As per Lawkidunya, Sales tax laws for businesses in Pakistan are governed by the Sales Tax Act, 1990, which was amended up to June 30, 2024. Here are the key aspects:

– Taxable Goods and Services: Sales tax is levied on the sale and supply of goods and services, except those exempted under Section 13 of the Sales Tax Act, 1990.
– Tax Rates: The standard sales tax rate is 18%, but some goods and services are subject to a higher rate of 25%.
– Registration: Businesses with a taxable turnover exceeding PKR 5 million are required to register for sales tax.
– Returns and Payment: Registered persons must file monthly sales tax returns and pay tax by the 15th of each month.
– Input Tax Credit: Registered persons can claim input tax credit on taxable goods and services purchased.

Additionally, the Tax Laws (Amendment) Act, 2024, introduced changes to the sales tax rates and exemptions. It’s essential to consult the Federal Board of Revenue (FBR) website or seek professional advice to ensure compliance with the latest sales tax regulations in Pakistan.