Sales Tax on APIs Reduced to 1% by the Pakistani Government 

government reduces sales tax on api to 1 percent


  • Sales Tax on APIs reduced to 1%
  • IT venture capital companies are exempted from income tax
  • Cinemas granted a 5-year break from paying income tax 

On 29th June, the amended Finance Bill 2022-23 was approved reducing the Sales Tax on APIs (active pharmaceutical ingredients) to 1% down from 17%. 

The bill was introduced by the current Finance Minister Miftah Ismail and State Minister Ayesha Ghaus Pasha.

The parliament has approved the amendments along with the original draft of the bill.

The amendment exempts families of federal government employees and martyred armed forces from deemed rental income. 

It also empowers the FBR (Federal Board of Revenue) to introduce fixed tax regimes of up to Rs 200,000 for service providers and retailers in the future.

The FBR will now inform the fixed tax schemes through notifications through a statutory regulatory order.

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