The govt. has maintained that annual turnover threshold of cottage industry has been reduced from PKR 10Mn to PKR 3Mn but three new criteria have been added to the sales tax section dealing with industry. To qualify as cottage Industry, all four conditions will have to be fulfilled. Exemption to cottage industry has been modified as; it does not have an industrial gas or electricity connection; it is located in a residential area; it does not have a total labor force of more than ten workers; and annual turnover from all supplies does not exceed PKR 3Mn. Additionally supplies made to cottage industry are exempted from sales tax. Secretary Finance Naveed Kamran has recently informed Senate Standing Committee on Finance that various incentives in customs import duties have been provided to manufacturers and SMEs and CD on 1,639 Industrial raw materials has been reduced to 0%. Additionally, other raw materials and intermediary goods are subject to the lowest tariff slabs which are 3% and 11% respectively.
17/12/19