Additional ST introduced: New measures proposed to curb abuse of import concessions

ISLAMABAD: The federal government has proposed new measures to curb abuse of import concessions by manufacturers, introducing additional sales tax and penalties on supplies of same-state goods under the Finance Bill 2026. Explaining the amendment, Advocate Supreme Court Arshad Shehzad noted that commercial importers have long complained about the disparity in tax treatment. Imports by industries enjoy lower tax rates compared to commercial imports while commercial importers are subject to a three percent. To rationalize this disparity, the bill proposed that all such supplies of imported goods in the same state by manufacturers will now attract an additional three percent sales tax along with default surcharge. Furthermore, if these supplies exceed 50 percent of total turnover, manufacturers may face prosecution. The appropriate amendment in this regard is proposed in twelfth schedule of the Sales Tax Act 1990. Arshad Shehzad welcomed the amendment, describing it as a step toward ensuring a level playing field for all business players. Copyright Business Recorder, 2026

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