ISLAMABAD: The Federal Board of Revenue (FBR) will move a summary to the federal cabinet for imposing a higher rate of 25 percent sales tax on the import of a wide range of luxury and non-essential items.
Sources told Business Recorder here on Monday that the FBR has obtained the enabling powers of the federal government under the Finance (Supplementary) Act, 2023, to levy 25 percent sales tax on the import of luxury items.
The FBR is now fully empowered to impose 25 percent sales tax at the import stage but the approval needs to be taken from the federal cabinet in this regard.
Import of luxury items ST: FBR empowered to impose higher rate of 25pc
According to the Finance Act, 2023, the federal government may, subject to such conditions and restrictions as it may impose, by notification in the official Gazette, declare that the tax on goods specified in the Third Schedule shall be collected and paid at such higher rate or rates on the retail price thereof, as may be specified in the said notification.
Earlier, the FBR has no powers of the federal government to impose 25 percent sales tax through a statutory regulatory order (SRO).
The Finance (Supplementary) Act, 2023, has given such powers to the FBR to impose higher rates of sales tax.
Copyright Business Recorder, 2023