ISLAMABAD: The Federal Board of Revenue (FBR) has established a minimum retail price of Rs. 1,200 per kilogram for both imported and locally supplied tea, impacting the calculation of sales tax on these products.
This decision, formalized through S.R.O. 1735(1)/2024 issued on Friday, aims to standardize the sales tax framework for tea sales. The newly set minimum retail price excludes sales tax and is intended to ensure compliance with tax regulations.
According to the notification, the FBR has invoked its authority under the first proviso to clause (46) of section 2 of the Sales Tax Act, 1990, to fix this minimum price for tea classified under heading 09.02 of the First Schedule to the Customs Act, 1969.
Should the actual market value of imported or supplied tea exceed the established minimum price, sales tax will be levied on that higher value. This regulation is part of the FBR’s broader efforts to streamline tax collection and enhance revenue from the tea sector.
