ISLAMABAD, AUGUST 4: The Sales Tax on tractors increased by 14% from 10% according to governmental plans.
Tractor sales tax exemption was eliminated and replaced with a 10% levy in the 2024–25 budget. In a recent meeting, the Federal Board of Revenue completed a proposal in which Sales Tax on tractors increased by 14%.
Cabinet consent is required before the tax increase becomes operative.
The summary has been given to the Cabinet for assessment by the Finance Ministry.
According to authorities, the tractor business experiences refunds since 10% of the input is not fully consumed at an 18% ordinary sales tax rate. The government is contemplating raising taxes in order to decrease these reimbursements.
Tractor sales are subject to a 10 percent sales tax as on July 1, 2024, following the Finance Act 2024. Tractors were not subject to sales tax in the past.
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