Karachi, August 10, 2024 – The Federal Board of Revenue (FBR) has announced a significant increase in the sales tax rate on imported computers and laptops for the tax year 2024-25.
The new tax rate, which has doubled from the previous year, is set to impact the cost of these essential electronics in Pakistan.
Under the Finance Act, 2024, the sales tax on imported computers has been increased to 10%, up from the previous 5%, the FBR said. This change applies to both computers and laptops and is outlined in the Eighth Schedule of the Sales Tax Act, 1990. The FBR’s decision to double the sales tax rate is part of a broader effort to enhance revenue generation and address fiscal challenges.
The revised tax rates are expected to have a significant impact on the import and pricing of computers and laptops, which are crucial for education, business, and personal use. The increase may lead to higher costs for consumers, as importers and retailers adjust their pricing strategies to accommodate the new tax burden.
In addition to the changes in sales tax on computers, the FBR has also introduced several other modifications through the Finance Act, 2024, particularly in the Eighth Schedule. Key changes include:
• Imported LPG and Textile/Leather Supplies: The import of Liquefied Petroleum Gas (LPG) and supplies from integrated outlets of textile and leather articles have been moved into the standard tax regime. This shift is due to the omission of serial numbers 58 and 66 in Table-1 of the Eighth Schedule.
• Medicaments: The reduced sales tax rate of 1% on medicaments, previously classifiable under Chapter 30 of the First Schedule to the Customs Act, 1969, has been withdrawn. These items will now be subject to the standard sales tax rate of 18%.
• Other Goods: Several items that were previously exempt from sales tax, such as specified stationery, tractors, oil cake, poultry and cattle feed, various seed meals, vermicelli, and sheer mal, have now been made liable to a reduced sales tax rate of 10%.
The FBR’s announcement has sparked discussions among industry stakeholders, with concerns about the potential impact on both consumers and businesses. As the new tax rates come into effect, all eyes will be on how the market adjusts to these changes in the coming months.
