BAFL 46.54 Decreased By ▼ -0.21 (-0.45%)
BIPL 21.04 Increased By ▲ 0.68 (3.34%)
BOP 5.54 Increased By ▲ 0.23 (4.33%)
CNERGY 4.85 No Change ▼ 0.00 (0%)
DFML 18.82 Increased By ▲ 1.67 (9.74%)
DGKC 80.50 Increased By ▲ 1.65 (2.09%)
FABL 30.95 Increased By ▲ 1.71 (5.85%)
FCCL 20.49 Increased By ▲ 0.14 (0.69%)
FFL 9.59 Decreased By ▼ -0.07 (-0.72%)
GGL 13.94 Increased By ▲ 1.19 (9.33%)
HBL 116.96 Increased By ▲ 2.68 (2.35%)
HUBC 123.62 Decreased By ▼ -0.18 (-0.15%)
HUMNL 7.98 Increased By ▲ 0.40 (5.28%)
KEL 3.52 Increased By ▲ 0.19 (5.71%)
LOTCHEM 28.59 Increased By ▲ 0.34 (1.2%)
MLCF 42.10 Increased By ▲ 0.10 (0.24%)
OGDC 123.10 Increased By ▲ 8.99 (7.88%)
PAEL 18.82 Decreased By ▼ -0.03 (-0.16%)
PIBTL 5.71 Increased By ▲ 0.11 (1.96%)
PIOC 114.50 Increased By ▲ 0.60 (0.53%)
PPL 110.98 Increased By ▲ 11.52 (11.58%)
PRL 27.52 Increased By ▲ 0.76 (2.84%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
SNGP 70.09 Increased By ▲ 2.69 (3.99%)
SSGC 13.18 Increased By ▲ 0.58 (4.6%)
TELE 8.81 Increased By ▲ 0.26 (3.04%)
TPLP 13.65 Increased By ▲ 0.35 (2.63%)
TRG 91.94 Increased By ▲ 6.25 (7.29%)
UNITY 26.81 Increased By ▲ 0.34 (1.28%)
WTL 1.57 Decreased By ▼ -0.01 (-0.63%)
BR100 6,544 Increased By 101.5 (1.58%)
BR30 23,210 Increased By 429.3 (1.88%)
KSE100 63,918 Increased By 961.7 (1.53%)
KSE30 21,352 Increased By 348.1 (1.66%)

ISLAMABAD: The Federal Board of Revenue (FBR) will charge 17 percent sales tax on the food, food stuff, and sweetmeats supplied by restaurants, bakeries, caterers, and sweetmeat shops from January 16.

The FBR has issued a circular No 07 of 2022 (Sales Tax) on the explanation of important amendment introduced in the Sales Tax Act, 1990, through Finance (Supplementary) Act, 2022.

Up to January 15, the food, food stuff, and sweetmeat supplied by restaurants, bakeries, caterers, and sweetmeat shops was taxable @ 7.5 percent under serial No64 of Eighth Schedule of Sales Tax Act, 1990, with the condition that no input tax shall be adjusted.

POS system: 100pc integration of major bakeries achieved

Through the Finance (Supplementary) Act, 2022 serial No 64 of eight schedule of Sales Tax Act, 1990 has been omitted; now these products shall be chargeable to tax @ 17 percent under the VAT regime.

It is further explained that services mentioned under serial No1 of the Schedule to the ICT Service Ordinance, 2001 by hotels, motels, guest houses, marriage halls, and lawns (by whatever name called) including ‘pandal’ and ‘shamina’ services, clubs including race clubs, and caterers shall continue to be chargeable to tax @ 16 percent.

The taxpayers falling in the above category at para-1 are required to charge Sales tax @ 17 percent on supply with effect from January 16, 2022, the FBR added.

Copyright Business Recorder, 2022

Comments

Comments are closed.

Shahid Manzoor Jan 22, 2022 06:36pm
But we have been paying GST at restaurants since long
thumb_up Recommended (0)
Shah Jan 25, 2022 02:42am
Great initiative from FBR ❤️
thumb_up Recommended (0)
Shah Jan 25, 2022 02:42am
Great initiative from FBR ❤️
thumb_up Recommended (0)
Raghib Ahsan Sep 18, 2023 10:48am
How much tax is on food items in PC and Avari Hotel restaurants in Lahore
thumb_up Recommended (0)

Restaurants, bakeries, caterers: FBR to charge 17pc sales tax

Three projects: ADB approves $659m in financing

New FAB ED: govt initiates appointment process

FWBL sell-off: Minister briefed about status of accounts

Digitising budget process: Shamshad chairs IMF mission meeting

‘Illegal’ LCs, forex market speculation: MoF set to share list of banks with SIFC today

Loss-making Discos: FD opposes PD’s proposal

Power sector: Nepra backs transition from Libor to ‘SOFR’

‘Delayed’ CASA-1000 project: World Bank reluctant to arrange funds

CPEC 10th anniversary: there exists strong commitment to accelerate pace of ongoing projects

Customs values of various goods changed