Sales Tax Instructions

Sales Tax Instructions, 2009
DECISION
The Cabinet considered the Summary, dated 10 th December, 1999, submitted by the
Revenue Division on ―Levy of GST on Retail Traders‖ and approved the proposal contained in
para 4(four) thereof.
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U.O.No.1/16-STB/99 DATED 22 ND DECEMBER, 1999
SUBJECT:-
IMMEDIATE MEASURES OF REFORM OF TAX SYSTEM.
Please refer to the Summary for the Cabinet on the subject noted above and the
decision of the Cabinet thereon (copies enclosed).
2. The Member (Sales Tax) has directed that appropriate action may be
initiated by the concerned Sections of the Sales Tax Wing to implement the Cabinet
Decisions.
[Issued by the CBR, Islamabad under the signature of Mr. Abdul Basit Chaudhry, Second
Secretary (Sales Tax) addressed to C(ST-I)/C(ST-II)/S(STP)/ S(STT)/S(STR)
/S(STE)/S(STJ)/S(STM)/S(STC)/S(STA)/S(ST.Int.Audit)/S (ST.Ext.Audit),]
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SUMMARY FOR THE CABINET
SUBJECT:-
IMMEDIATE MEASURES OF REFORM OF TAX SYSTEM.
A sub-group on Tax Reforms & Public Finance was set up under Dr. Hafiz A. Pasha to
review and formulate recommendations, among others, on taxation policy. The report of the subgroup
was reviewed in the Ministry of Finance in consultation with the Governor SBP and
Revenue Division.
2. While the recommendations of the sub-group are many and varied, it is appropriate at
this juncture to address only policy issues and to generally postpone the secondary matters to the
next budget.
3. The following recommendations are proposed to be announced in the Chief Executive‘s
address on 15.12.1999:-
(i) In order to promote documentation of economy,
- compulsory maintenance of basic accounts (trading account, profit & loss
account, net worth account) should be prescribed to qualify for Universal Self
Assessment Scheme.
- for those not maintaining such accounts, a surcharge @ 10% shall be levied in
addition to the normal tax liability.
- for GST purposes, transactions above Rs.50,000 will have to be through cheque
to claim input credit (effective immediately).
- central excise duty on bank cheques and credit cards transactions should be
withdrawn immediately.