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The National Board of Revenue (NBR) waived 7.5-per cent value-added tax (VAT) on local procurement of aluminium scraps and wastes by utensil-manufacturing industries.
The NBR's VAT wing issued a gazette making the VAT exemption effective from Monday (June 26).
The NBR also reduced VAT on ballpoint pen to 5.0 per cent from 15 per cent, as proposed in the budget, through issuing another gazette, effective from Monday.
The VAT wing also reinstated 15 per cent VAT and 5.0 per cent advance tax on import of petroleum products, which came into effect on the same day. It happened, as the Customs wing backtracked from its move to impose specific duty on the products and reinstated customs duty and tariff value on their import.
Officials said 7.5 per cent VAT on local procurement of wastes and scrap was in place as per the VAT and Supplementary Duty (SD) Act 2012. But it was difficult to collect the VAT, as such products are collected informally.
The government waived the VAT on procurement of their raw materials, considering large-scale use of aluminium utensils and for keeping their prices affordable, they added.
In another statutory regulatory order (SRO), the NBR's Customs wing withdrew concessionary tax benefit on import of parts of light-emitting diode (LED) lamps, and offered tax benefit for local switch-socket manufacturing industries.