ISLAMABAD: The Federal Board of Revenue (FBR) has announced a 4 percent increase in sales tax on tractors. As per the notification from the FBR, the sales tax on domestically produced tractors has risen from 10% to 14%, with the same adjustment applying to imported tractors.

FBR officials indicated that some sales tax exemptions for tractors have been reduced. Although the sales tax rate has been adjusted from 18% to 14%, they emphasized that this change will not lead to higher prices for tractors.

They also noted that this tax reduction is intended to streamline the sales tax refund process.

However, the Sindh Chamber of Agriculture expressed disagreement, cautioning that the 4 percent increase in sales tax could lead to an increase of about Rs80,000 in tractor prices, further burdening farmers aiming to purchase tractors.

In related news, the FBR previously disbanded the Customs Intelligence department due to its ineffective performance and alleged links to smuggling activities.

Details reveal that the FBR has restructured the Customs Intelligence and Investigation division, now limiting its function to monitoring. Customs Intelligence officers have been stripped of their authority to halt or release shipments.

A notification outlining these reforms and a new organizational structure was issued by the FBR chairman under the Prime Minister's directives.

Under this new plan, Customs Intelligence will no longer have the ability to conduct raids or sting operations.