Provisions of Finance Act 2016 come into effect

President Mamnoon Hussain has granted assent to the Finance Act 2016.

The Federal Board of Revenue spokesperson Saturday said that some provisions of the Finance Act 2016 will be effective from the same day.

These include reduced rate of 8% sales tax on sugar; exemption from sales tax on pesticides and reduced rate of five percent sales on tractors.

Sales tax on urea fertiliser has also been reduced from 17 to 5%.

Sales tax on category ‘B’ mobile phones has been increased from 500 to 1000 rupee while those of category ‘C’ from 1000 to 1500 rupee.

Federal Excise Duty on aerated waters and beverages has been increased from 10.5% to 11.5%.

Federal Excise Duty on cement would be chargeable at the rate of one rupee per kilogramme instead of five percent on a bag.

FBR has asked all concerned to charge and pay sales tax and FED at the new rates on these items from on Saturday.