Sales Tax Hike on Tractors What Farmers Need to Know
According to the notification issued by the FBR, the sales tax on locally manufactured tractors has been raised from 10% to 14%, and the same increase applies to imported tractors.
The Federal Board of Revenue (FBR) officials stated that certain sales tax exemptions for tractors have been reduced. While the sales tax has been adjusted from 18pc to 14pc, the FBR officials clarified that this increase would not make tractors more expensive.
They further mentioned that this reduction in tax rate will simplify the sales tax refund process.
However, the Sindh Chamber of Agriculture disagreed, warning that the 4 percent sales tax hike will result in tractors becoming more expensive by around Rs80,000, adding more financial strain on farmers looking to purchase tractors.
FBR abolishes Customs Intelligence department
Earlier, the Federal Board of Revenue (FBR) abolished the Customs Intelligence Department due to poor performance and alleged involvement in smuggling.
As per details, the FBR restructured the Customs Intelligence and Investigation division, limiting its role to monitoring only. Additionally, the authority to stop or release consignments has been withdrawn from Customs Intelligence officers.
A notification was issued by the Federal Board of Revenue (FBR) chairman under the directives of the Prime Minister, outlining reforms and a new organizational structure.
Under this plan, Customs Intelligence will no longer have the power to conduct raids or sting operations.
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