, chemicals, lubricating oils, transformer oils, office equipment and furniture, air conditioners below 2 lakh BTU, dredgers, anchor boats and motor vehicles, are either locally available or consumable.
Officials said that both public and private power plants had been enjoying exemptions on payment of duties and taxes on the import of the items under two separate SROs issued in 1997 and 2000 and some explanations of the revenue board issued from time to time.
But there was no negative list of products in place which was causing complexities for both sides.
Some companies were claiming duty benefits for items consumable and locally available goods.
The NBR issued the SRO, scrapping the previous SROs, with a negative list containing the names of products for which the benefit will not be applicable to remove the complexities, they said.
According to the SRO, power plants will have to import permanently importable plants and equipment before the start of commercial generation of power.
The power plants will be allowed to import spare parts worth a maximum of 10 per cent of the total value of the plants and equipment for a period of up to 12 years from the date of commercial production commencement.
In case of temporarily import of erection materials, machinery and spare parts, the companies will have to import the items before the beginning of commercial production and have to send back the items within six month of starting commercial production, the SRO said. (Source: New Age)