Sales Tax Instructions

Sales Tax Instructions, 2009
coal miners in Balochistan shared by Government of Pakistan and Balochistan
Government has been made on the recommendations of the Committee specifically
constituted by the Federal Government. The arrangement is however, to be reviewed on
annual basis starting w.e.f. 01.01.2001. This financial-cum-administrative facility to the
coal miners of Balochistan has been given by the Government in view of the fact that as
compared to other provinces, coal mining industry in Balochistan is facing serious
problems such as poor transportation facilities, lower productivity, high production and
transportation cost and lack of availability of modern mining equipments.
2. Notwithstanding the above, the concerns and apprehensions of the
Government of the Punjab as embodied in the above referred letter were brought to
Finance Minister‘s notice, who has been pleased to observe that the conditions of mining
industry in Balochistan are entirely different that those prevailing in other provinces.
Before this new arrangement was put in place, the coal miners of Balochistan were
paying nothing on account of GST. The present arrangement is therefore, expected to
bring better harmonization because Balochistan coal miners have, under the new
arrangement, agreed to pay GST though initially at lower rates. The Federal Government
will be able to achieve complete harmony in the next two to three years by bringing them
under standard GST regime. The fact that at least compliance to GST laws has been
started by the coal miners of Balochistan needs to be appreciated by other provinces
because when they were paying no tax on coal, they could better manipulate the market
in disadvantage to others.
[Issued by the CBR, Islamabad under the signature of Mr. Iftikhar Qutab, Chief (Sales
Tax-II) addressed to the Secretary, Industries & Mineral Development Department, Lahore.]
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C. NO.3(9)STP/99 DATED 3 RD NOVEMBER, 2000
SUBJECT:-
EXEMPTION OF SALES TAX & HOSTILE WORDING IN SRO
I am directed to refer to your D. O. letter F. No.1(3)2000-DD(PP-1), dated
29.08.2000 addressed to Member (Customs) which has been forwarded to this Wing for
necessary action.
2. The understanding that imported plant and machinery are exempt from
sales tax is not correct. It is clarified that under S. No.44 of the Sixth Schedule to the
Sales Tax Act, 1990 only such imported plant and machinery as is notified by the Federal
Government and as is not manufactured locally, is entitled to the exemption from sales
tax if used in the manufacture of taxable goods. In this regard the Federal Government
has issued a Notification SRO 987(I)/99, dated 30.08.1999, which may kindly be perused
to correctly understand the sales tax exemption available to plant and machinery imported
by registered persons for use in the manufacture of taxable goods.
[Issued by the CBR., Islamabad, under the signature of Dr. Ashfaq Ahmed Tunio,
Secretary (STP), addressed to Mr. Talat Rasheed Miyan, Director General, Board of Investment,
Attatruk Avenue, G-5/1, Islamabad & Collector of Sales Tax & Central Excise, Peshawar,
Rawalpindi, Gujranwala, (East) Karachi, (West) Karachi, Lahore, Multan, Hyderabad, Quetta,
Faisalabad & Secretary (Sales Tax Education).