Sales Tax Instructions

Sales Tax Instructions, 2009
C.No. 1/4-STE/2002 DATED 15 TH JUNE, 2002
SUBJECT:-
REQUEST TO REMOVE THE DIFFICULTY BEING FACED IN
ADJUSTMENT OF INPUT TAX PAID ON ELECTRICITY.
For the Budget 2002-2003, measures relating to sales tax appear in section 6 of
the Finance Ordinance, 2002 and 18 new notifications (SRO 334(I)/2002 to SRO
351(I)/2002, dated 15 th June, 2002). The salient features are as follows:-
1. REVENUE MEASURES:
(i)
(ii)
(iii)
Exemption of sales tax on vegetable ghee and cooking oils has been
withdrawn with immediate effect. Further tax @3% will not be levied on
the supplies of vegetable ghee and cooking oil to un-registered buyers.
The rate of sales tax on imported vegetable oils has been increased from
15% to 20%. Besides, the supply of imported vegetable oils will also be
taxable. The locally produced vegetable oil from imported as well as
locally produced oil seeds will remain exempt provided it is marketed as
crude or having undergone only the process of washing. Any further
refining process categorizing them as cooking oil will render them liable
to tax. After withdrawal of exemption the exports of vegetable
ghee/cooking oil will be zero-rated; accordingly S.R.O. 267(I)/2002,
dated the 15 th May, 2002 allowing repayment of sales tax on the export
of these products under section 61 of the Act has been rescinded.
Alongwith imported vegetable oils, the rate of sales tax has been increased
from 15% to 20% on the following raw materials:-
S.No. Item PCT Heading
1. Talc 2526.1010
2526.2000
2. Solvent Oil (Non- 2710.0030
Composite)
3. Calcium Carbonate 2836.5000
4. Maleic Anhydride 2917.1400
5. Acrylic Tops 5506.3000
One item (appearing at S. No. 130 of SRO 389(I)/2001, dated
18.06.2001) has been omitted. Thus, the rate of tax on ‗other unsaturated
polyesters‘ of PCT 3907.9100 has been reduced from 20% to 15%.
2. SETTING UP OF LARGE TAXPAYERS UNIT IN KARACHI
Necessary notifications have been issued to set up the Large Taxpayers Unit
(LTU) at Karachi with effect from 01.07.2002. These notifications inter-alia cover
appointment of the Director General of Large Taxpayers Unit and other sales tax officers
(SRO 334(I)/2002, dated 15.6.2002) and transfer of registered persons to the LTU (SRO
350(I)/2002, dated 15.6.2002). The adjudication of cases relating to LTU shall be done
only by the Collector (Adjudication-III) (SROs 337 & 338(I)/2002, dated 15.6.2002).