In order to capture the supply chain better, sales tax zero-rating on stationery items (excluding exercise books), packaged milk, fat-filled milk, and local supplies to registered exporters has been withdrawn through the Finance Act, 2024.
The FBR on Monday explained some of the important changes introduced in the Eighth Schedule through the Finance Act, 2024, which are as follows:
Imported LPG and supplies by integrated outlet of textile and leather articles are brought in standard regime by omitting serial numbers 58 and 66 of the Tabel-1 of the schedule mentioned above.
A reduced rate of sales tax at a rate of 1 percent has been withdrawn on medicaments as are classifiable under chapter 30 of the First Schedule to the Customs Act, 1969 (IV of 1969). These medicaments are now brought under the standard regime of tax at a rate of 18 percent.
The FBR further explained that certain goods such as specified stationery items, tractors, oil cake, poultry/cattle food/various seed meals and vermicelli’s, sheer mal, etc. which were earlier exempt have now been made liable to a reduced rate of sales tax at the rate of 10 percent.
The rate of sales tax on imported laptops and computers has been increased from 5 percent to 10 percent.
Through the Finance Act,2024, for broadening of tax base and enhancing revenue, exemptions available to certain goods under Table-1 & Table-2 of the Sixth Schedule have either been withdrawn or shifted to the 8th schedule as goods liable to reduced rate.
Exemptions on edible vegetables and fruit imported from Afghanistan, Diagnostic kits or equipment, and import of cinematic machinery and equipment, have been removed. Items shifted to the 8th schedule for sales tax at a reduced rate include stationery items (other than textbooks), oil cake and other solid residues, tractors vermicelli, sheer mal, bun, rusk, poultry feed, cattle feed, sunflower seed meal, rape seed meals, and canola seed meal.
Furthermore, some fresh exemptions have been introduced in Table-1 & Table-2 of the above-mentioned Schedule detailed as under:
Supply of electricity to AJK; import of gold under entrustment scheme (SRO 760(1)/2013); import of cystagon, cysta drops and trientine capsules (for personal use only); bovine semen (PCT heading 0511.1000); import of all goods received, in the event of a natural disaster or other catastrophe, as gifts and relief consignments or any goods received as gift or donation from a foreign government or organization by the Federal or
Provincial Governments or any public sector organization subject to certain conditions; POL products; milk excluding those sold under a brand name; or supplied by corporate dairy farms; iron and steel scrap excluding supplied by manufacturer-cum-exporter of recycled copper, authorized under Export Facilitation Scheme, 2021.
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Imposing 10% tax on IMPORTED laptops will result in 20% decline in better services and education. FBR crossing their domain by not consulting the relevant authorities and imposing tax base on numbers rather than reasons and devastating effects on economic.
FBR people are one of the top corrupt institutions in the country. They bargain a 10%on any eligible tax refund. Last month a unique such case unearthed in Lahore due to FBR staff's mutual conflict on who will get how much. They must be made loable to publicly share their weather an dtax returns so that public should know how much haram khori they do and increase their assets beyond means.