ISLAMABAD: The Federal Board of Revenue (FBR) has issued the updated Sales Tax Act, 1990 and Federal Excise Act up to February 23, 2023, to incorporate amendments made in the sales tax law through the Finance (Supplementary) Bill, 2023.
The FBR, on Tuesday, issued the amended Sales Tax Act, 1990 and the Federal Excise Act up to February 23, 2023.
The review of the updated Act revealed that the FBR has replaced 17 percent sales tax with 18 percent.
The updated Act said that 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.
FBR imposes sales tax on import of printed materials
The Act has specified 18 percent sales tax on the import and supply of potassium chlorate along with Rs967per kilogram.
The 18 percent sales tax would be applicable on the import of mobile phones exceeding US$ 200 but not exceeding US$ 350. The 18 percent sales tax would be applicable on the import of mobile phones exceeding US$350 but not exceeding US$500. Mobile phones exceeding the value of US$500 would be subjected to the 25 percent sales tax.
As per the revised Federal Excise Act, a 10 percent excise duty would be applicable on sugary fruit juices, syrups and squashes, waters whether or not containing added sugar or artificial sweeteners excluding mineral and aerated waters.
Under the amended Federal Excise Act, locally-produced cigarettes if their on-pack printed retail price exceeds Rs9,000 per 1,000 cigarettes, the rate of FED would be Rs16,500 per 1,000 cigarettes.
Locally-produced cigarettes if their on-pack printed retail price does not exceed Rs9,000 per 1,000 cigarettes, the rate of duty would be Rs5,050 per 1,000 cigarettes.
Copyright Business Recorder, 2023
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