Federal government decides to withdraw Value Added Taxes on Imported Items
ISLAMABAD: Federal government plans to withdraw Value Added Taxes on Imported Items, media has reported.
The government has planned to withdraw 3% value addition sales tax imposed on 32 products, claimed a report in *The Express Tribune.*
According to the report, the Ministry of Finance and Revenue will table a summary today before the federal cabinet to get its nod for amending the Sales Tax Act of 1990 to give effect to these tax concessions.
The Ministry of Finance has proposed the abolition of 3% value added tax which is currently charged on 32 types of goods that are subject to maximum retail prices, according to the report. All the imported items are currently subject to 17% sales tax and 3% value added tax, bringing total liability to 20%.
Once approved by the federal cabinet, the 32 types of imported items will be subject to a 17% standard sales tax. This will also significantly hit the Federal Board of Revenue’s (FBR) revenue collection, which has fallen short of the target by Rs64 billion in the first two months of the current fiscal year.