Islamabad: The Federal Board of Revenue (FBR) has imposed a 25% General Sales Tax (GST) on the import and local supply of luxury goods starting March 8, the news sources reported.
The FBR has imposed tax through an SRO 297(I)/2023 issued late Wednesday night and has directed local tax authorities to charge tax on items already in inventory or imported following the SRO release date. The luxury tax will be imposed on imported items, including:
Transportation: aircraft, ships, vehicles in Completely Built Up (CBU) condition, and locally manufactured/assembled vehicles with an engine capacity of 1,400 cc and above
However, the FBR SRO has exempted items specified in the Eighth Schedule to the Sales Tax Act, 1990, which includes computers, laptops, locally manufactured electric vehicles; road tractors for semi-trailers (Electric Prime Movers); electric buses; three-wheeled electric rickshaws; second-hand and worn clothing or footwear; cinematographic equipment. As per the source, the new GST will be charged on the value of the goods imported and their subsequent supply or retail price, as the case may be.
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