ISLAMABAD: In a major move to document unregistered sales tax persons, the Federal Board of Revenue (FBR) has increased the rate of “further sales tax” from 3 to 4 percent in the amended Finance Bill 2023.

Officials told Business Recorder that presently the rate of further tax is 3 percent on the supplies made to the un-registered persons. Under the amended Bill 2023, the rate of “further sales tax” has been increased by one percent to discourage supplies made to the unregistered persons. If a person intended to remain out of the sales tax net, he would pay higher rate of further tax at the rate of 4 percent.

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This is a documentation measure to discourage persons making supplies to the un-registered persons, they added. The requirement of shop areas for tier-1 retailers has been withdrawn under the Finance Bill 2023. Under the amended Finance Bill 2023, the 5 percent sales tax would be applicable on DAP fertiliser. This is subject to the condition that no refund of excessive input tax, if any, shall be admissible.

Copyright Business Recorder, 2023