ISLAMABAD: The federal government has imposed major reforms in sales tax and federal excise laws, which has come into effect from August 2.
A notification has been issued in this regard. The major reforms include an action will be taken against those who assist in tax theft.
To ensure full monitoring of the movement of goods, a cargo tracking system and e-invoicing regulations are being implemented. A fine will be imposed for errors in digital bills related to cargo movement.
According to the notification from the Ministry of Finance, the responsibility for tax deduction on cash-on-delivery and online payments will lie with banks.
Those conducting digital sales within or outside the country must be registered with the FBR (Federal Board of Revenue). For unregistered businesses, their bank accounts, properties, and operations will be sealed or confiscated.
To ensure transparency in the supply chain, real-time entry of sales tax invoices will be mandatory. A Federal Excise Duty (FED) of ten rupees will be applied on chick births in the poultry sector.
The previously imposed FED on the transfer of plots has been abolished. Digital tracking has been made mandatory against tax evaders. Vehicles and goods of those producing fake cigarettes and beverages will be confiscated.
The sales tax on industrial units in FATA and PATA will be gradually increased from 2025 to 2029, the notification said.
