Karachi, December 16, 2024 – The Federal Board of Revenue (FBR) has issued a detailed list of goods eligible for zero-rating of sales tax for the tax year 2025. This development aligns with Section 4 of the updated Sales Tax Act, 1990, which specifies the categories of goods entitled to this concession. Zero-Rating of Sales Tax: Key Provisions According to the FBR, the following goods will be subject to a zero percent sales tax rate, notwithstanding the provisions of Section 3, except for sub-section (1A): 1. Exported Goods and Fifth Schedule Items o Goods exported out of Pakistan or specified in the Fifth Schedule of the Sales Tax Act, 1990, will qualify for zero-rating. 2. Supplies for Conveyances o The supply of stores and provisions for consumption aboard conveyances proceeding to destinations outside Pakistan, as specified under Section 24 of the Customs Act, 1969 (IV of 1969), is included. 3. Goods Specified by Federal Government Notifications o The Federal Government may designate additional goods for zero-rating through notifications in the official Gazette, particularly in circumstances requiring immediate action. These include situations related to national security, natural disasters, national food security in emergencies, or the implementation of bilateral and multilateral agreements. Conditions and Restrictions The FBR has clarified that…