Tax exemptions on food items, medicines to remain in place
ISLAMABAD: The Federal Board of Revenue (FBR) has prepared a mini-budget based on conditions set by the International Monetary Fund (IMF) for resuming the stalled loan programme, reversing a Rs350 billion tax relief on multiple products including mobile phones and imported vehicles.
According to details, the tax department has sen a draft of the proposed mini-budget to the law department for a vetting process before tabling it in the Cabinet for approval.
“Following the Cabinet’s approval, the bill will be either tabled before the parliament or enacted through an Ordinance,” sources said, adding that Schedule 6 of the Finance Bill 2021-22 would be amended for reversing the tax exemptions.
Detailing the sectors that would be affected after the proposed bill, sources said that tax exemptions on mobile phones, stationery, and pack food items will be lifted while sales tax exemption on zero-rated sectors will also be eliminated.
Furthermore, a uniform 17 per cent sales tax will be applied on all previously exempted sectors, taxes on luxury items will be increased and imported vehicles will be subject to additional taxes.
However, reportedly exemptions on food items and medicines will remain applicable.
document.getElementById( “ak_js” ).setAttribute( “value”, ( new Date() ).getTime() );