Sales Tax is a tax levied by the FBR under the Sales Tax Act, 1990, on sale of goods and services and also on the goods imported into Pakistan.
SALES TAX RATES
SALES TAX RATES
WHAT WILL BE THE RATE OF
SALES TAX FOR ITEMS SOLD BY THEINTEGRATED BUSINESSES?
FBR Digital Invoice integration is mandatory for all tier-1 retailers irrespective of the items they are dealing in. All businesses, whether dealing in textile and leather items or any other item, are required by law to integrate their POSs with FBR’s system.
| Item category | Rate of sales tax | Example |
|---|---|---|
| Items falling in Sixth Schedule to the Sales Tax Act, 1990 | Exempt i.e. no sales tax to be charged | Milk, rice, wheat flour, pulses, fruits & vegetables (except canned and packaged), uncooked meat,poultry, eggs, stationary items, medicines, laptops and personal computers etc |
| Items falling in Eighth Schedule to the Act | Reduced rate as provided in the Schedule | Dairy items other than milk, fatfilled milk (tea-whitener), flours other than that of wheat, if sold in retail packing under a brand name, are subject to sales tax rate of 10%; and prepared products of meat or meat offal, if sold in retail packing under a brand name, are subject to sales tax rate of 8%; Precious jewellery at 1.5% of value of gold, plus 0.5% of value of diamond, used therein, plus 3% of making charges |
| Finished fabric, and locally manufactured finished articles of textile and textile made-ups and leather and artificial leather (See S. No. 66 of Table 1 of Eighth Schedule) | 14% | Locally manufactured Garments, shoes, bags, made-ups etc of textile, leather and artificial leather |
| Mobile phones and satellite phones | Under Ninth Schedule, sales tax is to be paid by the importer and manufacturers only. No sales tax to be charged on subsequent supplies. However, suppliers may pass on the burden of sales tax charged on their purchases in their selling price | Mobile phones and satellite phones |
| Items not covered above | Standard 17% | Items in Third Schedule except fertilizers, imported textile and leather items, electronic items, watches, sugar, hardware, sanitary ware, kitchenware, toys, furniture, sports goods, surgical instruments, crockery, plastic products, imitation jewellery, etc |