Sales Tax registration (FBR)

What is Sales Tax?

Sales tax is a consumption-based tax levied on the sale of goods and, in some cases, services. It is typically collected by businesses from customers at the point of sale and then remitted to the government. The tax rate and rules governing sales tax vary by location, and it can be a significant source of revenue for governments. Sales tax is distinct from income tax and is paid by the end consumer when they make a purchase, making it an indirect tax. Businesses are responsible for collecting and remitting the tax to the tax authorities, which helps fund public services and infrastructure.