The main VAT measures of the budget include the following:
- The advance tax on industrial raw material imports is reduced from 3% to 2%, while commercial importers see an increase from 5% to 7.5%.
- Government organizations and banks can now submit VAT returns within 20 days instead of 15, and construction companies will file returns every six months rather than monthly.
- The penalty for unlawful input VAT rebates is reduced to 30%-50% from 50%-100%, and the adjustment period for advance tax and VAT rebates is extended from four to six months.
- VAT rates are increased for various supplies, including construction services (from 7.5% to 10%) and online sales commissions (from 5% to 15%).
- Specific taxes on mild steel products and other production items are raised, with increases for cotton yarn and various hardware items as well.
- VAT exemptions are extended until June 2030 or 2027 for certain items and new exemptions are introduced for LNG imports, handicrafts, sanitary products, and more.
Source: Orbitax
