The federal government has decided to provide a major sales tax relief to the pharmaceutical sector through the Presidential Ordinance to be issued after the Executive Board meeting of the International Monetary Fund (IMF), to be held on August 29.
A senior official from the Ministry of Finance told Propakistani that the government will restore the pre-budget (2022-23) status of the pharmaceutical sector under the coming Ordinance. Before budget (2022-23), sales tax exemption was available to the pharmaceutical sector which would now be replaced with zero percent sales tax.
Ministry of Finance has given approval to the proposal to allow sales tax zero rating on the import and local supplies of pharmaceutical raw materials. There would be zero percent sales tax on the import and local supplies of the pharmaceutical products.
The reduced rate of the 1 percent sales tax imposed on pharmaceutical raw materials and active pharma ingredients would be withdrawn through the New Ordinance, the official stated.