ISLAMABAD: The federal government has reduced sales tax to one percent from the existing 17% on the import of active pharmaceutical ingredients (APIs) besides some other minor amendments to income tax rates in Finance Bill 2022-23.
The amendments were introduced in the National Assembly by Finance Minister Miftah Ismail and State Minister Ayesha Ghaus Pasha. The parliament approved the amendments along with the original draft of the finance bill.
No tax will be charged on the imports of smartphones in CKD/SKD conditions if imported by local assemblers/manufacturers duly certified by Pakistan Telecommunication Authority (PTA) subject to its quota. The facility will further be subject to conditions.
A new section has been introduced which empowers the Federal Board of Revenue (FBR) to introduce fixed tax regimes up to Rs200,000 for retailers and services providers in the future. The FBR will now notify the fixed tax schemes through a notification from time to time through a statutory regulatory order.
The information technology venture capital companies have been exempted from income tax, while cinemas have been granted a five-year break from paying any income tax across the country.
Families of shaheed of armed forces and the federal government have been exempted from deemed rental income.
The government has further included three charitable organisations — Burhani Qazran Hasana Trust, Saifee Hospital Karachi and Saifiyah Girls Taalim Trust — in the second schedule for exemptions from tax.
