ISLAMABADL: The government has offered tourists and overseas Pakistanis the facility to purchase tax-free Pakistani goods at Duty Free Shops.
They would be able to buy GST-free items that are duty-free under the Customs rules, says a CBR Sales Tax General Order No 4 of 2002. The overseas Pakistanis previously enjoyed the facility only against the amount of remittances they sent back.
Now they would be able to purchase locally made goods tax-free. The facility is intended to provide incentives for the purchase of Pakistani goods to a new set of potential buyers.
The order stipulates that the DF Shops would be offering overseas Pakistanis and tourists goods authorised by sales tax collectors of their respective areas. Only such goods shall be included in the application for authorisation, which the DFS intend to sell against duty free allowance under different baggage concessions. DFS will submit indemnity bonds for ST-free sale of goods on which the manufacturer will supply goods. Value of goods will have to be mentioned both in Pakistani rupee and US dollars.
The manufacturer of goods so put up for sale would be entitled to claim input credit even against the zero-rated goods' sale. The DFS shall procure goods under order to meet their requirements for a period not exceeding three months and shall ensure that these goods do not find way to the local market.
They shall be responsible for paying GST and additional tax in case any such goods are found being sold in the local market.