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Tax collection in distress: FBR imposes 5% sales tax on second-hand and worn clothes
A desperate federal government has imposed 5% sales tax on import and domestic supply of second-hand and worn clothes, which are largely consumed by poorest of the poor.
To give effect to the decision, the Federal Board of Revenue (FBR) issued a notification here on Friday. According to the notification, sales tax at the rate of 5% will be charged and collected both on import and domestic supply of second-hand and worn clothing.
Second-hand clothes are used by the poorest class of the country, particularly in winters. The move has again raised questions over the government’s policy that has so far hurt the lower and middle classes and given relief to the rich.
Former finance minister Dr Hafiz Pasha has termed the government’s policy anti-poor and pro-rich. In the budget, the government cut the income tax on asset management companies by 10% to 25% but increased the sales tax by one percentage point to 17% that has affected every citizen irrespective of his social status.
more
Tax collection in distress: FBR imposes 5% sales tax on second-hand and worn clothes – The Express Tribune
A desperate federal government has imposed 5% sales tax on import and domestic supply of second-hand and worn clothes, which are largely consumed by poorest of the poor.
To give effect to the decision, the Federal Board of Revenue (FBR) issued a notification here on Friday. According to the notification, sales tax at the rate of 5% will be charged and collected both on import and domestic supply of second-hand and worn clothing.
Second-hand clothes are used by the poorest class of the country, particularly in winters. The move has again raised questions over the government’s policy that has so far hurt the lower and middle classes and given relief to the rich.
Former finance minister Dr Hafiz Pasha has termed the government’s policy anti-poor and pro-rich. In the budget, the government cut the income tax on asset management companies by 10% to 25% but increased the sales tax by one percentage point to 17% that has affected every citizen irrespective of his social status.
more
Tax collection in distress: FBR imposes 5% sales tax on second-hand and worn clothes – The Express Tribune