ISLAMABAD: The Federal Board of Revenue (FBR), from March 8, imposed 25 percent sales tax on the import and local supply of luxury items including aircraft, ships, jewellery, cosmetics, cigarettes, vehicles in Completely Built Up (CBU) condition and locally manufactured/ assembled vehicles having engine capacity of 1400cc and above.
According to an SRO 297(I)/2023 issued late Wednesday night, the federal government has directed that the sales tax shall be charged, levied and paid at the rate of 25 percent of the value of the goods imported and their subsequent supply or the retail price, as the case may be and the sales tax shall be charged, levied and paid at the rate of 25 percent of the value of the supply of specified goods.
Through SRO 297(I)/2023, the FBR has further clarified that the provisions of this notification shall not be applicable in respect of goods specified in the Eighth Schedule to the Sales Tax Act, 1990.
The goods included in this schedule included computers, laptops, locally manufactured electric vehicles; road tractors for semi-trailers (Electric Prime Movers); electric buses; three wheeler electric rickshaw; second hand and worn clothing or footwear; cinematographic equipment and other items specified in the Eighth Schedule to the Sales Tax Act, 1990.
The FBR has imposed 25 percent sales tax on the import and local supply of aerated water and juices; confectionary; vehicles in CBU condition; sanitary and bathroom wares; carpets (excluding those from Afghanistan); chandeliers and lighting devices or equipment; chocolates; cigarettes, cigars and e-cigarettes; corn flakes and other ready-to-use cereals; cosmetics and shaving items; tissue papers; crockery, kitchenware and tableware and household articles; decorations or ornamental articles; dog and cat food only; doors and window frames; fish; footwear; fruits and dry fruits (excluding those imported through land route or barter mechanism); furniture; home appliances CBU; ice cream; jams, jellies, preserved fruits and fruit and vegetable juices; leather jackets and apparels; mattress and sleeping bags; fresh, chilled, frozen, preserved or processed meat; musical instruments; pasta; arms and ammunition excluding defence stores; shampoos; sunglasses; tomato ketchup and sauces; a ship designed or adapted for use for recreation or pleasure or private use; an aircraft designed or adapted for use for recreation or pleasure or private use; articles of jewellery (both precious metals and imitation); wristwatches; locally manufactured or assembled SUVs and CUVs; locally manufactured or assembled vehicles having engine capacity of 1400cc and above and locally manufactured or assembled double cabin (4x4) pick-up vehicles.
Copyright Business Recorder, 2023