Tractor sales tax will rise by 4%, according to the Federal Board of Revenue (FBR).
According to the FBR’s notification, the sales tax on tractors made locally would increase from 10% to 14%, and import tractors will also be subject to the same increase.
Some sales tax exemptions for tractors have been limited, according to FBR officials.
They explained that even though the tax rate has dropped from 18% to 14%, this shouldn’t result in increased tractor pricing.
They added that the sales tax refund procedure will be simpler as a result of the tax rate drop.
