The Federal Board of Revenue (FBR) has issued an updated Sales Tax Act, 1990 and Federal Excise Act up to February 23, 2023, to incorporate amendments made in the sales tax law through Finance (Supplementary) Bill, 2023.
The review of the updated Act revealed that the FBR has replaced 17 percent sales tax with 18 percent. The updated Act said that the federal government may, subject to such conditions and restrictions as it may impose, by notification in the official Gazette, declare that the tax on goods specified in the Third Schedule shall be collected and paid at such higher rate or rates on the retail price thereof, as may be specified in the said notification.
The 18 percent sales tax would be applicable on the import of mobile phones exceeding $200 but not exceeding $350. The 18 percent sales tax would also be applicable on the import of mobile phones exceeding $350 but not exceeding $500. Mobile phones exceeding the value of $500 would be subjected to a 25 percent sales tax.
As per the revised Federal Excise Act, a 10 percent excise duty would be applicable on sugary fruit juices, syrups, and squashes, waters whether or not containing added sugar or artificial sweeteners excluding mineral and aerated waters.
