Understanding Sales Tax Rate Changes: Essential for Traders and Businesses in 2025-26

• Traders and businesses need to understand the impact of sales tax rate changes under the updated Sales Tax Act, 1990 for the tax year 2025-26.
• Sales tax changes affect pricing, imports, and business planning.
• Section 5 of the Act provides guidance on taxing supplies and imports with new rates.
• Tax on taxable supplies is applied at the rate in effect at the time of supply.
• For imported goods declared for home consumption, the tax rate is based on the date of goods declaration under Section 79 of the Customs Act, 1969.
• For goods cleared from a warehouse, the tax rate is based on the date of clearance declaration under Section 104 of the Customs Act, 1969.
• If a declaration is filed before arrival, the rate on the day the manifest is submitted applies.
• If tax payment is delayed beyond seven days, the rate on the date of actual payment is charged.
• Understanding these provisions helps traders adjust pricing, avoid compliance issues, and manage financial risks.

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.

---

---