FBR Slaps 25% Sales Tax on Imported Luxury Items

The Federal Board of Revenue (FBR) has slapped a 25 percent sales tax on the import and local supply of a wide range of luxury goods covering aerated water/juices, confectionary items, crockery/footwear, furniture, home appliances, jewelry, cosmetics, cigarettes, vehicles in Completely Built Up (CBU) condition and locally manufactured/assembled vehicles having engine capacity of 1400cc and above.

The FBR has imposed a 25 percent sales tax on luxury goods from March 8, 2023, under the S.R.O. 297(I)/2023 issued on Wednesday.

The FBR has imposed a 25 percent sales tax on the import and local supply of

• Aerated water and juices
• Confectionary
• Vehicles in CBU conditions
• Sanitary and bathroom wares
• Carpets (excluding those from Afghanistan)
• Chandeliers and lighting devices or equipment
• Chocolates
• Cigarettes, cigars and e-cigarettes
• Corn flakes and other ready-to-use cereals
• Cosmetics and shaving items
• Tissue papers
• Crockery
• Kitchenware and tableware and household articles
• Decorations or ornamental articles
• Dog and cat food only
• Doors and window frames
• Fish
• Footwear
• Fruits and dry fruits (excluding those imported through land routes or barter mechanisms)
• Furniture
• Home appliances CBU
• Ice cream
• Jams
• Jellies
• Preserved fruits and fruit and vegetable juices
• Leather jackets and apparel
• Mattress and sleeping bags
• Fresh, chilled, frozen, preserved, or processed meat
• Musical instruments
• Pasta
• Arms and ammunition excluding defense stores
• Shampoos
• Sunglasses
• Tomato ketchup and sauces
• A ship designed or adapted for use for recreation or pleasure or private use
• An aircraft designed or adapted for use for recreation or pleasure or private use
• Articles of jewelry (both precious metals and imitation)
• Wristwatches

The local supply of the following items would be subjected to the 25 percent sales tax:

• Locally manufactured or assembled SUVs and CUVs;
• Locally manufactured or assembled vehicles having engine capacity of 1400cc and above
• Locally manufactured or assembled double cabin (4×4) pick-up vehicles.