Multan Chamber of Commerce and Industry (MCCI) on Monday hailed the decision of Federal Board of Revenue (FBR) to omit certain items from the Third Schedule of the Sales Tax Act 1990 and in lieu has levied two percent extra tax on the items to be paid by the manufacturers at ex-factory price instead of retail price thus facilitating the trade and industry.
FBR has amended its SRO 896 (I)/2013 on October 4. President MCCI Khawaja Muhammad Usman disclosed FBR vide this SRO has reduced the rate of withholding sales tax from 17 percent to one percent (un adjustable) on purchases from unregistered persons and waving the condition of seeking their CNIC/NTN.
He also hailed the exemption of the items chargeable to sales tax on retail prices from sales tax withholding regime, slashing down the rate for wholesaler, dealers and distributors from one-fifth (3.4pc) to one-tenth (1.7pc) of the applicable rate of sales tax, reduction of sales tax from five percent to three percent on imports and supplies of fabrics.
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