FBR slashes sales tax on imported textile, leather

The Federal Board of Revenue (FBR) has notified reduction in sales tax rate on import of finished goods of textile and leather.

A notification SRO1070 was issued on October 23 by amending the SRO1125 of 2011. “In exercise of the powers conferred by sub-section (1), clause (b) of sub-section (2) and sub-section (6) of section 3 and clauses (c) and (d) of section 4 read with clause (b) of sub-section (1) of section 8 and section 71 of the Sales Tax Act, 1990, the board, with the approval of the Federal Minister-in-charge, is pleased to direct that the following further amendments shall be made in its Notification No. S.R.O. 1125(1)/2011, dated the December 31, 2011,” stated FBR in its notification.

As per the decision, the sales tax was reduced to 6 percent from standard 17 percent on import of these finished products for consumption in domestic market.

Here is the notification: