Sales tax incentive granted on restaurants’ supplies

Author: Agencies

The government has announced an incentive on sales tax rate on supplies made by restaurants and eateries on account of takeaway. The Federal Board of Revenue (FBR) issued SRO 725(I)/2021, dated June 08, 2021, to exempt sales tax in excess of five percent chargeable on supplies made by restaurants and eateries on account of takeaway subject to the condition that no input tax shall be adjusted. The notification shall remain in force up to June 30, 2021.

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