On the directive of finance minister, Federal Board of Revenue Chairman Ansar Javed has directed all Large Taxpayer Units (LTUs) and Regional Tax Offices (RTOs) to strictly monitor that no sales tax is collected on essential items exempted under section 13, read with Sixth Schedule of the Sales Tax Act 1990. Federal Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization Mohammad Ishaq Dar has directed the FBR to issue list of those items that are exempted from sales tax.
Therefore, Chairman FBR has directed all LTUs and RTOs to strictly monitor that no sales tax is collected on essential items exempted under section 13, read with Sixth Schedule of the Sales Tax Act 1990 and has directed them to take proper action under the law against violators.
FBR also wants to inform the general public by all appropriate means that these essential items including vegetables, meat, milk, eggs, red chilies, fish, drugs, pulses, fruits, poultry, ginger, turmeric, cereals and products of milling industry, ice, poultry feed, butter, yogurt, butter, salt, potato, onions, bread, nan, chapatti, bun, rusk, and others continue to remain exempted from sales tax.
It was also clarified that the increase in the rate of sales tax from 16% to 17% under the declaration issued under the Provisional Collection of Taxes Act, 1931 does not affect any of these items, which are exempted under the Sales Tax Act, 1990.