There has been an amendment made in the 12th schedule of the Sales tax act 1990. According to this amendment, an additional value addition tax at the rate of 3% would be levied on the import of goods other than inputs or raw materials and including import of such goods which are subject to customs duty at the rate of 16% or above.
According to this ordinance, the effect of the amendment in the twelfth schedule (3% value addition tax) is not applicable on the Plant, machinery and equipment being imported by a manufacturer for in house installation or house, falling in chapters 84 and 85 of the first schedule to the Customs Act 1969 (IV of 1960).
The refund of a 3% value addition tax would not be barred if paid on goods used in making zero-rated supplies.
Reference:
ICAP Newsletter- March 2020