SRO 699(I)/2002

GOVERNMENT OF PAKISTAN MINISTRY OF FINANCE, ECONOMIC AFFAIRS, STATISTICS AND REVENUE (REVENUE DIVISION) * * * Islamabad, the 12th 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……………… 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 upto 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 sale 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 Ahmed) Additional Secretary