Budget 2022/2023: Salient features of sales tax

Budget 2022/2023: Salient features of sales tax

ISLAMABAD: Following are the salient features of amendment made to Sales Tax Act, 1990 through Finance Bill, 2022.

The proposed budgetary measures pertaining to Sales Tax for FY 2022-23 are:

RELIEF MEASURES:

1. The condition of CNIC/NTN in case of supply to unregistered persons have been removed.

READ MORE: Budget 2022/2023: Salient features of income tax

2. Sales Tax exemption has been granted on import and supply of all types of seeds.

3. Sales Tax on Tractor is withdrawn.

4. Exemption has been granted on imports by UN diplomats/diplomatic missions and privileged persons.

5. Import and supply of solar panels (PV module) has been exempted from sales tax.

6. Goods imported by or donated to non-profit charitable hospitals have been exempted. Furthermore, goods supplied to charitable hospitals of fifty beds or more have also been exempted from sales tax.

7. Temporary imports have been exempted from the levy of the sales tax.

READ MORE: Pakistan allocates Rs800 billion for FY23 PSDP

8. Made up jewellery has been made chargeable to 3 per cent fix tax on local supply and 4 per cent fix tax on imports.

9. Plant and machinery imported by power generation projects that entered into implementation agreement with GoP has been exempted from sales tax.

10. Rs.90 per kg is reduced to Rs.60 per kg on potassium chlorate.

11. Import by EPZ has been exempted from sales tax.

READ MORE: Federal government presents budget 2022-2023

REVENUE MEASURES:

12. The scope of further tax has been enhanced to include non-active taxpayers as well.

13. Regime of other then Tier-1 retailers has been streamlined.

14. VAT has been imposed on compressor scrap, motor scrap and copper cutting scrap even when imported by manufacturers.

READ MORE: Tax exemptions cost Rs1.76 trillion in FY22

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