- FBR announced a new method for determining cement sales tax value using SPI data from PBS.
- Minimum retail price of cement will be based on average national retail prices from PBS SPI reports.
- Prices will be assessed twice a month using SPI data before the 1st and 16th, applied to corresponding periods.
- Implementation starts May 1, 2025, for calculating sales tax as per the Sales Tax Act, 1990.
- The policy follows a significant price hike in cement, with a 16 percent increase year-on-year.
- The revised valuation is expected to increase the tax burden due to rising cement prices.
- FBR has used similar methods for other commodities, like sugar, to improve tax collection.
- The strategy aims to enhance transparency and uniformity in sales tax assessments in volatile sectors.
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
