In a major development, the federal government has decided to remove the proposed 17% sales tax on wheat bran while undoing the decision to abolish a one percent rebate on annual sales of flour mills after flour mills started their protest against the proposed increase in taxes.
The Federal Board of Revenue (FBR) on Wednesday issued a clarification with regard to the table prescribing tax rates for a minimum tax on a turnover basis.
It claimed the table has been substituted in the Finance Bill-2021 to provide relief to retailers of fast-moving consumer goods (FMCG) including flour makers and refineries.
“The words ‘flour mills’ could not be mentioned inadvertently in the table which was an error and had been noted and would be rectified in the amended bill.
“This would mean that the minimum tax applicable on flour companies would remain at 0.25% of the turnover instead of 1.25% as being generally interpreted,” it said.
