The Federal Board of Revenue (FBR) has announced an increase in the sales tax on both locally produced and imported tea.

This decision was made during a recent meeting of the Economic Coordination Committee (ECC) and is part of the government’s broader strategy to enhance revenue collection.

Under the new regulations, the sales tax on tea will rise from the current rate of 17% to 18%.

This adjustment aims to address the financial challenges faced by the government while also impacting tea consumers across the country.

The FBR’s move is expected to affect the pricing of tea, which is a staple beverage in Pakistan, consumed daily by millions.

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The increase in sales tax on tea comes amid ongoing efforts to boost the national revenue base and manage the fiscal deficit.

Officials have stated that the new tax rate will be implemented immediately, and they anticipate that it will contribute to the government’s revenue goals while ensuring compliance from the tea industry.