Federal Board Revenue (FBR) has proposed to impose 17% extra sale taxes on the import of LPG, mobile phones, computers, plant, machinery/equipment, and a lower rate of sales tax on the import of raw materials used in the manufacturing of medicines; it’s worth is about Rs350 Billion.
On Saturday, it was revealed that a 17 percent sales tax will be imposed on a variety of commodities at the import stage as well as domestic supply. The withdrawal of Rs350 billion in sales tax exemptions will result in the implementation of sales tax on several exempted goods at both the import and local supply stages.
The tax will have an inflationary effect, which will be promptly passed on to consumers in the form of a 17 percent rise in item prices.
The 17 percent sales tax is proposed to be imposed on the import of plant, machinery, and equipment, books, chemicals, solvent oil, household items under the baggage scheme, animals, seeds, poultry, eggs, meat, vegetables/fruit, pulses, and other items in the proposal of the Tax Laws (Fourth) Amendment Bill 2021.
The FBR will eliminate all sales tax zero-rated goods except on export and capital machinery goods and move them to the standard 17 percent sales tax rate.
The FBR has proposed to impose 17 percent sales tax on the items with dedicated use of renewable sources of energy such as solar and wind including solar PV panels; LVD induction lamps; SMD, LEDs, with or without ballast, with fittings and fixtures; wind turbines including alternators and mast; solar torches and lanterns, and related instruments.
