Govt Announces To Retain The Tax Exemptions



Govt Announces To Retain The Tax Exemptions
According to the Tax Laws Fourth Amendment Bill 2021 which is set to be presented to the National Assembly, the government has decided to retain sales tax exemption on electric vehicles and kits imported by local manufacturers of such vehicles.
Top officials claimed that the Tax Laws Fourth Amendment Bill 2021 will withdraw the sales tax exemption of Rs 350 billion in Near future.
According to sources, the Government has announced exemption up to 17% sales tax on electric vehicles. Until June 30, 2026, sales tax exemptions will be maintained on the import of CKD in the form of kits of the following electric vehicles from local manufacturers:
• Small cars / SUVs with 50 kWh battery o r less; And
• Light commercial vehicles LCVs with 150 kWh battery o r less
• Sales tax exemptions will be maintained on imports of CKD kits by local manufacturers of the following electric vehicles:
• Road tractor o r semi trailer electric prime movers
• Electric buses
• Three wheeler electric rickshaw
• Three Wheeler Electric Loader
• Electric truck
• Electric motorcycle
Some sales tax exemptions will be maintained, including import and supply of construction materials, machinery, equipment and materials to investors in Gwadar Export Processing Zone and Export Processing Zone Gwadar o r other Export Processing Zones.
Exemptions given to Chinese companies under CPEC will remain in force even after the enactment of the Tax Laws Fourth Amendment Bill 2021. These items include Special Technology Zone Authority, Zone Developers, and Zone Enterprises within the Special Technology Zone.
Exemption on import of raw materials, spare parts, spare parts and plant and machinery through authorized registered persons under Export Facilitation Scheme 2021 will be maintained.
Ninth Schedule Mobile Phones The Eighth Schedule conditional sales tax exemption and the Sixth Schedule exemption of the Sales Tax Act 1990 will be reduced and only a few entries will remain in the said schedule. The Federal Board of Revenue will eliminate all zero rated goods Fifth Schedule except Export and Capital Machinery Goods and transfer them to the standard rate of 17% sales tax.
The FBR will eliminate the waiver Sixth Schedule, which includes 17% for all but a small subset of goods i.e. basic food, medicine, live animals for human consumption, education, and health related items.
In the same way, the FBR will abolish reduced rates under Schedule 8 and bring all these items to standard sales tax rates. The Ninth Schedule to the Sales Tax Act cannot be completely repealed, but some phones will be subject to a standard sales tax rate of 17%.Third schedule items will be retained on which sales tax has been levied on the basis of printed retail price.
Stay tuned with Gari.PK to get latest news and updates from the local and international automotive sector. You can also check the Car Prices 2021 Pakistan for all new cars and used cars and prices of motorbikes in Pakistan as well.
Top officials claimed that the Tax Laws Fourth Amendment Bill 2021 will withdraw the sales tax exemption of Rs 350 billion in Near future.
According to sources, the Government has announced exemption up to 17% sales tax on electric vehicles. Until June 30, 2026, sales tax exemptions will be maintained on the import of CKD in the form of kits of the following electric vehicles from local manufacturers:
• Small cars / SUVs with 50 kWh battery o r less; And
• Light commercial vehicles LCVs with 150 kWh battery o r less
• Sales tax exemptions will be maintained on imports of CKD kits by local manufacturers of the following electric vehicles:
• Road tractor o r semi trailer electric prime movers
• Electric buses
• Three wheeler electric rickshaw
• Three Wheeler Electric Loader
• Electric truck
• Electric motorcycle
Some sales tax exemptions will be maintained, including import and supply of construction materials, machinery, equipment and materials to investors in Gwadar Export Processing Zone and Export Processing Zone Gwadar o r other Export Processing Zones.
Exemptions given to Chinese companies under CPEC will remain in force even after the enactment of the Tax Laws Fourth Amendment Bill 2021. These items include Special Technology Zone Authority, Zone Developers, and Zone Enterprises within the Special Technology Zone.
Exemption on import of raw materials, spare parts, spare parts and plant and machinery through authorized registered persons under Export Facilitation Scheme 2021 will be maintained.
Ninth Schedule Mobile Phones The Eighth Schedule conditional sales tax exemption and the Sixth Schedule exemption of the Sales Tax Act 1990 will be reduced and only a few entries will remain in the said schedule. The Federal Board of Revenue will eliminate all zero rated goods Fifth Schedule except Export and Capital Machinery Goods and transfer them to the standard rate of 17% sales tax.
The FBR will eliminate the waiver Sixth Schedule, which includes 17% for all but a small subset of goods i.e. basic food, medicine, live animals for human consumption, education, and health related items.
In the same way, the FBR will abolish reduced rates under Schedule 8 and bring all these items to standard sales tax rates. The Ninth Schedule to the Sales Tax Act cannot be completely repealed, but some phones will be subject to a standard sales tax rate of 17%.Third schedule items will be retained on which sales tax has been levied on the basis of printed retail price.
Stay tuned with Gari.PK to get latest news and updates from the local and international automotive sector. You can also check the Car Prices 2021 Pakistan for all new cars and used cars and prices of motorbikes in Pakistan as well.
Related Auto News Updates
Latest Discussions
Comments
Add a Comment "Govt Announces To Retain The Tax Exemptions"