The Federal Board of Revenue (FBR) has withdrawn the fixed sales tax on the SIM cards of mobile phones from 1 July 2021.
The FBR has issued sales tax circular number 2 of 2021, and said that the sales tax on the Subscriber Identification Module (SIM) cards charged at Rs. 250 per SIM card under the provision of Table-I of the Ninth Schedule to the Sales Tax Act has been abolished with effect from 1 July 2021.
Online market places facilitating the supply of goods owned by third-party suppliers are required to withhold the sales tax at the rate of two percent of the gross value of the supplies made by persons other than active taxpayers, the FBR said.
It has allowed sales tax zero-rating on the local supply of raw material, components, parts, and plant and machinery to registered exporters under the Export Facilitation Scheme, 2021. According to the FBR, milk and fat-filled milk have also been included in the zero-rated regime.
Additionally, Border Sustenance Markets are being established along the borders with Iran and Afghanistan to mitigate the problems that the residents of the border areas of Balochistan and Khyber Pakhtunkhwa face due to fencing and counter-smuggling measures. To facilitate these markets, exemption on certain specified items has been granted by inserting the new Table-4 in the Sixth Schedule to the STA.
Similarly, exemption from federal excise has also been granted on specified items meant for such markets.
To facilitate and encourage the integration of tier-1 retailers, POS machines imported for installation on retail outlets as are integrated with the Board’s Computerized System have been granted exemption from sales tax.