The Federal Board of Revenue (FBR) has raised the rate of “Further Tax” on supplies made to unregistered persons from 3% to 4%.
FBR new “Further Tax”
Further Tax is levied by the FBR on supplies of taxable goods made by a registered person to a person who has not obtained a sales tax registration number or who has obtained a registration number but is not an active taxpayer, according to a sales tax circular issued by the FBR.
The sales tax rate under sub-section (1A) of Section 3 of the Sales Tax Act was previously 3 percent, but has now been increased to 4 percent by the Finance Act of 2023.
Exemption from sales tax available to industrial units located in the jurisdiction of former FATA/PATA under S. No. 151 and 152 of Table-1 of the Sixth Schedule to the STA on supplies and imports of plant, machinery, equipment, etc., and electricity respectively, expired on 30.06.2023.
The period of said exemption has been extended until June 30, 2024, according to the circular, in order to promote and support the industry that has provided employment in said territory.
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