Explaining the Finance Bill 2019, expert said that the items are proposed to be included in Third Schedule of the Sales Tax Act 1990, which means that 17% sales tax on such items will be charged on minimum retail price fixed by the manufacturer or importer of such goods and no sales tax shall be charged subsequently.
According to the FBR, after withdrawal of the extra tax regime, the finished articles like Foams and mattresses, paints &varnishes, electric and gas home appliances, lubricating oils and Storage batteries will be placed in the Third Schedule.
Moreover, the extra tax regime is being done away with and items like electric and gas appliances, foam, confectionary, lubricants( in retail packing), batteries, tyres / tubes etc are being moved to Third Schedule (retail price taxation) of the Sales Tax Act, 1990, to realize full revenue potential thereon.
According to the revised Third Schedule of the Sales Tax Act 1990, the 17 percent sales tax on minimum retail price would also be applicable on foam or spring mattresses and other foam products for household use. Paints, distempers, enamels, pigments, colours, varnishes, gums, resins, dyes, glazes, thinners, blacks, cellulose lacquers and polishes sold in retail packing
Lubricating oils, brake fluids, transmission fluid, and other vehicular fluids sold in retail packing, storage batteries excluding those sold to automotive manufacturers or assemblers, tyres and tubes excluding those sold to automotive manufacturers or assemblers, motorcycles and auto rickshaws.