Advertisements in newspapers and periodicals would continue to enjoy exemption from sales tax and federal excise duty. Meanwhile, the government has abolished 5 percent customs duty on import of newsprint and reduced the withholding tax from 6 percent to 1 percent.
While clarifying the imposition of excise duty on advertisements in the print media, the Central Board of Revenue (CBR) said on Wednesday that all excisable services, including advertisement in newspapers and periodicals, are required to be mentioned in Chapter 98 of the Pakistan Customs Tariff (PCT).
However, the services chargeable to excise duty are mentioned under Table-II of the First Schedule to the Federal Excise Act, 2005, according to which advertisements on CCTV and cable networks are chargeable to excise duty, while advertisements on radio and TV are chargeable to sales tax under the provincial Ordinance, 2000.
Advertisements in the newspapers and periodicals continue to enjoy sales tax and federal excise duty exemption, the Board added.
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