Tuesday, 28 May 2024

No sales tax on wheat flour and related items

ISLAMABAD: It is for general information and in order to avoid any confusion on the matter mentioned above. It is clarified that no sales tax had been imposed on wheat flour in any form of Aata, Maida or Suji.

In the wake of changes introduced in the Sales Tax Act, 1990, through the Finance Act, 2019, it is being generally reported in the media that the sales tax had been imposed on wheat flour.

It is further elaborated that serial number 19 of the Table-1 of Sixth Schedule to the Sales Tax Act, 1990, has been amended through the Finance Act, 2019, to withdraw exemption those products of milling industry, other than wheat and meslin flours, which are sold in retail packing having brand name or a trademark.

It is pertinent to mention here that this amendment does not affect the exemption already available to wheat flour and it remains exempted from sales tax under the sales tax act 1990. Even if it is packed or sold under a brand or trade name.


Further, it is also clarified here that through the Finance Act, 2019, a new serial number 59 was added to the Table-1 of Eighth Schedule to the Act, whereby the sales tax at reduced rate of 10pc has been imposed on the products of milling industry except wheat and meslin flour if sold in retail packing under a brand name or trademark.

See also  Federal Board of Revenue (FBR) ceased manual processing of income tax refunds


This serial number ( amendment ) also excludes wheat flour and therefore sales tax not applicable to wheat flour.


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