The sales tax rate of leather and textile products in Pakistan is adjusted to 5%

by:JIYALI     2021-08-05
The Federal Revenue Commission of Pakistan announced on Friday that the country’s domestic leather and textile product sales tax rate will be reduced to 5%. This adjustment can be traced back to June 13, 2013. Related to this, the committee also announced two other notices. Earlier, in the 2013-14 budget, leather and textile-related products were included in Annex 3 of the Sales Tax Act 1990, so a 17% retail tax was levied. Now this tax rate levied on retail prices has been reduced to 5%. The notice also mentioned that the sales tax rate of leather and textile intermediate products or raw material products outside of Pakistan's five free zones (a gathering point for export enterprises) has increased from 5% to 17%. It is reported that: FBR believes that tax cuts are only applicable to export companies, so if these products are sold outside the five free zones, the tax should be levied according to normal standards. According to the notice, the same sales tax rate has been applied to commercial importers and manufacturers in the import stage. Commercial importers and manufacturers are uniformly levied a 5% sales tax rate during the import process. Similarly, the notice applies to products other than serial numbers 22 and 36 in Annex 3 of the Sales Tax Act 1990 on retail textile products and any other products. Another issued notice is to delete the serial numbers 22 and 36 and other related clauses in Annex 3 of the tax law bill.
Custom message
Chat Online 编辑模式下无法使用
Chat Online inputting...
Thank you for your enquiry. We will get back to you ASAP