Finance Act, 2016 granted access 

Finance Act, 2016 granted access 
Shares

ISLAMABAD: (APP) The President on Friday granted assent to the Finance Act, 2016, Spokesman of Federal Board of Revenue (FBR) said.

A Spokesman highlighting the provisions of the sales Tax Act , 1990 and the Federal Excise Act ,2005 would, therefore, become applicable from June 25.

He said that Finance Act, 2016 has provided that certain provisions thereof shall come into force from the day next following the assent of the President to the Act.

The Spokesman said that under Finance Act, 2016, Sales Tax on Sugar - Sugar was exempt from sales tax whereas it was chargeable to FED @ 8%.

Through the Finance Act, 2016, exemption of sales tax from sugar has been withdrawn.

Moreover, FED on sugar has also been abolished. Now sugar is chargeable to sales tax at the reduced rate of 8%.

Pesticides and their active ingredients were chargeable to sales tax @ 7%. Through the Finance Act, 2016 pesticides and their active ingredients have been granted exemption from sales tax.

Agriculture Tractors were chargeable to sales tax @ 10%. Through the Finance Act, 2016 the rate of sales tax on agriculture tractors has been reduced to 5%.

He said that Urea Fertilizer was chargeable to sales tax at the standard rate of 17%. Through Finance Act, 2016 urea fertilizer will now be chargeable to sales tax @ 5%.

The Spokesman said that under the Finance Act 2016 , the rate of sales tax on Category "B" and Category "C" mobile phones has been increased from Rs. 500 and Rs. 1000 to Rs. 1000 and Rs. 1500 respectively.

Similarly, he said that aerated waters and beverages were charged to FED @ 10.5%. Through Finance Act, 2016 the rate of FED on aerated waters & beverages has been increased to 11.5%.

The Cement, he said  was chargeable to FED @ 5%. Through Finance Act, 2016 cement is now chargeable to FED @ Rs. 1 per kg.

The FBR Spokesman said that all the concerned taxpayers were therefore requested to charge and pay sales tax at the new rates given above with effect from June 25, 2016.

 

 

More from this category