Following a warning from the Foreign Office (FO) that other countries may take Pakistan to the International Court of Justice over the move, the government has quietly withdrawn the 17 percent sales tax it imposed last month through the mini-budget on imports by foreign diplomatic missions and UN agencies.
Instead of having the Sales Tax Act of 1990 revised by the National Assembly, the Federal Board of Revenue (FBR) appears to have made an illegal move by eliminating the tax with simple “instructions.”