Sales Tax Instructions

Sales Tax Instructions, 2009
I am directed to refer to your letter No.1/3-collector/E/98/2948, dated 08-05-1998
on the above subject and to state that a registered person, whether an importer or
manufacturer, may be involved in a economic activity which is not at present taxable
under the Sales Tax Act, 1990. Those supplies cannot be subject to Sales Tax only
because of the reason that he is a registered person. The viewpoint of the Collector is,
therefore, not confirmed by the Board.
[Issued by the CBR., Islamabad, under the signature of Mr. Akhtar Ali Secretary (STP
addressed to the Collector of Sales Tax (East), Karachi.]
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C.No.1/10-STB/98 DATED 12 TH JUNE, 1998
SUBJECT:-
SALES TAX – BUDGET DAY INSTRUCTIONS FOR THE
BUDGET 1998-1999.
I am directed to invite your attention to the following documents relating to the
above subject:-
(a) Clause 7 and 8 of the Finance Bill, 1998;
(b) Sub-clause XX of Clause 7 (i.e. the revised Sixth Schedule to the Sales
Tax Act, 1990) of the said Bill takes effect immediately i.e. from the 12 th
June, 1998;
(c) Notification No. SRO 575(I)/98, 576(I)/98, 577(I)/98, 578(I)/ 98,
579(I)/98, 582(I)/98 and 583(I)/98 all dated 12.6.1998 issued by the
Federal Government; and
(d) Notification No. 580(I)/98 and 581(I)/98, dated 12.6.1998 issued by the
CBR.
I. IMMEDIATE MEASURES:
2. Sales Tax at 12.5% has been levied on the import and local supplies of
palm oil and soyabean oil w.e.f. 12.06.1998. Customs duty rate on such oils have been
reduced corresponding with a view to ensuring that there is no effect on consumer‘s price
of edible oils and vegetable ghee. Local blending and local packing/ re-packing of palm
oil and their hydrogenated products shall continue to be exempt from the levy of sales
tax.
3. Effective 12 th June, 1998, sales tax @ 12.5% has also been levied on
following packaged items (both imported and locally produced) bearing brand names and
trade marks;
(1) Fresh and dried milk, yogurt, bottled, canned or packaged and sold under
brand name or trade marks;
(2) Table salt including iodized salt packaged and sold under brand names or
trade marks;
(3) Red chilies, ginger and turmeric packaged and sold under brand names or
trade marks;