FBR to Slap 10% Sales Tax on Goods Made in ex-FATA/PATA in Budget

The Federal Board of Revenue (FBR) has proposed a 10 percent sales tax on goods manufactured in the ex-tribal areas under revenue enhancement measures tabled in the upcoming federal budget, top sources informed ProPakistani. Sources further disclosed that FBR has also tabled another proposal whereby the import of plant and machinery and inputs by industrial undertakings located in erstwhile Fata/Pata will no longer be exempt under the Sixth Schedule of the Sales Tax Act and will now be taxed next fiscal year. The proposals are aimed at improving direct tax collection to collect an estimated Rs. 14.3 trillion full-year tax revenue target from July onwards. According to the International Monetary Fund, the government has agreed to strengthen tax revenue collection to ensure general revenue becomes equivalent of a big chunk of the country’s GDP.