The Federal Board of Revenue (FBR) has restored exemption on income derived by Kuwait Foreign Trading Contracting and Investment Company in Pakistan as per sovereign agreement.
It also includes (income from) Kuwait Investment Authority being dividend of the Pak-Kuwait Investment Company.
In a Statutory Regulatory Order (SRO) issued on Monday, the FBR also notified that sales Tax exemption to the local supply of single cylinder agriculture diesel engines of 3 to 36 HP, which was withdrawn under the Finance Supplementary Act, 2022 has been restored as well.
In addition, the previously withdrawn exemption on allowance and perquisite paid or allowed outside Pakistan by the Government of Pakistan to its citizen for services rendered outside Pakistan has also been resumed with effect from 1 July 2022.
The Board has also granted sales tax exemption under the subsidy provided by the Federal or Provincial Government on natural gas to consumers, including RLNG.
On the other hand, the Fixed Tax Scheme has been introduced for retailers except for tier-I retailers on commercial electricity connection with effect from 1 July 2022 and the tax regime prior to the Finance Act 2022 has been restored.
Federal Government has been empowered to make any future scheme and determine its modalities including tax rate or amount and the date when it will be implemented for retailers to collect tax on commercial connections. Till the new scheme is announced by the Federal Government, the previous regime prior to Finance Act, of 2022 will remain in force.