Sales Tax Instructions

Sales Tax Instructions, 2009
332(I)/78, dated 28.3.1978, is being restored. (A new entry added at S.No. 47 of
the Sixth Schedule).
(5) Exemption of sales tax on relief goods.—In the budget 1996-97, the words
―sales tax‖ were deleted from SRO 208(I)/70, dated 29.8.1970. As a result relief
goods imported under this SRO became chargeable to sales tax. Exemption of
sales tax on goods received in the event of a natural disaster or other catastrophe,
as gifts and relief consignments under SRO 208(I)/70, dated 29.8.1970, is being
restored. (A new entry added at S.No. 48 of the Sixth Schedule).
(6) Exemption of sales tax on cement.—Cement is being exempted from sales
tax. (A new entry added at S.No. 41 of the Sixth Schedule).
(7) Exemption of sales tax on cotton seed (a) used in the manufacture of
cotton seed oil (b) meant exclusively for sowing purposes.—Cotton seeds used
in the manufacture of cotton seed oil and for sowing purposes are presently
exempt from sales tax under SROs. (The exemptions have been incorporated in
the Sixth Schedule vide new entry added at S.No. 40).
(8) Exemption of sales tax on bagasse.—Bagasse used in house by sugar mills
as fuel is being exempted from sales tax. (A new entry added at S.No. 49 of the
Sixth Schedule)
(9) Fixed tax on brick kilns.—Brick kilns shall continue to remain chargeable to
fixed tax till 30.6.1998 under the Fourth Schedule. (Clause (d) of sub-section (2)
of section 3 amended accordingly).
(10) Levy of retail tax.—It is proposed to levy a retail tax from the date to be
announced by the Government later. The details of this levy are being worked out
in consultation with the trading community. Further instructions in this regard
would be issued in due course (Section 3AA added in the Sales Tax Act).
(11) Enforcement of sales tax on certain sectors of textile industry.—In the
budget 1996-97 sales tax was levied on cotton and textile industry. However, the
scheme could not be fully implemented. There were exceptions and informal
exemptions to certain sectors such as sizing and weaving etc. In order to remove
these aberrations, fixed sales tax shall be collected from weaving and processing
sectors. Sub-section (4) added to section 3 of the Act. The fixed rates of tax for
these sectors leviable from 1.7.1997 are being notified separately.
(12) Sales tax on supplies made by wholesalers, distributors, retailers, etc. of
the MS Products and importers.--- Supplies made in Pakistan by (a) all
importers (b) ship-breakers (c) wholesalers, distributors and retailers of Mild
Steel Products are being charged to tax at the standard rate of 12.5%. The persons
making such supplies are required to get registered and file returns like other
registrants. (Amendments made at S.No. 33 of the Sixth Schedule).
(13) Threshold for exemptions from Turnover Tax.--- The manufacturers with
an annual turnover of less than Rs. 300,000 (three hundred thousand rupees) shall