Income Tax Ordinance, 2001 has explained the meaning of ‘fast moving consumer goods’ for calculation and imposition of income tax.
The Income Tax Ordinance, 2001 updated up to June 30, 2020 issued by the Federal Board of Revenue (FBR) explained it as:
“Fast moving consumer goods” means consumer goods which are supplied in retail marketing as per daily demand of a consumer excluding durable goods.
The income tax applied under Section 153 shall be:
In the case of supplies made by the distributer of fast moving consumer goods,─
(i) in case of a company, 2 percent of the gross amount payable; and
(ii) in any other case, 2.5 percent of the gross amount payable.