ST on supplies reduced

ISLAMABAD: The Federal Board of Revenue (FBR) has reduced sales tax from 7.5 percent to five percent, without facility of input tax adjustment, on supplies made by restaurants and eateries on account of takeaway up to June 30, 2021.

Through a notification, the FBR has reduced sales tax rates on takeaways from restaurants from 7.5 percent to five percent; however, input tax adjustment allowed earlier has been taken away, a tax expert said.

In this regard, the FBR has issued a notification here on Tuesday to reduce sales tax on takeaways from restaurants within the jurisdiction of the federal capital. According to the notification, in exercise of the powers conferred by clause (a) of sub-section (2) of section 13 of the Sales Tax Act, 1990, the government is pleased to exempt sales tax in excess of five percent chargeable on supplies made by restaurants and eateries on account of takeaway subject to the conditions that no input tax shall be adjusted.—SOHAIL SARFRAZ