ISLAMABAD: Federal government plans to withdraw Value Added Taxes onImported Items, media has reported.
The government has planned to withdraw 3% value addition sales tax imposedon 32 products, claimed a report in *The Express Tribune.*
According to the report, the Ministry of Finance and Revenue will table asummary today before the federal cabinet to get its nod for amending theSales Tax Act of 1990 to give effect to these tax concessions.
The Ministry of Finance has proposed the abolition of 3% value added taxwhich is currently charged on 32 types of goods that are subject to maximumretail prices, according to the report. All the imported items arecurrently subject to 17% sales tax and 3% value added tax, bringing totalliability to 20%.
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Once approved by the federal cabinet, the 32 types of imported items willbe subject to a 17% standard sales tax. This will also significantly hitthe Federal Board of Revenue’s (FBR) revenue collection, which has fallenshort of the target by Rs64 billion in the first two months of the currentfiscal year.
