The Federal Board of Revenue (FBR) has once again clarified that the table prescribing tax rates for a minimum tax on a turnover basis has been substituted in the Finance Bill-2021 to provide relief to retailers of Fast Moving Consumer Goods (FMCG), including flour mills 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 mills would remain at 0.25 percent of the turnover instead of 1.25 percent as being generally interpreted.
The FBR further clarified that to boost the government’s drive to keep inflation under control and give maximum relief to the business community, General Sales Tax (GST) on wheat bran proposed to be enhanced to 17 percent in the Finance Bill is also being taken back.
