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). --- 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 tax has been increased from 17% to 18%. 2. Federal Government's Powers to enhance Sales Tax Rate In line with the provision of section 3(2)(b) of STA, the Federal Government has been empowered to enhance...