The Federal Board of Revenue (FBR) apparently made an illegal move by withdrawing the tax through simple “instructions” instead of getting the Sales Tax Act of 1990 amended by the National Assembly. Through the February 4 instructions, the government also withdrew the 17% sales tax imposed last month on the imports made by the President of Pakistan, Prime Minister of Pakistan and provincial governors. Despite repeated attempts, the FBR spokesperson did not reply to the questions whether tax could be withdrawn through a clarification or an administrative order. The FBR has also withdrawn the 17% GST imposed last month on goods imported under the President’s Salary, Allowances and Privileges Act, 1975, goods imported under the Prime Minister’s Salary, Allowances and Privileges Order,1975, goods imported under the Governor’s Salary, Allowances and Privileges, Order,1975 and goods imported under the Acting Governor’s (Allowance and Privileges) Order,1978. Sources said that it was an unwise move by the FBR to slap 17% tax on imports by foreign diplomats, diplomatic missions and the UN agencies.

Source: The Express Tribune February 09, 2022 04:15 UTC