Sales Tax Instructions

Sales Tax Instructions, 2009
[See amendment in section 3(1A) in budget 2003-2004]
[Issued by the CBR, Islamabad under the signature of Mr.Muhammad Zahir-ud-Din,
Secretary (STT). addressed to M/s A.F.Ferguzon & Co., Karachi. Copy endorsed to all the
Collectors of Sales Tax/Mirpur (AJ&K), Secretary (STP) and Secretary (STE), CBR.]
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C.No.(30)STR/99 DATED 15 TH DECEMBER, 1999
SUBJECT:- SALES TAX ON POL PRODUCTS FROM 11.12.1999.
I am directed to enclose copies of three notifications No.SRO.___ (I)/ 99,
SRO.___(I)/99 and SRO.___(I)/99 all dated 11 th December, 1999 applicable to the POL
products of (1) Attock Refineries Limited, Rawalpindi (A.R.L.), (2) Dhodak Refinery
Limited, Dhodak (DRL) and (3) National Refinery Limited, Karachi (N.R.L.)/Pakistan
Refinery Limited, Karachi (P.R.L.)/ imports, respectively.
2. Fixed Sales Prices (F.S.P.) of various regulated POL products have been
notified in column No.3 of the Notifications (e.g. in case of JP4, Motor Gasoline,
Premium Motor Gasoline, Kerosene Oil, High Speed Diesel and Light Diesel Oil) which
are inclusive of the element of sales tax. In other words, the F.S.Ps, given in column (3)
of the Table to the above referred notifications include the element of sales tax and the
products are assessable on a value equal to the prescribed price (Col.2)+Development
Surcharge included in Fixed Sales Price (Col.5)+Inland Freight Margin (Col.6). In other
words, the sales tax at 15% can be calculated by dividing F.S.P or fixed sales price (col.3)
by 115 and multiplying it by 15;
Sales Tax = FSP 115 x 15
However, in case of Furnace Oil, the fixed sale price shown in column (3) of the
notifications is not inclusive of sales tax and therefore sales tax is to be charged
over and above the fixed sale price of Furnace Oil, notified in the above said
notifications. JP-1 fuel is exempt from sales tax. Crude Petroleum Oils are liable
to sales tax at 15%.
3. The de-regulated POL products like Aviation Fuel 100/110 LL,
lubricants, greases, solvents, etc for which the fixed sale price is not notified, are also
chargeable to sales tax and the value of supply in such cases will be inclusive of all the
duties and taxes excluding sales tax in terms of clause (46) of section 2 of the Sales Tax
Act, 1990.
4. You are requested to kindly ensure that the POL products are correctly
assessed on the basis of prices/values notified in the enclosed notifications in case of
regulated items and on the basis of value of supply as provided in clause (46) of section 2
of the Sales Tax Act, 1990 in case of products whose prices have been de-regulated.
Encl:- (03 notifications) As above.
[Issued by the CBR, Islamabad under the signature of Mr.Zulfiqar A. Kazimi, Secretary
(STR), addressed to all the Collectors of Sales Tax/Mirpur (AJ&K), Collectors of Customs
(Appraisement)/ (Preventive)/ (Port Qasim), Karachi, Collector of Customs (Appraisement),
Lahore/all the Collectors of Central Excise.Ccopy endorsed to Secretary (STE), CBR.]