Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
  • Home
  • Islamabad
  • Karachi
  • Lahore
  • National
  • Transfers and Postings
  • Chambers & Associations
  • Business
No Result
View All Result
Customs Today
No Result
View All Result
Home Breaking News

FTO seeks tax exemption on bun & rusk in Budget 2025

byCT Report
27/02/2025
in Breaking News, Latest News, National, Slider News
Share on FacebookShare on Twitter

 MULTAN, February 26: The Federal Tax Ombudsman (FTO) has strongly recommended that the Federal Board of Revenue (FBR) consider granting sales tax exemption on local sales of bun and rusk in the upcoming Budget 2025, recognizing them as essential food items for the lower-income population. 

In a significant ruling, the FTO noted the FBR’s failure to issue a clear directive on the taxability of basic necessity items such as bread, bun, rusk, naan, and roti, despite multiple requests from the complainant. The order deemed this inaction as maladministration under Section 2(3) (ii) of the FTC Ordinance and urged immediate corrective measures. 

You might also like

Gold price jumps Rs5,700 per tola

22/08/2026

PVARA completes Pakistan’s Virtual Asset Framework, opens licensing portal

22/08/2026

The FTO directed the Member Tax Policy FBR, to respond to the complainant’s query regarding the correct tax treatment and reporting mechanism for these products in sales tax returns, ensuring alignment with legal provisions. Additionally, it stressed the need for the FBR to examine and incorporate a tax exemption for bun and rusk in the Budget 2025, acknowledging their significance in daily consumption patterns. 

The complainant specifically highlighted the overlapping tax classifications between Table-2 of the Sixth Schedule and Entry 87 of Table-I of the Eighth Schedule of the Sales Tax Act. The ambiguity in reporting various bread products in sales tax filings has caused compliance challenges, necessitating a clear policy directive. 

Furthermore, as per the World Bank’s Macro Poverty Outlook for Pakistan, real wage stagnation and limited employment growth will keep poverty rates close to 40% until FY 2026. Given the widespread economic hardships, particularly affecting daily wage earners, it is common to see workers starting their day with bun or rusk and tea a basic yet essential meal for survival. 

Recognizing the economic realities, the FTO emphasized the urgent need for FBR to reconsider the taxability of bun and rusk, aligning fiscal policies with social welfare priorities. Granting a sales tax exemption on these staple items in Budget 2025would provide much-needed relief to the lower-income population, ensuring affordable access to essential food products.

Related Stories

Gold price jumps Rs5,700 per tola

byCT Report
22/08/2026

KARACHI: Gold prices surged in both international and domestic markets, with the price of gold rising by $57 per ounce...

PVARA completes Pakistan’s Virtual Asset Framework, opens licensing portal

byCT Report
22/08/2026

ISLAMABAD: Pakistan’s Virtual Assets Regulatory Authority (PVARA) has opened its licensing portal for virtual asset service providers. The move completes...

KP approves Digital Payment Act to promote cashless economy

byCT Report
22/08/2026

PESHAWAR: The Khyber Pakhtunkhwa government has approved the Khyber Pakhtunkhwa Promotion of Digital Payment Act 2026, aiming to promote digital...

Aurangzeb, SRF delegation, discuss investment opportunities, economic cooperation

byCT Report
22/08/2026

ISLAMABAD: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb held a meeting with a high-level delegation of the Silk...

Next Post

Multan Enforcement seizes Indian origin painkiller “Tradadol” worth Rs8b

  • Terms and Conditions
  • Disclaimer

© 2011 Customs Today -World's first newspaper on customs. Customs Today.

No Result
View All Result
  • Transfers and Postings
  • Latest News
  • Karachi
  • Islamabad
  • Lahore
  • National
  • Chambers & Associations
  • Business
  • About Us

© 2011 Customs Today -World's first newspaper on customs. Customs Today.