According to the news sources, the government is all set to issue a presidential decree abolishing the sales tax exemption, zero rating and low sales tax rate which is expected to generate roughly Rs 330 billion. The notice in this regard is expected within next two weeks.

Any Ordinance to be issued will be called the Tax Laws (Fourth Amendment) Ordinance 2021.

This is expected to boost FBR’s revenue for the current fiscal year (FY22).

However, the report states that exemptions from sales tax, zero-rate sales tax and all types of reduced sales taxes are subject to the standard sales tax of 17%. The government will also remove all zero-rate sales taxes other than exports.

In this regard, the government has instructed the FBR, the law ministry and the Finance Division to begin work on the presidential ordinance.

In addition, the report also argued that the government could levy 17% sales tax on mobile phones on the CKD / CBU form under Schedule IX of the 1990 Sales Tax Act.

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