Sales Tax Instructions

Sales Tax Instructions, 2009
[Issued by the CBR, Islamabad, under the signature of Mr. Abdul Basit Chaudhry,
Second Secretary (ST-Budget), addressed to the Collector of Sales Tax, (East)Karachi/(West)
Karachi/Hyderabad/Hub(Balochistan)/Multan/Faisalabad/Lahore/Gujranwala/Rawalpindi
/Peshawar].Copy of letters 1/7/99-Sec.-I, dated 13 th April, 1999, U. O. No.6/99-DIG dated 2-01-
99 and O. M. No.F.7(26)Sol.I, dated 20.07.1976 are reproduced below:-
C. NO.1/7/99-SECURITY DATED 13 TH APRIL, 1999
SUBJECT: PROCUREMENT OF TWO BULLET PROOF MERCEDES BENZ CARS
The undersigned is directed to refer to this Ministry‘s O. M. of even number dated
09.04.1999 on the above subject and to state that Prime Minister‘s Salary, Allowances and
Privileges Act, 1975, is for the person of the Prime Minister. The vehicles have been imported by
the Government, which is security related and generally such imports are exempt from sales tax
and other cesses whether direct or indirect. It is, therefore, requested that necessary clarification
may please be issued to the concerned Collectorate of Customs for clearance of vehicles and their
accessories and spares which have already arrived to enable this Ministry to formally transfer
these vehicles etc. to the Cabinet Division for VVIP security. A copy of the advice of the Law
Division on the subject is also attached for further necessary action.
[Issued under the signature of Mr. Sibghat Mansoor, Joint Secretary, being addressed to
Mr. M. Iqbal Farid, Chairman, Islamabad, Central Board of Revenue, Islamabad.]
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U. O.NO.6/99-DTG., DATED 12 TH JANUARY, 1999
SUBJECT: CLARIFICTAION / INTERPRETATION OF SECTION 14(E) READ WITH
SECTION 2(F) OF THE PRIME MINISTER‘S SALARY, ALLOWANCES
AND PRIVILEGES ACT NO.LIX OF 1975.
Clause (f) of section 2 of the Prime Minister‘s Salary, Allowances and Privileges Act,
1975 (LIX of 1975) defines the expression ―official cars‖ to mean such cars as are from time to
time provided for use by the Prime Minister. Under clause (e) of sub-section (1) of section 14 ibid
no customs duties or sales tax shall be levied on such official cars if imported or purchased out of
bond by the Prime Minister on appointment or during his tenure of his office. The cumulative
effect of clause (f) of section 2 and clause (e) of sub-section (1) of section 14 is that exemption
from sales tax and customs duty would be available in respect of those official cars which are
provided for use by the Prime Minister and would not cover all the cars required for official use in
the Prime Minister‘s office. Therefore, the view of Central Bard of Revenue which states correct
legal position is supported and endorsed.
[Issued under the Ministry of Law, Justice and Human Rights, under the signature of Mr.
Muhammad Azam Warraich, Additional Draftsman.]
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O. M. NO. F. 7(26)/SOL.I DATED 20 TH JULY, 1976
SUBJECT: DIVULGENCE OF ADVICE IF MINISTRY OF LAW
The undersigned is directed to invite a reference to this Division‘s O. M. No.F.1(2)/54- Law dated
the 1 st March, 1975 (copy enclosed for ready reference) and to state that despite the instructions
circulated with the aforesaid O. M., instances are coming to the notice of this Division that advice
tendered by it is being divulged to outside agencies. In a recent case the advice tendered by this
Division was even placed before the court with the result that the same appeared in the judgment
passed by the court in extense. It can hardly be over-emphasized that the practice besides being
unusual is entirely wrong for all communications made and opinions tendered by this Division are
confidential and are meant only for interdepartmental guidance. It may sometimes well be that the
advice of this Division may not be correct and if such advice is placed before a court, the same
may be acted upon to the detriment of the Government. Even otherwise, an opinion of this