No Double Taxation: FBR, SRB Settle Sales Tax Dispute

In a breakthrough, the federal government and the Sindh government on Thursday signed a joint statement to settle a long-standing sales tax dispute on toll manufacturing. The joint statement, submitted by the Federal Board of Revenue (FBR) and the Sindh Revenue Board (SRB) in the Sindh High Court (SHC), paved the way for the resolution of all petitions and reference applications concerning the collection of sales tax on toll manufacturing. According to the statement, following the directions of the Supreme Court’s order dated June 6, 2024, and the SHC’s order dated May 27, 2025, several meetings were held between FBR and SRB representatives to resolve the matter in light of the relevant statutes — the Sindh Sales Tax on Services Act, 2011 and the Sales Tax Act, 1990. Key points of the settlement include: In light of this consensus, the Sindh High Court has disposed of the pending litigation, marking a significant resolution to the dispute.