To stabilize the market during the holy month of Ramadan, the National Board of Revenue (NBR) has announced the removal of VAT on several essential goods. The exempted items include mustard oil, flour, pulses, LPG gas, biscuits, salt, and various spices. The exemption applies at both the production and business levels for different products.
On Monday (March 2), NBR issued an official notification regarding this decision, confirmed by a senior official.
As per the notification, VAT exemption will remain in effect at the production level for rapeseed oil, colza seed oil, and canola oil until June 30, 2025. Mustard oil is also exempt from VAT at the production level, but no expiration date has been specified for this exemption.
Additionally, VAT has been waived at the business level for locally produced products such as biscuits, salt, flour, wheat flour, semolina, chilli powder, coriander, turmeric, ginger, rice bran oil, sunflower oil, rapeseed oil, colza seed oil, canola oil, pulses, and pulse-based food grains.
Furthermore, VAT exemption has been granted on LPG and natural gas at the business level under certain conditions. However, businesses that import these products and sell them directly to consumers will not be eligible for the exemption.
To qualify for VAT exemptions, businesses must adhere to specific conditions, including VAT registration, issuing invoices, maintaining necessary records, and submitting monthly VAT returns.
