The Federal Board of Revenue (FBR), which suggested the award of tax reductions on gold, silver, and jeweler, has rejected the anticipated reduction in taxes, which has angered Prime Minister Shahbaz Sharif.
The prime minister made the decision to connect all jewelers’ Points of Sale (POS) to the FBR’s system and classify them as Tier-1 retailers.
The planned cut in general sales tax on gold, silver, and jeweler was rejected, which angered the prime minister.
When the topic was brought up during a recent cabinet meeting, he was also against the concept of offering tax breaks on luxuries in the current challenging times.
The minister of finance and tax indicated that those recommendations were later included with the intention of reducing smuggling. The reduction in sales tax on gold, silver, and jeweler, however, was deemed improper by the majority of cabinet members.
It was also discussed whether to raise the sales tax on fertiliser and its components. Although the fertiliser sector was not passing on the benefits of subsidies to farmers, the cabinet members noted that raising the sales tax would cause fertiliser prices to spike right away unless a strong mechanism was devised for doing so. Earlier briefings on the budget for the fiscal year 2022–2023 were discussed with him.