Sales Tax Instructions

Sales Tax Instructions, 2009
SUBJECT: IMPORT OF PHARMACEUTICAL RAW
MATERIALS UNDER SRO 211(I)/2002
DATED 04.06.2002.
I am directed to refer to the subject cited above and to say that it has been
brought to the Board‘s notice that the Customs staff at the port of clearance is asking the
importer to produce the certificate from Ministry of Health prior seeking release of their
consignments of pharmaceutical raw materials without payment of sales tax in terms of
SRO 673(I)/2005 dated 02.07.2005 read with the erstwhile Customs Notification SRO
372(I)/2002 dated 15.06.2002.
2. It is clarified that since the new Sales Tax Notification [SRO 673(I)/2005
dated 02.07.2005] does not prescribe any such condition to produce certificate from the
Ministry of Health for granting sales tax exemption on pharmaceutical raw materials, it is
desired that the concerned appraising staff may be directed to allow release of imported
raw materials for the basic manufacture of pharmaceutical active ingredients and for
manufacture of pharmaceutical products, without payment of sales tax and without
requiring any certification from the Ministry of Health.
[Issued by the CBR, Islamabad, under the signature of Dr. Muhammad Zubair, Secretary
(ST&CE-Budget), addressed to the Collector, Collectorate of Customs, (Appraisement)
/(Preventive), Custom House, Karachi, the Collector, Collectorate of Customs ,Port Qasim/
Lahore/Faisalabad/Sambrial (Sialkot)/ Rawalpindi/ Peshawar, the Collector, Collectorate of
Customs, Sales Tax & Central Excise, Hyderabad/Quetta/Multan and copy endorsed to the
Member (Customs), Central Board of Revenue, Islamabad and Mr. Abdur Razzaque, Acting
Secretary, Pakistan Pharmaceutical Manufacturers‘ Association, Karachi.]
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C. NO.1(1)ST.EXT.AUDIT/2004 DATED 21 ST JULY, 2005
SUBJECT:
AUDIT OF SALES TAX BY RRA
I am directed to refer to the subject noted above and to say that as per minutes
of the meeting dated 2.10.2004 held between the Chairman (CBR) and the Deputy
Auditor General, Revenue Receipt Audit, Lahore, the DAG has complained that:
The audit department is facing difficulty in obtaining the record of sales tax
registered person for audit. There are numerous cases of non production and
late production of record which results in wastage of resourses and ultimately
affect the quality of audit; it is the responsibility of the Collectors to produce
the original record of the registered person to the audit teams of RRA in their
office.
The Collectors change the list of units as requisitioned by the DRRA and
instead produce record of the units of their own choice which are generally
found to be those of requisite units and the one provided by the Collectors in