As per sovereign agreement, the FBR has restored exemption on income acquired by Kuwait Foreign Trading Contracting and Investment Company in Pakistan.
Recently, in a Statutory Regulatory Order (SRO) the Federal Board of Revenue has notified that the sales Tax immunity to the local supply of single cylinder agriculture diesel engines of 3 to 36 HP, which was withdrawn under the Finance Supplementary Act, 2022 has been restored as well.
The board has also imposed sales tax exemption under the assistance provided by the Federal or Provincial Government on natural gas to consumers, including RLNG.
Similarly, the Fixed Tax Scheme has launched for retailers except for level-I retailers on commercial electricity connection which was effective from 1 July 2022 and the tax regime prior to the Finance Act 2022 has been restored.
Whereas, the Federal Government has been authorized to make any future scheme and regulate it’s modalities including tax rate or amount and the date when it will be applied for retailers to collect tax on commercial connections.
However, the new scheme is announced by the Federal Government, the last regime prior to Finance Act, of 2022 would remain in force.
