Sales Tax Instructions

Sales Tax Instructions, 2009
Headings
(The items listed in the Sixth Schedule are exempt from Sales Tax vide Section 13 of the
Sales Tax Act.)
4. The expression against serial No.43 of the Sixth Schedule depicts ―Raw
Materials for manufacture of pharmaceutical products‖ and not the ―Pharmaceutical Raw
Material‖. The difference between the two can be appreciated. The former is levy vast
expression and include every raw material used in the manufacture wherein the latter
confines the scope of the expression to the chemicals which are used to produce drugs.
5. The contention of the delegated legislation (SRO) was to allow the
concession on all type of raw material which go into production of infusion giving sets /
IV solution therefore, SRO 457(I)/88 included Pigments (Plastic Colours), Needless and
Medical Paper besides Polyethylene ( Pharmaceutical Grade).
6. Keeping in view the above circumstances, Board is of the opinion that
sales tax should not be chargeable to polyethylene granules (Pharmaceutical Grade),
which is raw material for manufacturer of I.V. Solution. Collectorate of Customs
(Appraisement) may deliberate upon the issue and send a detailed report to the Board
pending the enforcement of demand for the sales tax on such imports till the final ruling
of the Board.
[Issued by the Govt. of Pakistan, Central Board of Revenue, Customs Wing, under the
signature of Raja M. Akhtar Tahir, Chief (Customs Tariff), being addressed to the Collector of
Customs (Appraisement), Customs House, Karachi. Copy to M/s. Otsuka Pakistan Ltd, 30-B,
Sindhi Muslim Cooperative Housing Society, Karachi and M/s. Geofman Pharmaceuticals, 204,
E. I. Lines, Dr. Dawood Pota Road, Karachi.]
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C. NO.3(70)STP/97 DATED 17 TH SEPTEMBER, 1997
SUBJECT:- CONSUMER GOODS AND CONSUMER DURABLES
I am directed to enclose a copy of letter No.SEEMA/A/KOT/ST/97 dated 15 th
September, 1997 on the subject cited above.
2. The consumer goods and consumer durables have been defined in SRO
675(I)/97, dated 29 th August, 1997; according to which following items shall qualify to
be consumer goods/ consumer durables.
1. These should be for direct human consumption or use, without any
further industrial process; and