Basic Food Products

VAT for Supply of Basic Food Products

According to Prakas No. 361.MEF.PK released on 3 April 2018, Value Added Tax (VAT) on basic food products will be considered as the State’s burden in respect of locally supplied food for a period from 3 April 2018 to 31 December 2019.

The Prakas defines basic food products as follows

• -Poultry (chicken and duck), meat, either raw, marinated or smoked, including beef, buffalo, goat, lamb and pork
• -All types of poultry eggs including raw, pickled and smoked
• -All types of river fish and seafood including lobsters, prawns, shrimp, crab and artificial meat whether raw, marinated, or smoked
• -All types of sugar which is not classified as candy (sweets)
• -All types of salt
• -All type of fish and soy sauce

Note

Accounting to Prakas 361, supply of the food in restaurants is taxable supply, so it is subject to value added tax (VAT).