- FBR explains key concepts of sales tax laws in light of Finance Act 2025 reforms
- Sales tax is a levy on sale, supply, and import of goods in Pakistan
- Governed by Sales Tax Act 1990 and Islamabad Capital Territory Tax on Services Ordinance 2001
- Understanding sales tax is essential for compliance and avoiding mistakes
- Input tax is paid on buying taxable goods or services; output tax is charged on selling them
- Businesses must calculate the difference between input and output taxes
- Sales tax applies to most goods unless exempted under Section 13 and Sixth Schedule
- Exemptions can be granted through official notifications known as SROs
- Nearly all imported goods are subject to sales tax unless exempted
- FBR aims to reduce confusion and make compliance more approachable
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.
