ISLAMABAD: After a warning from the Foreign Office (FO), the government took back its decision of imposing the 17 per cent sales tax on imports from United Nations agencies and foreign diplomatic missions imports. The FO warned the government that countries could move legally and take the case against Pakistan to the International Court of Justice.
The government had imposed a 17pc General Sales Tax (GST) on imports through the United Nations agencies, diplomatic missions and diplomats. The GST was part of the mini-budget applied after the demand of International Monetary Funds.
Apparently, the Federal Board of Revenue (FBR) was supposed to attain the 1990 Sales Tax Act, which the National Assembly amended before imposing taxes. The taxes imposed on imports made by President, Prime Minister, and governors from their salaries were also withdrawn.
Reportedly, the FBR has not responded on the matter. It is said that relatively inexperienced officers were handling the affairs that caused the problem in the first place. The FBR spokesperson is yet to issue any statement on the development.