The National Board of Revenue (NBR) has announced the removal of VAT on several essential goods to maintain price stability in the market during the holy month of Ramadan.
NBR issued the relevant order on Monday.
The items listed include mustard oil, flour, semolina, lentils, LPG, biscuits, salt, and hot spices, among others. VAT exemptions have been granted at the production stage and, in some cases, at the business stage for these products.
According to the NBR’s notification, VAT exemptions will remain on rapeseed oil, colza seed oil, and canola oil at the production stage until June 30. However, VAT will also be exempt on mustard oil at the production stage, with no specific deadline mentioned in the order.
Additionally, VAT is being exempted at the business stage for domestically produced items, including biscuits, salt, flour, semolina, ground chili, coriander, turmeric, ginger, rice bran oil, sunflower oil, rapeseed oil, colza seed oil, canola oil, and pulses or pulse-based food grains.
Under specific conditions, VAT is also being waived for LPG and natural gas at the business stage. However, those who import and sell directly to consumers will not be eligible for the VAT exemption.
To avail of the VAT exemption on these products, certain conditions must be met. These include VAT registration, issuance of invoices, maintenance of all types of registers, and submission of monthly VAT returns.
