FBR relaxes Sales Tax conditions for key sectors

The Federal Board of Revenue (FBR) has relaxed the conditions for sales taxpayers, allowing several sectors to claim input tax without the stringent requirement of filing corresponding sales tax returns. 

This change was announced through SRO.1130(I)/2024, which amends the Sales Tax Rules of 2006.

This amendment, further modifying SRO 350(i)/2024, addresses ongoing issues with sales tax return filing. As a result, the requirement to file the corresponding sales tax return for claiming input tax has been relaxed for specific sectors.

The exemption applies to the following categories, effective from March 7, 2024:

Gas Transmission and Distribution Companies

Electricity Distribution Companies

Independent Power Producers and WAPDA

Third Schedule Items Issued to Distributors, Wholesalers, Retailers, Manufacturers, or Traders

Petroleum Exploration and Production Companies

Additionally, registered buyers can claim input tax if their suppliers have paid their sales tax liability as recalculated under the new provisions, within six days from the end of the month in which their returns were provisionally accepted.