- Sales tax exemptions on imports increased by 74% in fiscal year 2025.
- Total exemptions on imports amounted to Rs372.53 billion, up from Rs214.68 billion the previous year.
- Exemptions on local supplies decreased to Rs330.54 billion from Rs461.09 billion.
- The shift suggests a focus on encouraging local production and controlling imports.
- Exemptions were granted under the Sixth Schedule of the Sales Tax Act, 1990.
- Total exemptions under this schedule reached Rs706.07 billion for FY2025.
- The increase in import-related exemptions may conflict with IMF commitments.
- The FBR faces pressure to reform the sales tax system and reduce market distortions.
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.
