Business

ISLAMABAD – The Federal Board of Revenue (FBR) has slashed the sales tax rate on the import of finished items of textile and leather sectors.

It has amended SRO 1125(I)/2011 and issued a new SRO107 reducing the sales tax rate to six percent from 17pc on import of these finished products for consumption in domestic market. The FBR will receive two percent value addition tax on import the goods.

Similarly, the sales tax at 17 percent plus two percent value addition tax will be applicable on the import of finished goods of carpets, sports and surgical sectors. Their supply thereof will be charged at 17 percent sales tax.

On the other hand, Pakistan registered eight percent growth in exports of textile and clothing products on year-on-year during the first quarter (July-September) of the financial year 2017-18, the Pakistan Bureau of Statistics (PBS) said on Monday.