16 percent Sales Tax for June 21 – 29, FBR notifies

Karachi: The Federal Board of Revenue (FBR) to withdraw one percent increase in sales tax from June 21, 2013 to June 29, 2013 in accordance with the Supreme Court order, according to a notification issued on Monday.
In a Statutory Regulatory Order (SRO) “the sales tax rate shall be charged and collected on import and local supply of goods at the rate of 16 percent, for the period from June 21 to June 29, the FBR said.
The Sales Tax rate of 16 percent increased to 17 percent in the federal budget of 2013/2014 to boost the revenue collection. However, the Supreme Court on June 21 declared the government decision unconstitutional.
There were serious practical problems for the taxpayers due to tax rates for the month of June. The sales tax rate was 16 percent from June 01 to June 12 after budget the rate was 17 percent till June 20 and then the rate returned to 16 percent by the end of June, FBR officials said.
According to FBR official, despite the order of the SC many taxpayers deducted the sales tax at 17 percent and deposited to national exchequer. After the decision the FBR will refund the amount.

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