Many believe that previous governments in Pakistan have conscientiously avoided taxing the cause of education but the Federal Board of Revenue (FBR), tax collector institution in Pakistan however sees only one cause ‘ruthless taxation of anything and everything’.
According to a high-up in stationery industry “hidden away from the Finance Bill 2013-14, the FBR has taxed the “right to education” by taxing books, exercise books, pencils, pens etc. with [immediate] effect from 13thJune 2013 through controversial S.R.Os No. 501 and 502.”
Source told TheNewsTribe on the condition of anonymity that these items were earlier “zero-rated” (means free from input and output tax), have now been declared “exempt”. But don’t be misled with FBR’s fancy tax jargons !
It is to mention here that an exemption from Sales Tax means that manufacturers of educational items may not necessarily pay Sales Tax on their Sales but would still be liable to pay 17% tax on their Industrial Purchases.
Economic expert in Pakistan believe that this shocking incidence of Sales Tax shall be transferred to poor masses in the shape of increased prices of locally produced educational stationery.
“If this clandestine tax disguised as “exemption” is allowed to be imposed, the FBR shall win but the country and the cause of education shall loose” said the source.