ISLAMABAD: The Federal Board of Revenue (FBR) has finalised revised sales tax schedules, ie, Sixth Schedule (Exemption list) and Fifth Schedule (zero-rated goods) of the Sales Tax Act, 1990, for the upcoming budget (2024-25).
It is learnt that the number of exempted goods mentioned in the Sixth Schedule (Exemption Schedule) and Fifth Schedule (zero-rated items) has been proposed to be reduced under Finance Bill 2024.
These items would be subjected to a standard rate of 18 percent sales tax in the budget (2024-25).
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The exemption available to diplomats and health/medical items and foreign investment including Chinese projects would remain exempt under government’s agreements.
The budget makers have reviewed the entire list of zero-rated items and sales tax-exempted items for the purpose of charging sales tax on them.
Sales tax exemption has also been proposed to be withdrawn from the local supply of many items.
Sources stated budget makers have proposed 18 percent sales tax on many items presently charged at the rate of zero percent under the Sales Tax Act 1990.
Sources added that a large number of items have been excluded from the Sixth Schedule (Exemption Schedule) and Fifth Schedule (Zero-Rated Schedule) under the proposed Finance Bill 2024.
Copyright Business Recorder, 2024
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