Latest news with #SalesTaxAct1990
Business Recorder
3 days ago
- Automotive
- Business Recorder
FBR may impose 18% sales tax on locally-manufactured cars
ISLAMABAD: The government is likely to impose standard rate of 18 percent sales tax on locally manufactured or assembled motorcars having engine capacity 850cc in budget (25-26). In this connection, the Federal Board of Revenue (FBR) is reviewing the budget proposal to amend the Eighth Schedule of the Sales Tax Act 1990. Presently, 12.5 percent sales tax is applicable on locally manufactured or assembled motorcars of cylinder capacity up to 850cc. In case FBR's proposal is approved, the FBR will delete entry number 72 of the Eighth Schedule of the Sales Tax Act 1990. FBR may allow import of 5-year-old used vehicles It is a revenue generation measure for 2025-26 as the FBR is reviewing all sales tax exemptions and lower rates to bring them at part with the standard rate of sales tax from 2025-26, officials added. The goods specified in the Eighth schedule shall be charged to tax at such rates and subject to such conditions and limitations as specified therein, Sales Tax Act 1990 added. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Automotive
- Business Recorder
FBR may impose 18pc ST on locally-manufactured cars
ISLAMABAD: The government is likely to impose standard rate of 18 percent sales tax on locally manufactured or assembled motorcars having engine capacity 850cc in budget (25-26). In this connection, the Federal Board of Revenue (FBR) is reviewing the budget proposal to amend the Eighth Schedule of the Sales Tax Act 1990. Presently, 12.5 percent sales tax is applicable on locally manufactured or assembled motorcars of cylinder capacity up to 850cc. In case FBR's proposal is approved, the FBR will delete entry number 72 of the Eighth Schedule of the Sales Tax Act 1990. FBR may allow import of 5-year-old used vehicles It is a revenue generation measure for 2025-26 as the FBR is reviewing all sales tax exemptions and lower rates to bring them at part with the standard rate of sales tax from 2025-26, officials added. The goods specified in the Eighth schedule shall be charged to tax at such rates and subject to such conditions and limitations as specified therein, Sales Tax Act 1990 added. Copyright Business Recorder, 2025
Business Recorder
29-05-2025
- Business
- Business Recorder
FBR suspends senior tax auditor
ISLAMABAD: On complaints of harassment, the Federal Board of Revenue has suspended a Senior Auditor (BS-17) who was posted under Section 40B of the Sales Tax Act 1990 at the premises of a feed mill to monitor the supply of taxable goods. As per the FBR notification issued under Rule 5(1) of the Civil Servants (Efficiency and Discipline) Rules, 2020, the Senior Auditor of the Regional Tax Office, Multan, has been suspended for a period of 120 days or until further orders, whichever is earlier. When contacted for comments, Shahid Jami, tax advisor of the feed manufacturers, lauded the prompt action by the chairman FBR, who has assured the industry representative that no instance of any harassment reported to the FBR will be tolerated in the future. FBR begins action against companies However, Jami urged the FBR that staff posted at the factories be provided logistic support and the requisite facilities so that posting there for 30 days or more is not burdensome for the compliant taxpayers. He further urged that where monitoring of taxable supplies matches with the declared version and there is a progressive trend of voluntary compliance, such measures be avoided in future for at least two years or until there is some definite information about underreporting, he added. Copyright Business Recorder, 2025
Business Recorder
29-05-2025
- Business
- Business Recorder
Packaged milk and infant milks: Experts, stakeholders for reversing 18pc ST
ISLAMABAD: The experts and stakeholders from government, industry, and research institutions on Tuesday called for reversing 18 percent sales tax on packaged milk and infant milks in budget (2025-26). The pre-budget seminar has concluded for immediate reforms in the taxation regime affecting Pakistan's dairy industry to promote formalization, nutrition and growth. The Sustainable Development Policy Institute (SDPI) organized a focused policy dialogue titled 'Enabling Dairy Sector Transformation through Smart Taxation'. The Federal Board of Revenue (FBR) is finalizing proposals on dairy sector. Through the Finance Act 2024 the government withdrew zero-rating (Serial no.12(xvii) and 17 of the Fifth Schedule of the Sales Tax Act 1990) and imposed 18% GST on locally produced infant formula, baby food and fortified child nutrition products. Before that the locally produced preparations suitable for infants were eligible for zero-rating if the cost was within a threshold defined by the government. The FBR is reviewing this budget proposal to restore zero-rating on infant milks. The session, moderated by Zainab Naeem and organized as part of the Sustainable Development Policy Institute's (SDPI) pre-budget consultation series, aimed to finalize a joint statement and action plan to formalize the largely informal dairy sector through rational tax policies. In his opening remarks, Dr. Abid Qaiyum Suleri, Executive Director of SDPI, highlighted that despite contributing significantly to economic activity, over 90% of Pakistan's dairy sector remains undocumented and untaxed. 'Documentation of the economy is crucial not just for fiscal stability but also for tackling malnutrition and ensuring food safety,' said Dr. Suleri. He emphasized that the current tax policy – particularly the 18% GST on packaged milk – disincentivizes the formal sector and undermines both public health and economic development. Dr. Umar Farooq, Research Associate at SDPI, presented key findings from a policy brief. He revealed that the sales tax hike led to a 20% drop in packaged milk sales and closure of over 500 formal milk processing units, redirecting Rs1.3 trillion in revenue to the informal sector. 'This is a fiscal miscalculation. Globally, milk is taxed at an average of just 6%. Pakistan's 18% GST on packaged milk is a policy outlier that compromises health, nutrition, and livelihoods,' he stated. Representing the private sector, Muhammad Nasir of Friesland Campina Engro Pakistan stressed the sector's socio-economic importance, especially in rural areas. 'Dairy acts as a social safety net, yet our productivity remains among the world's lowest,' he said. Nasir also flagged Pakistan's alarming 40% stunting rate and warned that increased taxation on safe milk could worsen national nutrition indicators. Aatekah Mir from Nestlé Pakistan explained that the sales tax freeze has halted investment in milk conversion infrastructure. 'This tax was criticized across political lines,' she noted, adding that Nestlé and others are fully aligned with the SDPI's policy recommendations. Dr. Shehzad Amin, CEO of the Pakistan Dairy Association, called for a rational and uniform tax regime. 'No country taxes milk at 18% – the highest global rate is 9%. Safe milk is not a luxury, it's a right,' he asserted. He warned that shifting consumption from packaged to loose milk due to pricing pressures could severely impact public health and contribute to a stunted generation in the next five years. Dr Muhammad Anjum Iqbal, Animal Nutritionist at the Ministry of National Food Security and Research urged the government to incentivize quality milk production, highlighting the need for improving animal health, diet, and environment. During the questions and answers session, the experts emphasized the importance of pasteurization, certification, and infrastructure. Muhammad Nasir from Engro Pakistan reiterated that only registered and tested products were certified, and that modern safety protocols like those in the Netherlands were needed to combat zoonotic disease risks. Dr Shehzad Amin pointed out that 96% of milk samples from the informal sector are adulterated, compared to the formal sector's strict testing standards. 'Bringing the informal sector into the tax net could improve both revenue and milk quality,' he said. In conclusion, stakeholders unanimously called for immediate reduction of GST on packaged milk to 5%, recognition of milk as a nutrition-sensitive commodity, alignment of fiscal policies with health and nutrition goals, and promotion and protection of the formal dairy sector through public awareness and infrastructure development. Copyright Business Recorder, 2025
Business Recorder
12-05-2025
- Business
- Business Recorder
FBR deputes officers at 21 beverages cos
ISLAMABAD: The Federal Board of Revenue has deputed over 50 Inland Revenue officers at 21 beverage manufacturing companies for monitoring of production and sales of beverages cleared from the factories. In this regard, the FBR has issued instructions to the Chief Commissioner Inland Revenue, Large Taxpayers Office Lahore regarding monitoring of Beverages manufacturing units under section 40B of the Sales Tax Act 1990 and section 45(2) of the Federal Excise Act 2005. Under the said section of the Federal Excise Act, the Board may post officer of Inland Revenue to the premises of registered person to monitor production, removal or sale of goods and the stock position or the maintenance of records. Beverages, cotton bales: FBR decides to install production line counter system The FBR, in exercise of powers conferred under section 40B of the Sales Tax Act 1990 and section 45(2) of Federal Excise Act, 2005, is pleased to post the following officers/officials of Inland Revenue at the business premises of beverage manufacturing units mentioned against their names to monitor production, sales and stock position. A report on the outcome of the exercise may be furnished to the Board after completion of the exercise. The officers/officials are posted till June 2, 2025, the FBR's instructions added. Copyright Business Recorder, 2025
