Pakistan has published Circular No. 01 of 2023, which provides an overview of the important amendments introduced in the Sales Tax Act, 1990 (STA) and the Federal Excise Act, 2005 (FEA) through the Finance (Supplementary) Act, 2023 (previous coverage).

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1. Enhancement in Standard Rate of Sales Tax

In order to reduce fiscal gap and increase tax to GDP ratio, the standard rate of sales t…