The government has extended the sales tax exemption on wheat bran with retrospective effect from July 1, 2018. This means that taxpayers who incurred sales tax liability on wheat bran in previous years will now be eligible for a refund. The amendment to the Sales Tax Act was made in the Finance Act 2023.
The exemption is expected to benefit businesses that use wheat bran as a raw material or as an animal feed. It is also likely to benefit consumers, as the price of wheat bran products may come down.
The amendment has been welcomed by the industry, which has been lobbying for the exemption for several years. The All Pakistan Flour Mills Association (APFMA) said that the exemption would "provide much-needed relief to the flour millers and the consumers".
The exemption is subject to certain conditions, such as the wheat bran being used for the specified purposes. The government has also said that it will monitor the impact of the exemption to ensure that it is not abused.
