Economics & Business

FBR allows packing material with sales tax @ 15% for three months

ISLAMABAD: After the amendments in the Sales Tax Act, 1990, through the Finance Act, 2008, the applicable rate of sales tax on items in Third Schedule of The Sales Tax Act, 1990, has been increased to 16% with effect from 1st July 2008 through the Finance Bill 2008. Manufacturers of items specified in Third Schedule to the Sales Tax Act, 1990, have reported difficulty in printing sales tax @ 16% of retail price on their existing stocks which have already been printed with sales tax @ 15% of the retail price.

Federal Board of Revenue, recognizing the enormity and impracticability of the task of re-printing of sales tax amount has allowed, through Sales Tax General Order No. 22 of 2008 dated 26th June, 2008, the usage of existing packing material and stock printed with sales tax amount @ 15% for a period of three months starting from 1st July 2008, subject to conditions mentioned in the said Order.

About the author

Rubab Saleem

Rubab Saleem is Editor of Pakistan Times

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