FBR Slaps 25% Sales Tax on Imported Luxury Items
The Federal Board of Revenue (FBR) has imposed a 25 percent sales tax on the import and local supply of a variety of luxury goods, including aerated water/juices, confectionery items, crockery/footwear, furniture, home appliances, jewellery, cosmetics, cigarettes, and vehicles in Completely Built Up (CBU) condition as well as locally produced/assembled vehicles with engine capacities of 1400cc and above.
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A 25 percent sales tax on luxury products has been imposed by the FBR as of March 8, 2023, per the S.R.O. 297(I)/2023 released on Wednesday.
The FBR has levied a 25% sales tax on local and imported supplies of:
- Aerated water and juices
- Confectionary
- Vehicles in CBU conditions
- Sanitary and bathroom wares
- Carpets (excluding those from Afghanistan)
- Chandeliers and lighting devices or equipment
- Chocolates
- Cigarettes, cigars and e-cigarettes
- Corn flakes and other ready-to-use cereals
- Cosmetics and shaving items
- Tissue papers
- Crockery
- Kitchenware and tableware and household articles
- Decorations or ornamental articles
- Dog and cat food only
- Doors and window frames
- Fish
- Footwear
- Fruits and dry fruits (excluding those imported through land routes or barter mechanisms)
- Furniture
- Home appliances CBU
- Ice cream
- Jams
- Jellies
- Preserved fruits and fruit and vegetable juices
- Leather jackets and apparel
- Mattress and sleeping bags
- Fresh, chilled, frozen, preserved, or processed meat
- Musical instruments
- Pasta
- Arms and ammunition excluding defense stores
- Shampoos
- Sunglasses
- Tomato ketchup and sauces
- A ship designed or adapted for use for recreation or pleasure or private use
- An aircraft designed or adapted for use for recreation or pleasure or private use
- Articles of jewelry (both precious metals and imitation)
- Wristwatches
The following items’ local supply would be subject to a 25% sales tax:
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SUVs and CUVs that are produced or built locally;
- Cars made or assembled locally with an engine capacity of at least 1400cc
- Cars with a twin cabin and four wheels, produced or assembled locally.
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