KARACHI: Federal Board of Revenue (FBR) has brought gold, jewelry and other precious articles into sales tax ambit by introducing reduced rates on supplies.
Through Finance Act, 2019, the amendment has been introduced to Eight Schedule of Sales Tax Act, 1990 to bring gold, jewelry and other precious articles into sales tax net.
According to new sales tax rates on sales of gold, jewelry and other precious stones nominal rates have been introduced.
The sales tax on gold is now subject to one percent if it is in un-worked condition falling under HS Code of 7108.1100, 7108.1210 and 7108.1290.
Articles of jewelry, or parts thereof, of precious metal or of metal clad with precious metal falling under HS Code 71.13 will be subject to 1.5 percent sales tax of value of gold, plus 0.5 percent of value of diamond used therein, plus 3 percent of making charges.
The FBR said that no input tax adjustment to be allowed except of the tax paid on gold.
The FBR imposed three percent value addition sales tax on all imported goods subject to exclusion as in conditions and procedure given.
The three percent value addition tax on gold and silver will not be applicable.