In the sales tax circular number 2 issued earlier this week, the Federal Board of Revenue (FBR) has abolished the fixed sales tax on SIM cards of the mobile phones, effective from July 1, 2021.
As per reports, the revenue authority said that sales tax of PKR250 on every SIM card charged by the authority under the provision of Table-I of the Ninth Schedule to the Sales Tax Act has been abolished with effect from July 1, 2020.
The body said, “Online marketplaces facilitating the supply of goods owned by third-party suppliers are required to withhold sales tax at the rate of two percent of gross value of supplies made by persons other than active taxpayers”.
Now the authority has allowed sales zero rating on local supply of raw material, components, parts and plant and machinery to registered exporters under Export Facilitation Scheme, 2021. As per FBR, milk and fat-filled milk have also been included in zero rated regime.
Meanwhile, to facilitate and encourage integration of tier-1 retailers, POS machines imported for installation on retail outlets as are integrated with the Federal Board of Revenue’s Computerized System have also been granted exemption from sales tax.
From : pk.mashable.com