From July 1, 2021, the Federal Board of Revenue (FBR) will no longer charge a set sales tax on SIM cards for mobile phones. On Thursday, the FBR issued Sales Tax Circular No. 2 for the year 2021.
With effect from July 1, 2020, the sales tax on Subscriber Identification Module (SIM) cards, which was imposed at Rs250 per SIM card under the provisions of Table-I of the Ninth Schedule to the Sales Tax Act, has been eliminated, according to the FBR.
According to the FBR, online marketplaces that facilitate the supply of goods owned by third-party suppliers are required to withhold sales tax at a rate of 2% of the gross value of supplies made by non-active taxpayers.
Under the Export Facilitation Act, the FBR has permitted registered exporters to receive zero-rated sales tax on local supplies of raw materials, components, parts, and plant and machinery.
Milk and fat-filled milk have also been included in the zero-rated regime, according to the FBR. Border Sustenance Markets are being constructed on the border with Iran and Afghanistan to alleviate the challenges experienced by people living in border districts of Balochistan and Khyber-Pakhtunkhwa owing to fencing and anti-smuggling procedures.
Exemption on certain specified commodities has been granted by inserting new Table-4 in the STA’s Sixth Schedule to support the said markets.
Similarly, federal excise duty exemptions have been granted on certain commodities destined for these markets.
