FBR -Federal Board of Revenue is the Revenue Division of Government of Pakistan tasked with collecting taxes & duties and administrating relevant legislation.

Input tax is the tax paid by registered person on the taxable goods and services purchased or acquired by him. This also includes the sales tax paid on imports. Output Tax

Karachi, January 27, 2025 – The Federal Board of Revenue (FBR) has unveiled the detailed mechanism for the adjustment of input and output tax under the sales tax laws applicable for the tax year 2025.

On the return form, the taxpayer declares for a particular tax period and respective input tax and output tax, at prescribed rate of Sale Tax. In case input tax exceeds output tax, the amount of refund claimed or excess input tax is also declared in the return.

Through the budgetary measures for the financial year 2019-20, special procedures and other treatments for various sectors have been abolished and instead standard sales tax regime with right to input tax adjustment have been prescribed with effect from 1st July, 2019.

INPUT ADJUSTMENT LIMIT OF 90% OF OUTPUT WAIVED FOR CERTAIN SECTORS PROLOGUE Federal Board of Revenue (“FBR”) issued SRO 1190(I)/2019 dated: October 02, 2019 with respect to applicability of section 8B of Sales Tax Act, 1990 (“STA”). Section 8B provides that input tax amount, exceeding 90% of the output tax for a period, shall

Apr 14, 2024 · The Federal Board of Revenue (FBR) has introduced significant amendments to the Sales Tax Act, with a new bill that proposes redefining the rules for input tax adjustments. These changes aim to streamline revenue collection and curb inefficiencies but also raise several concerns for businesses.

Jan 27, 2025 · FBR unveils mechanism for adjustment of input and output tax under sales tax laws for 2025; Adjustment process covers cancelled or returned supplies, changes in tax amounts, and issuance of credit or debit notes; Buyers cannot claim input tax for cancelled, returned, or reduced tax supplies

Jul 23, 2023 · Federal Board of Revenue (FBR) has recently updated the Sales Tax Act, 1990, introducing clear definitions of input tax and output tax aimed at streamlining tax-related processes and providing greater clarity for taxpayers.

Nov 3, 2021 · Section 8B of Sales Tax Act, 1990 has defined provision for input tax adjustment. The Federal Board of Revenue (FBR) issued the Sales Tax Act, 1990 updated up to June 30, 2021. The Act incorporated amendments brought through Finance Act, 2021.