Sales tax act updated by FBR incorporating new rates of 18% and 25%

ISLAMABAD: Federal Board of Revenue (FBR) on Tuesday issued updated Sales Tax Act, 1990 incorporating new sales tax rates of 18 per cent and 25 per cent.

The FBR made amendments to the Sales Tax Act, 1990 up to February 23, 2023, which introduced through Finance (Supplementary) Act, 2023 or the mini-budget.

The present government enhanced the normal sales tax rate to 18 per cent from 17 per cent and also introduced 25 per cent sales tax rates on supply of luxury items.