ByIn a recent move aimed at streamlining tax calculations and ensuring fair tax contributions, the Federal Board of Revenue (FBR) has issued a new notification S.R.O. 1735(I)/2024—which sets a minimum retail price for tea. This notification, released by the Revenue Division of the Government of Pakistan, establishes a benchmark retail price specifically for calculating sales tax on tea, whether imported or locally supplied.
Key Points of the Notification
- Authority: The FBR is issuing this notification under the powers granted by the Sales Tax Act, 1990, specifically related to setting minimum retail prices for tax calculations.
- Purpose: The purpose of this notification is to establish a minimum retail price (excluding sales tax) for tea, whether imported or locally supplied. This is to ensure consistent tax application based on a standard minimum price, which helps in calculating sales tax liabilities.
- Specified Price:
- Product: Tea (falling under the Customs code 09.02).
- Minimum Retail Price: PKR 1,200 per kilogram, excluding sales tax.
- Implication for Sales Tax:
- If the actual import or supply price of tea is higher than PKR 1,200 per kg, the sales tax will be calculated based on that higher price.
- This means that PKR 1,200 per kg is the minimum benchmark, but any price above it will attract sales tax on the actual higher value.
- Effective Date and Reference: This notification is dated November 1, 2024, and is referenced with a unique file number for tracking (C.No.1/19-STB/2024)
