5 Major Developments in Pakistan

5 Major Developments in Pakistan

• Sales Tax General Order: Refund to Manufacturers of Five Export Oriented Sectors – VATupdate
• Tax Agency Announces Sales Tax Rate on Specified Imports, Locally Manufactured Vehicles
• Computerised arms licences: FBR asked to confirm sales tax chargeability
• Pakistan increases Sales Tax and Federal Excise tax rates
• Notification about 25% sales tax for luxury items

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Customs

• Cabinet okays agreement with Saudi Arabia on customs cooperation

Deduction (Input Tax Credit)

• Sales Tax General Order: Refund to Manufacturers of Five Export Oriented Sectors – VATupdate

Excise

• Pakistan Circular Provides Overview of Sales Tax and Federal Excise Amendments in Finance (Supplementary) Act 2023

• Income tax measures, increases in sales and excise tax rates in “mini budget”

Exemption

• Pakistan Extends Tax Breaks For Flood-Affected Taxpayers

Export

• Sales tax, other issues: FBR invites textile exporters to a moot

Fraud / Tax Evasion

• Cabinet okays agreement with Saudi Arabia on customs cooperation

• RTO Peshawar intensifies operations against sales tax evaders

Importation

• Tax Agency Announces Sales Tax Rate on Specified Imports, Locally Manufactured Vehicles

• Pakistan Specifies Luxury Goods Subject to Enhanced Sales Tax

Legislative Change

• Sales Tax Act, 1990 amended up to 23rd February, 2023

Rate

• Tax Agency Announces Sales Tax Rate on Specified Imports, Locally Manufactured Vehicles

• Pakistan increases Sales Tax and Federal Excise tax rates

• Pakistan Specifies Luxury Goods Subject to Enhanced Sales Tax

• Notification about 25% sales tax for luxury items

• FBR imposes 25% GST on luxury items from March 8

• Pakistan Increases Sales Tax Rate, Introduces New Tax Deduction Rules for Share Acquisitions, and Reintroduces Advance Tax on Functions and Gatherings

• Pakistan Sales Tax Rate Increase to 18%

• Industry wide price hikes in auto sector following GST increase

• Income tax measures, increases in sales and excise tax rates in “mini budget”

• Pakistan sales tax increase 17% to 18%

• Pakistan finance bill proposes to raise GST rate to 18% from 17%

• Lower House Considers Supplementary Finance Bill 2023

• All packaged items become expensive in Pakistan after GST hike

• Govt increases sales tax on IMF demand MEFP draft sent to world lender as talks continue

• Pakistan finance bill proposes to raise GST rate to 18% from 17%

• Pakistan Hikes Sales Tax Rate To 18 Percent

• Govt, IMF at odds over Rs900bn fiscal gap, asks for rate increase

Refund

• Sales Tax General Order: Refund to Manufacturers of Five Export Oriented Sectors – VATupdate

Reporting / Compliance

• FBR’s Sales Tax Refund “FASTER” System is Not Working Since January

• Single Sales Tax Return Still Not Fully Implemented

• FBR fails to meet sales tax collection target

Taxable Transaction

• Computerised arms licences: FBR asked to confirm sales tax chargeability

Tax Authorities / Penalties

• FBR’s Sales Tax Refund “FASTER” System is Not Working Since January

• Cabinet okays agreement with Saudi Arabia on customs cooperation

• RTO Peshawar intensifies operations against sales tax evaders

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