Sales Tax Rate Decreased on Deliver Restaurant Products

Without an input tax adjustment facility, Government Income Board (FBR) cut its sales tax from 7.5% to 5% on restaurant and food stores' goods by 30 June 2021.

A tax expert said that the FBR decreased the sales tax rate on restaurant take-offs from 7.5 to 5%, although the adjustment for input tax was made earlier. The removal of the input tax adjustment facility for utilities would have a major impact on restaurants, while the sales tax rate would be cut.

On Tuesday, the FBR issued a notice to lower sales tax on restaurant takeovers inside federal capital jurisdiction.

The Federal Government has been glad to exempt from sales tax exceeding 5% tax on supplies made by restaurants and restaurants under take-off circumstances under the notice following paragraph (a) of subparagraph (2) of Section 13 of the Act 1990 of the Sales Tax Act.

The notice remains in force until 30 June 2021. It has been added.

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